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What scores or red flags do they look for?

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EaglesFan2006
Established Contributor

What scores or red flags do they look for?

I have less than great credit.  i'm weary of bank loans due to chexsystems.  But i'm in need of a car soon for work...what sorts of scores do they look for?  Mine are low-mid 600s

 

What sorts of red flags...i have 3 CA on there, all fairly aged (at least 4 years)

 

i have a current student loan, and i have no credit cards...

 

what do dealers look for?  What about leasing?

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: What scores or red flags do they look for?

You need to secure a nice down payment.
Message 2 of 9
EaglesFan2006
Established Contributor

Re: What scores or red flags do they look for?

thanks for the down payment info...

 

is there any other info anyone can offer, or advice

Message 3 of 9
Anonymous
Not applicable

Re: What scores or red flags do they look for?


@EaglesFan2006 wrote:

thanks for the down payment info...

 

is there any other info anyone can offer, or advice


 

yeah but that advice will be based on:


-What amount you are looking to finance.

-What do you gross.

-What do you net.

-Total monthly bills

-How long at your current job

-How long at your current address

-Rent/mortgage live with parents

-What car are you looking to buy (a Ford Focus or a V8 manual Mustang)

-Where in the lower 600s are your scores.

-Are those FICO scores from myFICO or real auto-enhanced scores or what

-Do you have a downpayment?

-Do you have a trade in?

-New car or used

-Viable co-signer


As you answer more of those questions better advice can be given.

Other then that the only advice that anyone can give is have a 20% transaction down payment. And even that wont help if you do not make at least 1800 a month gross.


And no leasing is probably not a viable option. When credit was easy leases were not available for people with limited poor credit, it has only gotten worse.

Message 4 of 9
daisyduke
Valued Contributor

Re: What scores or red flags do they look for?

I got a co signer with a terrible score ...and I leased...the co signers credit was in the 700's. ended up paying 1.9% through Ford. I hear as a rule, Ford is pretty lenient.

 

There is what is called a fico auto enhanced score, not available to the consumer...but if you have a couple of paid auto loans under your belt, this could help you. At least that is my understanding!

 

Why don't you try to goodwill the CA's for removal. The three Ca's removed from your report, would most likely help your score. Work on getting your credit cleaned up before you apply for a car loan..I think you will get a much better rate.

 

Leasing turned out to be a good strategy for me...here's why: i will show TWO paid auto loans on my credit report...I traded in my other car which still had a note on it....Ford paid it off....i leased a car from Ford...Come December it will appear that I have succesfully paid off two car loans, never late....I don't know the credit qualifications for a lease if it easier or not for credit...it also really depends on if you like turning in a car every three years and gettiing a new one.....Since I don't love my car, I'm happy to turn it in....and get something a little bit better this time around....

 

Currently I am looking at a new car and I know that they offer 1.9% for Tier 1 credit (i'm pretty sure that is 720 and above)...Interest rates will vary by credit score...

 

Another consideration is how old the car you want to get...For example, if you want to buy an older car, you will most likely pay a higher interest rate...because if you miss your payments and get it repoed, the car probably won't be worth that much....a newer car will be worth more money and if you buy a newer car, you will most likely get a better rate...It's really a catch 22 - newer cars have better rates, but older cars are more affordable....Daisy could be wrong, but i don't think I am about the rates...

 

Good luck.


Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
Goal Score: 700 + both EQ and TU


Take the FICO Fitness Challenge
Message 5 of 9
Anonymous
Not applicable

Re: What scores or red flags do they look for?

daisy is right about new cars having lower rates, at NFCU a new car is 3.9 a used is 5.9. Additionally new cars have factory incentives that extend low rates that most credit unions can't touch.
Message 6 of 9
Anonymous
Not applicable

Re: What scores or red flags do they look for?


@Anonymous wrote:
daisy is right about new cars having lower rates, at NFCU a new car is 3.9 a used is 5.9. Additionally new cars have factory incentives that extend low rates that most credit unions can't touch.

 

New cars do have lower interest rates. Thats one of the reasons they depreciate so much in the first year or so of ownership.

You still have to qualify though to get financing, and I simply do not think the OP has that much of a credit file to get a deal bought without a down payment.

 

He has not come back and filled in any more details so honestly we can give him all the advice we want, unless he lets us know some more we are not going to be able to help.

A trained monkey with both a 30 month old Target card (200 Limit) and Chase card (300 limit) will show a credit score of High 600 low 700- but they still are not going to have an easy road getting financed.

Message 7 of 9
EaglesFan2006
Established Contributor

Re: What scores or red flags do they look for?

Thanks for all your help so far...here are some more details

 

I take home about 1900 a month after everything, gross and all would be about 1300 every 2 weeks, taking home 950.

 

Rent is about 500, with utillities about 125, phone 70.  I also have a student loan that i pay 270 on right now, but i'm sure i'd be able to lower if needed

 

Been at my job for 4.5 years, just moved recently so 2 months at my current address

 

i'd venture to say that my scores i've seen fluctuate (ie i pulled EQ through here and saw 637 and a mortgage lender who just pulled my report to help me with credit pulled 628)...since then i've gotten some negs removed.  I think the mortgage pull had EX and TU lower than EQ, but again I have removed at least 2 bad items from each of them since those scores, which were pulled in April.

 

As for a car, i'd want something economical (accord, focus, whatever...nothing fancy and nothing overpriced)

 

new car or used, doesn't matter to me whatever i can get

 

no i wouldn't have a co-signer

 

downpayment is plausible depending on how much and when i get it.

 

 

 

i hope with this information you guys can help me in my situation...i would have to imagine i can get a car.  I know i don't make a ton of money but i don't think i fall in the extremely poor range...i've seen people far worse off than me with cars, so i don't know.  i'm just trying to get better educated.

 

as for removing my last couple of CA's, i'm trying...i havne't really gotten far with them yet, but i'm working on it.

 

 

Again, thanks for any more advice you can offer

Message 8 of 9
EaglesFan2006
Established Contributor

Re: What scores or red flags do they look for?

Is there any more advice someone can offer with the details i provided?  I want to be able to know where to look for places rather than apply over and over again
Message 9 of 9
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