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Too many open car loans on credit- but I need a car!

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
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Established Member

Too many open car loans on credit- but I need a car!

So, as we know, divorces can be messy. Since the divorce, I got a new car, and a new man. We're getting married next year (YEAH!). Anyway, my fiance needs a new truck. Badly. We were planning on getting his vehicle to limp along a little while longer since he is in the middle of our home purchase, so we can't buy a vehicle using his credit (which is over 700). Unfortunately, his vehicle was totalled last week. No worries, right? I make more money and have decent scores (mid to upper 600's). However, my ex-husband refuses to refinance or trade in the truck we had when we were together (it's in both names). I also co-signed for our daughter on a brand new car (I know, I know) while we were still married. Both vehicles are in perfect standing- no lates or anything. So far the banks have refused to extend me credit for another vehicle since I have those two open loans plus my own jeep reporting on my credit. Sadly, the divorce decree only shows that he is to pay toward credit card debt and doesn't specify the truck loan. Not sure what I can do. Any ideas?

Message 1 of 6
5 REPLIES 5
Valued Contributor

Re: Too many open car loans on credit- but I need a car!

How long before you close on the house?

Buy a beater for now?

Rent the cheapest car you can find?

How many banks did you check with?

Subprime banks and refinance later?'

Have your daughter refinance on her own or just with her dad?

Rebuild started in 2014  -  $100k total unsecured credit in 2017  -  $200k+ total unsecured credit in 2019.

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Message 2 of 6
Frequent Contributor

Re: Too many open car loans on credit- but I need a car!

What about having him lease a cheap car?

 

I am not necessarily recommending this deal.  I know this is a reputable dealer and seems not too bad.  Even if you roll the tax and everything into it, it might still end up being about $200/month.  Is that going to be a problem buying the house?

 

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MSRP: $22,570. 4 DR, 4 CYL, FWD, AUTO. STK #198087, VIN #KL301299. TOTAL PYMTS: $4,572. RESIDUAL: $12,639. $1,777 DUE AT SIGNING INCLUDES $1,000 DOWN PYMT + FIRST MO. PYMNT + $0 SEC. DEP. + $650 BANK FEE. INCLUDES $1,750 LEASE REBATE + $1,500 LEASE LOYALTY REBATE****(CURRENT GM LESSEES ONLY). PRICES INCLUDE ALL COSTS TO BE PAID BY CONSUMER, EXCEPT FOR LICENSING COSTS, REGISTRATION FEES, AND TAXES. CONSUMER RESPONSIBLE FOR DOC FEE OF $399. OFFERS SUBJECT TO PRIMARY LENDERS APPROVAL TO QUALIFIED BUYERS ON SELECT MODELS. SEE DEALER FOR DETAILS. †LEASES INCLUDE 10K MI/YR, .25¢ THEREAFTER.
Message 3 of 6
Established Member

Re: Too many open car loans on credit- but I need a car!

I wish I knew when the house would close. We ordered a new mobile home and are having it put on our land. Everything so far has been a waiting game. Right now we're waiting on bids for the driveway, septic, etc. Then the appraisal of the land that we're putting up.

 

We've tried with at least 6 different banks. Subprime vs prime wouldn't matter. It's the fact that I have 3 open loans. Even OneMain wanted a co-signer for that reason alone. Otherwise, my credit is good.

 

I tried to have my daughter refinance, but she got a 1.9% loan on her car when she bought it. She's been paying it down and is worried that it'll end up costing her way more if she does (which it will).

 

I'll probably have no choice but to buy him a beater. Smiley Sad

Message 4 of 6
Established Member

Re: Too many open car loans on credit- but I need a car!

They told us not to use his credit at all while we're in the middle of the buying process. I don't want to mess up anything to do with our house. In the long run, that's way more important. 

Message 5 of 6
Valued Contributor

Re: Too many open car loans on credit- but I need a car!

I'm guessing you already tried Capital One's Auto Nav? Any chance you've tried a credit union (they tend to be more understanding esp. if you have a relationship w/ a local one)? Finally any opinions from dealers who must surely have dealt with this before?

 

At the end of the day, I think you have your daughter refi. Yes, her rate will go up a bit. But frankly if she has good credit she can do pretty well (DCU is at 4.24%, Cap One could be lower). Maybe even pay for part of the increased interest cost though I don't think you should have to.

Message 6 of 6