A few months ago, I got hit with the whole sub-prime mortgage thing and my mortgage rates shot up. I wasn%26#039;t able to afford it so I had to really strech and make my payments at the expense of some other bills (credit cards, cell phone, etc). The good news is that I was able to sell my place in a couple of months without foreclosing or anything (paid in full). But now, the month or so after the sale, I%26#039;m getting credit limit reductions from credit cards since I missed those payments and one even got closed (it was just a store card but still looks bad, I know).
Now, I told you that story to ask you this - I need a car and want to buy something nice. Since I%26#039;m pretty sure I can%26#039;t afford a nice NEW car, I%26#039;ll be getting a used one for about $15K. What are my chances with a loan from the bank with all the stuff I mentioned earlier? All that stuff happened only a month or two ago. My income is good and I have gotten back on track with finances. My credit score is between 600 - 618.
Can I get a car loan with bad credit?
This is based on information from SPIFIMAN1:
Auto loans are based on the following factors:
1. LTV (loan to value).
2. Term of loan.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment.
6. Time at job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income ratio.
What auto lenders look for is as follows;
1. 3-5 years in the bureau depending on the lender.
2. 4-open trade lines paid as agreed.
3. 1-installment loan paid 12-times for at least $150.00 a month.
4. 2-years on the job and at residence.
5. 10% or $1,000.00 down payment.
6. Monthly income of at least $1,800.00.
7. Vehicle not over 5-years old with less then 50,000 miles.
8. Monthly payment not to exceed 20% of monthly income.
9. Total debt to income not to exceed 45%.
10. LTV between 115% and 145%.
For prime rates you need a FICO score of 680 or above.
I am sure you will be able to get a car loan (with a somewhat high interest rate), but I would recommend saving money for a car with your own cash. That way you won%26#039;t have to worry about a car payment for the next 4-5 years, and the interest that comes along with it.
Can I get a car loan with bad credit?
Dont be so sure you cannot get a new car....
dealers are trying to give cars away....try that route first since all they can say is no
Before you go, file a statement with the credit agencies
on that statement you can say what happened (a one page summary)
that statement will go out with everyone who pulls your credit.
This is known as an extenuating (sp) circumstance and it is one that is not likely to happen again so some of the inhouse financing might be able to help since you have decent income.
Try new (if you want new) before you SETTLE for used...
My first car I needed a cosigner AFTER I bought a house on my own.....
I made 28k a year and just could not afford it on paper
well
five years later and a car wreck later
I needed a second car but no cosigner was needed this time because my credit was still not perfect but I had a great record with THEM.
I got a corrolla by the way and it was about 15k (basic model) with a crappy, donated by my brother, trade
Can I get a car loan with bad credit?
There is no doubt that if all your loans are now paid off, you can qualify for a car loan, particularly since you have a good income. However, you may find that the interest rate is rather high, because of the risk banks perceive. Based on what you describe you are not as high a risk as your credit score implies, but that does not mean much to banks now that they have been burned with sub prime loans.
You may want to decide to buy a cheaper used car, maybe in the $5-6,000 range, and pay it off as quickly as possible, with all payments made on time, which should improve your credit rating so that you can later qualify for a better interest rate on a better car.
Can I get a car loan with bad credit?
yes its possible for you to get a carloan with this credit .don%26#039;t worry its better for you to try for an online loan.bcoz lot of banks in onlie lend loan even you have a very poor credti.i think that the below website will help you to find right solution.
Can I get a car loan with bad credit?
Congratulations on selling your house. I think you can get a car loan though you might not get the best rate. Your plan to get a decent used car is exactly the right thing to do. Why stretch yourself trying to finance a new one that loses 40% of its value in the first two years? Good luck.
Can I get a car loan with bad credit?
Jeremy beat me to this one but at least he gave me credit for the information.
Can I get a car loan with bad credit?
Don%26#039;t feel alone, a good majority of the population is in your shoes. And there are definately credit/finance options out there for you. You should start with your bank first or local credit union, but if that doesn%26#039;t pan out there is alot of private funding available usually at ahigher rate. For more info check out:
http://www.credit-card-loans-debt.com
Can I get a car loan with bad credit?
I know you can find one. There are creditors/banks now that give loans to people with bad credit.
Check this one: http://www.badcreditresources.com/bad-cr...
It has a list of banks/private lenders that gives car loans to people with bad credit.
Can I get a car loan with bad credit?
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