Hey guys. Looking for an advice...I’ve been looking to buy a car but since my credit is in the process of rebuilding I can’t get many approvals. I got approved through Carmax but my APR is 18%, same at drive time if not more! A friend of mine recommended getting car through place called “off lease only” in Florida, waiting to hear back from them! I don’t have a credit union account... Does anyone know of any places that work with bad credit and offer reasonable APR? Also about that “off lease only” dealer..if anyone had ever gotten a car through them, I’d love to hear your feedback! Also as I’ve mentioned my credit is 575, I don’t have a repo or bankruptcy but I do have 3 accounts in collections. Raised my score by 60 points in the last 2 months by opening 2 secured credit cards through my Bank of America.
Welcome to the myFICO forums!
Does anyone know of any places that work with bad credit and offer reasonable APR?
The problem is that bad credit does not get reasonable APRs. Bad credit poses a higher risk to a lender which is why you are charged a higher APR.
I don’t have a repo or bankruptcy but I do have 3 accounts in collections.
An account in collections is a serious derogatory let alone three accounts in collections. A collection account is as serious as a repo when it comes to credit scoring.
Raised my score by 60 points in the last 2 months by opening 2 secured credit cards through my Bank of America.
Is this score FICO 8 or is it VantageScore. A 60 point increase is promising. This most likely indicates that your low score(s) are due to more than just accounts in collections. Active revolving credit accounts reporting positive payment history will most definitely help your scores.
You are probably not going to find a great APR on a used car loan anytime soon. Continue to make on-time payments to your two CCs. What is the Date of First Delinquency (DoFD) on your collection accounts? Who are your collections with? How much do you own? Are you able to pay off the collection accounts? If so you might be able to negotiate a Pay For Deletion (PFD).
Another option to consider is to purchase a car at 18% and make timely payments for a year and then try to refinance at a better APR. Make sure that the lender reports to all three credit reporting agencies (CRAs). I also recommend that why your CCs are secured, to only make one purchase a month and then pay in full (PIF) the balance due. Never carry a balance on a secured card. Whether you make one purchase or 100 purchases, you are going to build credit history at the same speed.
If you do not know what your FICO scores are, I suggest you visit creditchecktotal.com and use the $1 trial to look at your three bureau FICO scores. Just be sure you cancel the $1 trial before the 7 days are up or you will be charged for a full months subscription.
Best of Luck