denied everywhere...HELP!!

[Anonymous]

Help! My husband and I want an auto loan for $30,000.  However, we have had some baddies on our CR.  He has a car repo/redeemed on his credit from one year ago, but this loan was paid off in April, with no lates after the repo/redempt.   I have some chargeoffs from 5-6 years ago.  We only have one new credit card to help us establish credit with a limit of $250.  My revolving debt that started this year are student loans, with some lates.  My credit is about 505, because I have no new credit due to being traumatized from my college years.  His credit is about 515.  He also does not have that much of new credit history.  Our monthly gross income is $10,000.  We have a good DTI ratio.  We would be able to afford a monthly car payment of about $700.

Because our credit is not great, we've come to accept that we would have to pay a really high interest rate for a car loan, which is fine since we need to establish credit anyway.  We could always refi in a year or so. 

We have applied online to many banks, and have been declined. We want a car from Acura, applied at the dealership, but they stated that we were declined from four of their banks.  I know it must be from the repo/redemp.  eLoans sent us an email saying we were approved from a Nissan dealership, but we weren't looking at any Nissan cars.  Does anyone know of a bank that might approve us for $30k with our credit scores?  What about bad credit auto loans?  Is it better to apply joint or individual?  Any information would be helpful at this time. 

[Schoolbuskid]

Do you have to buy a car right away? I would assume you have a pretty nice vehicle now! I would try and wait to get some baddies off my credit report first, and establish some more revolving trade lines! I suggest getting the Bank of America Secured Card. It allows you to deposit 300-10,000 for you to determine your credit line!

You should see a nice bump from that! Uh...as far as going with a lender, try Drive Financial...Roadloans...Capital One....uh...! I cant really think of any other places right now!

Best interest is to get scores up, meaning better interest rate! Good Luck!

[Anonymous]

Thanks Schoolbus kid.  We are planning to buy a car soon, since my husband sold his car and we are stuck with one car. 

Do you or anyone else know if Drive Financial takes applicants only from the dealerships?  I went on their websites but could not find anywhere to apply.

[atlastontheroad]

Needing a second car doesn't mean that a "new" car is the best option.  While you're working on credit repair and rebuilding, it might make more sense to investigate "new" used cars you can swing with cash that don't leave you instantaneously upside down in a high-dollar, high interest loan.

Just my conservative opinion.  And yes, I just bought a 2 year old car with 25k on it instead of a "new" car.  It's about priorities. 

Best of luck,

atlast....

[MattH]

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@Anonymous wrote:

Thanks Schoolbus kid. We are planning to buy a car soon, since my husband sold his car and we are stuck with one car.

Do you or anyone else know if Drive Financial takes applicants only from the dealerships? I went on their websites but could not find anywhere to apply.

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I looked around their website, and it is very clear that they only work through dealers.

I also looked over the documentation required: they actually require more documentation than my wife and I supplied when we got our mortgage in 2002! I don't recall ever having to supply nearly so much documentation for any car I've ever bought.

Incidentally, I strongly agree with the poster who advised getting a used car. New cars are an expensive luxury for those in good financial situations, and a huge trap for everybody else. I could buy a new car tomorrow if I chose, which I won't: the 2000 Camry that I bought in 2004 still runs well, maybe in 2009 I'll get a 2005 Camry. I certainly have no intention of taking the huge depreciation hit from being the first owner of a car.

Message Edited by MattH on 06-23-2008 07:44 PM

[nathan]

Matth is absolutely right. It doesn't really make any financial sense to buy a new car when you can get a used one with basically the same features. If you are paying cash for a new car, that may be okay if you can afford it. It is amazing how the difference between an 07 and an 08  can be as much as 10k.