WILL ANYONE APPROVE ME ???

Anonymous · ‎05-14-2018

HI ... IM IN A POSITION WHERE IM IN NEED OF A CAR ASAP ... BEING AS ID BE SPENDING hard earned money i would like to purchase new n consider this car an investment. im interested in a new civic ... true car pricing at 20,699 ... with title and taxes and all else im looking at a 22500$ loan. ... i have a credit score of 520 ... i am a waitress ... on paper i make 1000$ a month i can prove. in all reality i make more then twice that but cant claim all tips. as far as debt to income .. i live with family and only payments im responsible for is my $90 cell bill. i have $2000 to put down. also i have one previous car loan from years ago with honda financial that shows on credit to be a perfect loan.. zero late or missed payments. do i have any hope of being approved for a loan?

Anonymous · ‎05-14-2018

@Anonymous wrote:
i would like to purchase new n consider this car an investment. im interested in a new civic ... true car pricing at 20,699 ... with title and taxes and all else im looking at a 22500$ loan. ... i have a credit score of 520 ... i am a waitress ... on paper i make 1000$ a month

Cars are depreciating assets (once you drive it off the lot you will never get back everything you paid into it) so I would try to avoid calling it an investment. With a 520, you have some derogatory info on your credit somewhere. Getting a new car with only 2k down (and a decent APR) is not likely.

pipeguy · ‎05-14-2018

While your income is "iffy" most auto loans do not require proof of income such as a w-2 or check stubs so you could list your actual gross income which would probably get you qualified. The bigger question is why is your credit score only 520? With a true credit score that low you are going to have issues getting an auto loan for a new car or at the very least a loan with a reasonable interest rate.

To give you some idea, a $20k loan for 60 months at 2.5% would have payments of $355 a month, the same loan at 18% would require payments of $508. While I would normally suggest going to a late model used vehicle (2-3 years old) as more affordable and a better choice, the 520 credit score really needs to be addressed as it is going to hurt you even if you manage to get approved for a used (lower price) vehicle. Keep in mind that a 60-month loan means your living expenses will remain the same for the next 5 years as far as budgeting, and we both know that probably won't be the case.

Anonymous · ‎05-14-2018

I’m not a car loan afficiando by any means, but, in the realm of car loans, there’s nothing about not bring approved. The matter of getting approved and not being screwed over is central thing to worry about more with car loans, especially when your in need of one right away. First and foremost, don’t give off a since of desperation because they’ll smell blood in the water; go in knowing your info and show your a knowledgable buyer. Second, you should try to go through a credit union if at all possible. They’re more to be in your corner so getting a much better rate is highly possible with them.

Anonymous · ‎05-14-2018

More to this point -- I highly suggest having a loan lined up *before* you ever step foot on a lot anywhere. Sub-prime or Buy-Here-Pay-Here car dealers are notorious for "shotgunning" your credit app to everyone under the sun to hope you get approved somewhere for something. And when they say you are guaranteed to be approved -- those are the worst offenders.

You could very well end up with a car that is overpriced, no warranty, at 24.99% APR and they'll put a Lo-Jack in your car so that if you miss a payment by even a day, your car won't start.

They have this all down to a science to make the most money off the folks who are desperate to get to work.

Anonymous · ‎05-14-2018

like i stated. i was planning on going to honda dealership i used some years ago when i bought a civic with my mother as a cosigner and had a perfect no late payment history with that loan. im well aware my interest rate would be high. i prepared myself for a 500$ payment. i plan to save 2wice the payment every month and have a 6 year loan payed off in 3. my question was basically if the approval was even possible of if i was just kidding myself

pipeguy · ‎05-14-2018

It would help to know why your credit score is at 520, scores on that level typically have more than a few derogatory marks such as bankruptcy, late payments, repo's, etc. As we have seen posted on these forums, just about any loan can be approved using lots of money down, or having a cosigner, etc. That does not mean that is the best way to pay (way overpay) for a vehicle. If you could offer some insight into your overall credit profile, especially why your current score is so low, it would be helpful in giving you a better answer.

Anonymous · ‎05-14-2018

my credit score is really just do to being young AND dumb and to inolved with credit cards... have right offs and closed cards on my score .. never bankrupt or anytrhing like that

Anonymous · ‎05-14-2018

i basically want to use this loan to help build my credit ... as i have the availibilty to make high interest payments i no for a fact ill never be late

Anonymous · ‎05-14-2018

@Anonymous wrote:
i basically want to use this loan to help build my credit ... as i have the availibilty to make high interest payments i no for a fact ill never be late

You don't need to spend more than you can afford to build your credit.

High interest car loans are a terrible trap where if your financial situation ever changes (let's say you no longer live at home and have rent, utilities, etc.) you can't even sell the car to get out of it because you owe more than it's worth.

A brand new car may be out of reach for your current financial situation. You'd be best off waiting until you can clean up/build your credit and get a decent rate on a few year old car OR add to the money you have saved for a down payment and buy something for cash while you work on your credit.