Will I get approved for a loan?

gordoninvenice · ‎10-25-2012

I am a college studen who's just barely starting out in the credit business and trying to purchase a vehicle. As of 9/25/12 I have a score of 680, never missed a payment and no balances due. I have had credit as of November 5th 2011. I'm trying to purchase a used vehicle priced at 23,000 and will put 2,000 down. Will i get approved for a loan even if i don't have a cosigner now? Or should I wait till after November 5th so I have at least a years worth of history??

guydiver · ‎10-25-2012

@gordoninvenice wrote:
I am a college studen who's just barely starting out in the credit business and trying to purchase a vehicle. As of 9/25/12 I have a score of 680, never missed a payment and no balances due. I have had credit as of November 5th 2011. I'm trying to purchase a used vehicle priced at 23,000 and will put 2,000 down. Will i get approved for a loan even if i don't have a cosigner now? Or should I wait till after November 5th so I have at least a years worth of history??

Hi, and welcome to the forums! First, where did you get your credit score, and from which credit bureau? You won't get any help with your Auto Industry Option scores due to no vehicle financing history, which again doesn't help with your thin credit file. I would say get the full year under your belt first. What about income? Length of employment? What is your DTI(debt to income)? That is also very important. With your thin credit file, your downpayment will probably weigh heavily on an approval, and even then you might still need a co-signer. I would say 10% minimal, but probably more depending upon who does the financing. You will probably have to suffer with a higher interest rate to start out. Post this additional info. and you will get a better idea from the forum members on where you stand. Again, welcome. Lots of people on here that will gladly steer you in the right direction.

Anonymous · ‎10-25-2012

Good luck. It is going to be tough to find a lender.

gordoninvenice · ‎10-25-2012

I got my 680 through Equifax, i'm a full time student in college but i used work full time making about $1,600 a month. Now i'm just working part time making roughly $1,1000. I've worked a job for about 4.5 years, then 8 months following another 8 months. I am completely out of debt as well

guydiver · ‎10-26-2012

@gordoninvenice wrote:
I got my 680 through Equifax, i'm a full time student in college but i used work full time making about $1,600 a month. Now i'm just working part time making roughly $1,1000. I've worked a job for about 4.5 years, then 8 months following another 8 months. I am completely out of debt as well

Your credit score is most likely NOT a Fico score. Equifax sells their own version of a credit score, but they tell you(read the fine print)that it is not the score that your lender will use. Your lender can pull one or all three of your credit scores, and in your limited credit history case, they probably would pull all three. I'm not going out very far on a limb to say you are most likely going to need a co-signer. They will use your current length of employment history, your current income, and your credit report(again most likely the auto industry option model Fico). Basically you have three strikes and will be difficult to finance. Get your full year of history, and the most money you can to put down. Have a co-signer lined up. Look into a credit union, or find a co-signer that is already a member. Good luck.