@Anonymous wrote:Went to a Toyota Dealership and I was approved for a 72 month payment plan at 11.49%
My Credit score is :
Equifax:626Experian: 640
TransUnion: 635
What should I do?
I don't know much, but assuming you're talking used car financing (and I think you were if I remember your other thread correctly), that's a reasonable offer around a 630ish score. What did the dealership give you as the score they pulled since the auto-enhanced one is more relevant for this discussion anyway? You might be able to get a better loan somewhere else, it doesn't hurt to find out if you do it in the short-term future.
People generally rave about credit union financing, if you have that option, it's worth trying at least, but that seems to be the default answer anyone gives around here so YMMV as an individual. I don't (or didn't forgot about an old account from a decade ago which I reactivated) have access to a CU when I went and got my loan, and I'm hoping to be able to refinance down to 13-14% with what should be a 620ish Equifax score at the time in six or so months.
One piece of advice: if you can afford to pay more than the minimum for a 72 month loan, absolutely do it to help drive down the principal faster and save you a large chunk of money in the long run over the course of the loan. Also make certain there's no early repayment penalty on it, as when your scores improve you can probably drop that APR by a few percentage points easily.
Regardless, congratulations!
@Anonymous wrote:Its a new car not used.
Definitely shop then, likely can do better I would imagine. It does depend what the dealer pulled though, in my case my Auto EX FICO was 46 points below the Experian FICO pulled by a lender on the same day. Incidently the lender pull was after the dealer one and the slew of inquiries were recorded.
If you can make the payments comfortably though, and you like the car, it's not a bad option: you're never stuck with the APR on a car loan, especially if your Auto FICO is out of whack like it was for me (no installment / car loans on record) then in six-twelve months it'll probably move enough to get it reduced further. You're not stuck with that APR for the term of the loan, unless it has a nasty pre-payment penalty, but most branded car dealerships aren't going to have that in their lending portfolio.