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Low Credit/Need Car


Low Credit/Need Car

Hi, I'm a student who work part time and i am in need of a car. Ive been going to a few a dealers but they all deny me i even tried DCU and they denied me as well. Theirs reasons are: credit too new, insuficient credit history, derogatory report. I have one collection from 06/2013 due a medical emergency and that is hurting my credit the most, i also have established a lot of accounts recently. I have a lot of inquiries mainly from cars and utilities but no one will apporve me, i can give up to 2k down and i have an income of 2600 and DTI of about 26%, 700 a month

I have a walmart 0/150, quicksilverone 0/300, capone secured 150/201, Freedom (au) 1086/2700, Amazon Visa (au) 0/500. My AAOA: .5 years 

TU: 641

EQ: 616

EX: 606


Message 1 of 5
Valued Contributor

Re: Low Credit/Need Car

1) So the only bad thing on your credit report is that medical collection? No late payments anywhere, etc...?


2) Has the collection been paid in full? What is the amount on the collection (round it off a little bit by $10 or so, to maintain privacy)? (If not paid in full, wait for advice here, don't send a check one second after reading this question)


3) Your income: 2600 per month or per year? Is that pre-tax? Also what is the source of the income?


4) Finally, how much car are you looking to buy/what car(s) in particular are you looking at? Realistically, when do you need this car by?

For an urgent question Monday thru Fridays, feel free to email me directly remembermyfico //at// gmail /dot/ com if you need a response in 24 hours.
Message 2 of 5

Re: Low Credit/Need Car

Nope there are no baddies on my report other than the medical collection which is $330 however my credit is pretty new since im still in school and i just turned 20, yes the 2600 is pre tax and i work in retail, and im looking for the cheapest new car possible so probably the nissan versa  probably get a loan around 14,000 and i need the car asap.

i just got denied by cap one but approved by Roadloans for 14,500 in financing however its at a rediculous 18.00% apr

Message 3 of 5

Re: Low Credit/Need Car

2600 per month

Message 4 of 5
Valued Contributor

Re: Low Credit/Need Car

1) You need to work on that medical collection. Good news is it's a medical collection. Not sure if it's already been paid. But either way, you need to follow these steps EXACTLY. Google exactly this without the quotes: "whychat hipaa program guide"


Follow the directions EXACTLY. If not already paid in full, you need to come up with the $330, but don't "steal" from your down payment. Try to see if you can save that money up.


2) Look into Hughes Federal Credit Union if you've not had any auto loans before. A prior member (also a student) reported success with them and their First Time Auto Loan program (I guess they approve at like ~5% with a 580+ FICO?)


Note these requirements, not sure if you meet them:


  • 15 percent cash down payment of total purchase price (minus trade-in or rebates)

  • 12 months of consistent income with current employer

3) If you need a car, you need a car. You may have to go with Roadloans. BUT work on getting the medical collection off ASAP. I think if we get your score up to the 700s, it'll really help with refinancing.


4) Lastly that Freedom au card maybe hurting you because of the util. Ideally the cardholder would take the balance lower haha? Otherwise how old is that card (aka when was it opened)?


For an urgent question Monday thru Fridays, feel free to email me directly remembermyfico //at// gmail /dot/ com if you need a response in 24 hours.
Message 5 of 5