I am in the works of purchasing a used car from a Hyundai dealership within the week. I have one problem dealing with the financing of the car. I recently tried to apply for an auto loan from BOA on my own (without a cosigner) but was declined most likely due to my low annual income. I have a decent credit score of about 673 (experian)/717 (FICO 8). My question is, if I get a cosigner who has a lower credit score than me, but makes close to six figures, will my loan (about $8700) get approved. Trying my best to avoid financing through the dealership of the higher interest rates.
Any advice is much appreciated. Thanks in advance.
If you don't mind me asking, what is the "low income" you stated? By this I mean, what is your income? Also, what is the co-signer's scores? If you say had low scores, are you saying it is in the 500's? What is it?
Remember, to get better respnses, you want to provide as much info. as you can.
I am a college student in which I am working a part-time job that estiamtes to around ~900 per/month. My co-signer doesn't know their exact score but would say probably in the 500's ballpark or so.
Thanks for the info. Yes, that is indeed not alot of income but for the cost of car you are getting, you should be able to find car. I am not a big fan of having co-signers and if his scores are in the 500s, you will likely encounter some problems despite his high income.
Have you tried a credit union?
Thats what I feared as well. I have looked into joining a local credit union which has a college student auto loan program. Still looking into the details of it but in general the rate is a fixed rate of 8% w/ $20.28 payment per/$1000. I included a linnk with the rates if my description wasn't clearly understood. https://www.providentcu.org/index.asp?i=autoRates
Did you read the terms on the college loan?
Which is almost the same thing IMO.
CU's certainly have better rates than most places. Have you tried the Capital One auto loan prequal? It is only a soft inquiry so all it will cost you is a couple of minutes of time. It is more curiousity to see if they could do something for you and what you are offered(if anything).