Looking to purchase car with poor credit

[Anonymous]

Good afternoon. I am hoping I can get some help. I am in the market for a reliable vehicle. I was hoping to wait until my husband and I had higher FICO scores, but my car is not going to let us do that. My score is 560 & my husband has a score of 584. I have paid off all deliquent accounts & we have no major things like foreclosures. Is it possible to get an auto loan with our scores? We also have about 4000.00 for a down payment. I live in Louisiana.

[Anonymous]

I guess no one has any advice?

[Anonymous]

Still a lot of info missing to give any accurate advice.   Income, DTI, auto loan history, mortgage/rent, most recent baddie on CR, member of CU...    Just based on the info provided I would assume you could get a loan but cannot make an educated guess on the amount you could be approved for.  As stated numerous times on this forum, it is almost always less expensive over the long run to repair your current car rather than to get another one.

[Anonymous]

Well, combined, my husband and I make about 70000. The only debt we have is our mortgage which has been paid on time since we opened it 5 years ago. We actually have a house note well below what we can afford, but did not want to over extend ourselves. Our DIY is fairly low at 10%. We have been at out jobs for a long time.... Me 10 years, him 6 years. We had several cc in collections but all have been paid off as of 3 months ago. I have credit monitoring with all 3 bureaus and have watched our scores go up. Our last auto loan was 15 years ago. It was paid on time and in full. We both have a lengthy credit history. We are looking at a 10000 to 11000 used car with a 4000.00 down payment.

[Anonymous]

Given that info, I don't see you having a problem getting financed.  You may have to explain the reasons on the CC's in collections (how they got there and how to avoid that situation happening again) just because they are very recent.  36%-40% downpayment should get you approved, I would assume a CU would get you the best rates.

[Anonymous]

This is what I am hoping. I am not a member of a cu, but I am thinking since I can join one through my work, I may do this after the fact & refinance later. I am guessing we will be looking at around an apr of about 18%. All of our cc debt is my fault. Dh is a truck driver & when he was long haul & training we brought in GREAT money. I had not peoblem making the payments on the cc. Well, we had a baby & he switched to an account that had him home more & his pay was decreased  A LOT!!! I used the cc's for living for a while & got behind. Instead of calling and explaining, I just ignored it.Bad answer!!!! I have paid off everything over the course of the last 2 years. My POS Grand AM is stranding me weekly & with 150000+ miles, I just can't see paying a few thousand dollars to fix the problems. We are looking at a 2006 PT Cruiser with 20000 miles on it. the asking price is 9995. I figure a down payment of 4000 will help them forgive some of the stuff on our CR.

[Anonymous]

Well, wish us luck. We are going to a big, reputable dealer who does deal with bad credit. I am armed with our credit scores, w-2's, current pay stubs & a $4000 down payment for a car that is about $9000. While I know our scores (566 for me and 584 for my husband) put us in a med high risk range, I am optimistic they will work with us.

[mt2va]

Good luck.  I think you will find having a big down payment will help given your credit situation.  It shows you are putting equity into the vehicle right away. 

[Anonymous]

Glad to see your post in the Approvals.  Just one question for you, why the GAP insurance?  Your loan is already below the assessed value due to your large down payment.  By all means, check into it before you do anything but you are basically in a situation where you are insuring for something that should never happen.  Look through your paperwork, normally you can cancel the insurance within 30/60 days for no penalty.  

[Anonymous]

I got it for peace of mind. It was really inexpensive & I have been in a wreck before and had the car total for something that should not have totaled it. We also purchased a warranty with the credit union, as the dealer did not offer one. I have been stranded so many times with my other car & I just need to make sure I have all bases covered!