What can I get approved for/where?

[Anonymous]

I'm 21 in Alabama with about 2 years of credit. 1 credit card and about $10,000 in student loans which I've been paying on for about 6 months so far. My monthly income is about $2,500. About a year ago I had 2 30 late payments on a credit card that was closed recently after that situation. My credit limit now is only 500' but I plan on asking for more in a month or so. I want a 2010 camaro looking at about $20,000-24,000 range for purchase price if I buy private. My credit scores are TU-635 Ex-636 and EQ- 626. I plan on putting down at least $2,000. Where should I apply for a loan and with with my credit the way it is? do I have a chance to even get that much of a loan? And I prefer to buy private cause I can get the same car a lot cheaper, but I know I'd have a better chance of getting approved from a dealer, but I'd end up paying more. Also, what kind of APR should I be expecting? All input is appreciated. btw I did apply at my CU a few months back, but they wanted a co-signer which I don't have. And sorry this is so long, just trying to put all the info I can think of that may impact things. Once again thanks guys.

[Anonymous]

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@Anonymous wrote:
I'm 21 in Alabama with about 2 years of credit. 1 credit card and about $10,000 in student loans which I've been paying on for about 6 months so far. My monthly income is about $2,500. About a year ago I had 2 30 late payments on a credit card that was closed recently after that situation. My credit limit now is only 500' but I plan on asking for more in a month or so. I want a 2010 camaro looking at about $20,000-24,000 range for purchase price if I buy private. My credit scores are TU-635 Ex-636 and EQ- 626. I plan on putting down at least $2,000. Where should I apply for a loan and with with my credit the way it is? do I have a chance to even get that much of a loan? And I prefer to buy private cause I can get the same car a lot cheaper, but I know I'd have a better chance of getting approved from a dealer, but I'd end up paying more. Also, what kind of APR should I be expecting? All input is appreciated. btw I did apply at my CU a few months back, but they wanted a co-signer which I don't have. And sorry this is so long, just trying to put all the info I can think of that may impact things. Once again thanks guys.

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Sometimes we just cant have what we want (at least not right away). The price of the car used or new will more then likely be out of your range with-out a co-signer or joint applicant considering your income and short credit history with a negative account.

Since you already applied with a CU a few months back and they also wanted a co-signer, that should give you a little push to work on building up your scores and fixing the negative things on your credit report.

No reason to put yourself in that type of debt presently. Hold off until you can improve your scores and your credit reports and build a little longer history, while letting the negative remarks age (hopefully you get these negative remarks removed). In the mean time settle for a decent used car for a few thousand dollars and work on your credit reports for about 6 months to a year IMO. Then once you have acheived building up your history and improving your credit scores you should be able to apply for a car loan in that price range with-out a co-signer.

[pizzadude]

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@Anonymous wrote:

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Sometimes we just cant have what we want (at least not right away). The price of the car used or new will more then likely be out of your range with-out a co-signer or joint applicant considering your income and short credit history with a negative account.

Since you already applied with a CU a few months back and they also wanted a co-signer, that should give you a little push to work on building up your scores and fixing the negative things on your credit report.

No reason to put yourself in that type of debt presently. Hold off until you can improve your scores and your credit reports and build a little longer history, while letting the negative remarks age (hopefully you get these negative remarks removed). In the mean time settle for a decent used car for a few thousand dollars and work on your credit reports for about 6 months to a year IMO. Then once you have acheived building up your history and improving your credit scores you should be able to apply for a car loan in that price range with-out a co-signer.

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+1.

I would also advise looking for a much less expensive car, getting a loan will be easier and it will give you positive installment loan history.   Maybe after a few years you will be in better shape to qualify for a larger loan amount.

Also ~ have you even priced out insurance for a new-ish Camaro ?  As a 21 year old ( I'm assuming you are male ) ~ you will likely be paying HUNDREDS per month for insurance.

[wwinter]

Definitely look for a less pricey car.  And as a car-guy I can't believe I'm saying that, but the other posters are correct.  You're just setting yourself up to screw yourself financially.  Your APR will be high so your monthly payments will be high and a smaller portion of your monthly payments will go towards the principal balance of the loan.  If you want to sell the car a year or two later you'll see just how badly a high APR will screw you when you see how much of the principal is yet unpaid. 

The insurance will be a killer too.  When I was 19 I tried to buy a 1988 Lotus Esprit Turbo (this was 1990) and I could only find one insurer willing to cover me (State Farm) and they wanted just under $14,000 per year.  (fourteen thousand dollars!!!!!)  I passed on the Lotus (big sigh) ultimately as I just couldn't, even at my financially ignorant stAGE of 19, justify that much moolah for car insurance.

But if you MUST have the Camaro I suggest you go to the Chevy dealerships and see what sort of financing they can offer you.  8 days ago I bought a new car and Mercedes Financial gave me a rate MUCH lower than my bank (Chase) or anyone else for that matter.  I think the dealerships are really motivated to get you in their cars so they make the financing as attractive as possible.

Good luck and be smart.

[Anonymous]

Hello Presidentty Let me be the first to Welcome you to the forums!!!

When applying for an auto loan there are a few beast you have to fight:

a. Debt to income

b. Credit score

c. Credit History

a. Generally under normal credit terms it is required to put down 10% of the MSRP of a new auto and 20% for a pre-owned car. (in the case of a 24,000 auto 20% would be $4,800 plus all taxes, registration, dealer fees, etc.).

Although you are currently making good money Banks don't like to see your car payment go over 20% of your monthly income. The banks can give or take a few percentage points as they will consider your age and the type of car you are looking to get due to higher insurance premiums, gas ect. If you want the Camaro I say go for it... you will need to put down roughly 10k-12k to get your payment to a respectable $350-$400/mo auto payment.

B. Great Credit scores don't mean anything to auto financiers if you have a thin file or lack larger installment histories

You will be denied or asked for a Co-signer if you have:

1. short credit history

2. Lack of "big ticket" installment loans ie: auto, mortgage (student loans do not count under this criteria).

C. If you default on smaller payments ie: credit cards, you don't look like a good candidate to handle larger loans. You have a credit history of 2 years and already have lates and a closed account. That is a red flag for auto financiers! Be weary that you wouldn't get the top tiers for auto financing with this info even with a co signer.

hope this helps--Good Luck! 

[Anonymous]

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@Anonymous wrote:

Hello Presidentty Let me be the first to Welcome you to the forums!!!

When applying for an auto loan there are a few beast you have to fight:

a. Debt to income

b. Credit score

c. Credit History

a. Generally under normal credit terms it is required to put down 10% of the MSRP of a new auto and 20% for a pre-owned car. (in the case of a 24,000 auto 20% would be $4,800 plus all taxes, registration, dealer fees, etc.).

Although you are currently making good money Banks don't like to see your car payment go over 20% of your monthly income. The banks can give or take a few percentage points as they will consider your age and the type of car you are looking to get due to higher insurance premiums, gas ect. If you want the Camaro I say go for it... you will need to put down roughly 10k-12k to get your payment to a respectable $350-$400/mo auto payment.

B. Great Credit scores don't mean anything to auto financiers if you have a thin file or lack larger installment histories

You will be denied or asked for a Co-signer if you have:

1. short credit history

2. Lack of "big ticket" installment loans ie: auto, mortgage (student loans do not count under this criteria).

C. If you default on smaller payments ie: credit cards, you don't look like a good candidate to handle larger loans. You have a credit history of 2 years and already have lates and a closed account. That is a red flag for auto financiers! Be weary that you wouldn't get the top tiers for auto financing with this info even with a co signer.

hope this helps--Good Luck! 

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Just a quick question, are you sure about this since I am planning to buy a mid-size sedan in few months and I am banking big time on my 72+ months of good standing of $20,000 student loan. (3 year deffered and 3+ year on-time payments) to give me a boost as responsible enough to handle big ticket items. Rest all factors that you mentioned above are in my favor.

[Anonymous]

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@Anonymous wrote:

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Just a quick question, are you sure about this since I am planning to buy a mid-size sedan in few months and I am banking big time on my 72+ months of good standing of $20,000 student loan. (3 year deffered and 3+ year on-time payments) to give me a boost as responsible enough to handle big ticket items. Rest all factors that you mentioned above are in my favor.

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In your case your history should allow for an auto approval given all else is ok. Lack of large installments are magnified when one has a "thin file" it gets even more difficult (but not impossible) when someone has a slip up or two on a CR with short history.

[Revelate]

Sigh, redundant post deleted. I missed the last response completely.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Just a quick question, are you sure about this since I am planning to buy a mid-size sedan in few months and I am banking big time on my 72+ months of good standing of $20,000 student loan. (3 year deffered and 3+ year on-time payments) to give me a boost as responsible enough to handle big ticket items. Rest all factors that you mentioned above are in my favor.

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In your case your history should allow for an auto approval given all else is ok. Lack of large installments are magnified when one has a "thin file" it gets even more difficult (but not impossible) when someone has a slip up or two on a CR with short history.

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Phew.... Thanks