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Regular Contributor


Hi I got my first auto loan with capital one in 2010. I was approved but i had to have my mom cosign because I was only on my job for 2 weeks at the time. I had a few 30 60 and one 90 day lates on my CR for capital one ( The last 30 day late was in January) but in February I started rebuilding my credit and was able to get all negatives off my credit (surprisingly) and i paid my car loan up to date. I still owe $9000 on my car loan but I'm ready for a new car for several reasons but that will take forever to explain lol. My current scores range between 570-612 and I make about $33,500 a year and the only thing i have to pay on every month is my car loan and 2 cc which i got to rebuild my credit so i dont have really any debt. My question is can I get approved for a car loan of $15,700 with my income and credit history? Also how does the trade in process work when I still owe $9000 on my current car????? Any info would help Thanks!!

Message 1 of 5
New Contributor


How much is your car worth? The difference between what its worth (or what the dealer will give you) and what you owe is typically just added on to your new loan which means you will need a higher amount.

If women didn't exist, all the money in the world would have no meaning. -- Aristotle
Starting Score: 777
Current Score:  761
Goal Score:      800
Message 2 of 5
Regular Contributor


They said that my trade-in value is worth anywhere between $5000-$7000. meaning anwhere between $2000-$4000 will be added onto my loan but just wondering if i can be approved for a loan of $15,000-$19,000 with my income?

Message 3 of 5


Why in the world would you get in more debt with a new car when you have had such a difficult time already with the current debt you have now?


That is evident from your credit scores and your late pays. You can turn this around now before you make a fatal mistake of adding more debt.


Before considering a newer vehicle, get your current debt paid down so your scores increase. Pay off one of your cards entirely and the other one have less than 9% of the credit line used. See if you can GW the late pays off. This will get you into a much better buying position. It shouldn't take long. Others have done it here on this board.


How much is your current vehicle worth - not the trade in value but the KBB or NADA value?  Rolling negative equity from this loan to the next loan is a bad, bad idea. Separate the sale of your current vehicle from the purchase of a new vehicle. It is a terrible idea to trade your vehicle -the car dealership makes out like a bandit. They low ball your trade AND they don't come down on the new purchase so you end up paying a very heavy price. To get a better price, sell your own vehicle rather than trade. You avoid that extra $4k right away. Once that $4k compounds over 6 or 7 yrs (you know the dealership F&I guy will stick you with that because you are an inexperienced car buyer) that $4k can balloon to $6k or more. Don't do it.


Once you get your current debt in line, go to a CU and find out what they will approve you for and get your loan there rather than at the dealership where they already have set you up for failure.

Message 4 of 5
Regular Contributor


I dont have any debt. I had a few collections on my credit report which and in February 2013 i started fixing my credit so as of May 2013 they are now all removed the only thing I have to pay monthly on are my 2 cc which each have a $300 limit that I keep at 9% utilization and my current car payment of $262. I only had the late pays when i wasnt working due to an illness so i had a few late pays. but I can definitely afford a new car. In February my scores were at 463, 424, 490 so they have gone up about 100 points or so. The KBB value is $6,750. I really need a new car because this one is slowly dying on me. I have kids and a job so I cant afford to not have a car. I know that they will try to low ball me which is why I'm taking my dad with me who is a car salesman.  Thank for the advice. Any additional info is greatly appreciated

Message 5 of 5