Will I be approved for a car?

Anonymous · ‎10-26-2014

In Oct. 2011, my car was repo'd due to non payment. I lost my job and was unable to keep up with the payments. After saving for 6 months, I went out and purchased a 02 galant for $1400. The car is still in good shape but I don't know how long I have before it goes out.

Here's my dilemma. I want to buy a car in 6 to 7 months because:

1. I've only been on my new job for 2 months and I make $2400 a month after taxes

2. My last auto loan is showing as a charge off for 2k. I can settle with Chase for $500 but they wont allow a PFD.

3. I ended up selling my house as a deed in lieu of foreclosure in April 2014.

4. I have one item in collections for $436 but I am in the works of settling with them and paying it off.

The only credit I have now is $50k in students loans and a $500 Capital One card I opened in August 2014. My loans are in deferment and in 5 to 6 months, Im hoping to have a CLI on my cc. I currently have 3 inq. on my credit report and will not be adding anymore until I shop for a car.

I was recently denied for a Barlaycard (lack of revolving credit) and my TU score was 700. My Equifax score is 657 (myfico).

I would like to buy a car for around $15-17k. I plan on putting 5k down. Will I be approved in 6 months? With my past history and with a decent interest rate? Thanks!

Jerry45 · ‎10-26-2014

Wish I could help with advice, but good luck. There are many experts here on the matter

sports1965 · ‎10-26-2014

I don't think you will get approved and if you do it will be with a very very high % rate

Keep your old car until it dies ,save some money and buy a good used car down the road with cash

Anonymous · ‎10-27-2014

Its hard to say. Have you tried going to your local credit union and speaking to a loan officer? With a 560 score, 3 unpaid medical bills and making 18K a year, I was approved for an auto loan at 7.25%. its worth a shot at least checking a credit union out. They offer very low and competitive rates.

Focused10 · ‎10-27-2014

With your open debt and very limited credit history, I really think your chances are slim. You may get approved but with a double digit interest rate.

Just meet with someone (credit union, car dealershp) to have the conversation and be honest with them. However, don't let them run your credit because you don't need the inquiry right now. They may advise you on other options.

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