JJ asked:
Right now my Fico score is at 568. On my credit report the reasons stated for my low score is because of a severely late payment 8 months ago from a student loan. The reason for this is that for some reason the lender didn’t update my account as being deferred and when I found out about it, I paid it up to current and have made all other payments on time (before and after this with them). I tried contacting them about this but they are not willing to help with the late payment reporting. I also have a large amount of inquires because I’ve been applied for loans with the “bad credit” dealerships only to be told I can get a used $10000 car for like $500 a month payments (not a very good deal in my eyes because most of the vehicles have 100k miles). Now with what fico has released as the scoring for late payments my interpretation of that would be that my score would be in the 650′s if my student loan had reported correctly. If I were to go to a bank or credit union and explained my situation with that would it help me get into a vehicle or just hurt me with another inquiry? I do have some old collections from a divorce that I have been paying off and having them removed that were from about 4-5 years ago, but now I need a new vehicle and all my excess cash went to old bills so I am limited on a down payment. Currently I have 2 credit cards with a total of $500, 20% utilized just to keep a good reporting. I have been at my employer and address for 18 months and my AGI approx 40k.
Right now my Fico score is at 568. On my credit report the reasons stated for my low score is because of a severely late payment 8 months ago from a student loan. The reason for this is that for some reason the lender didn’t update my account as being deferred and when I found out about it, I paid it up to current and have made all other payments on time (before and after this with them). I tried contacting them about this but they are not willing to help with the late payment reporting. I also have a large amount of inquires because I’ve been applied for loans with the “bad credit” dealerships only to be told I can get a used $10000 car for like $500 a month payments (not a very good deal in my eyes because most of the vehicles have 100k miles). Now with what fico has released as the scoring for late payments my interpretation of that would be that my score would be in the 650′s if my student loan had reported correctly. If I were to go to a bank or credit union and explained my situation with that would it help me get into a vehicle or just hurt me with another inquiry? I do have some old collections from a divorce that I have been paying off and having them removed that were from about 4-5 years ago, but now I need a new vehicle and all my excess cash went to old bills so I am limited on a down payment. Currently I have 2 credit cards with a total of $500, 20% utilized just to keep a good reporting. I have been at my employer and address for 18 months and my AGI approx 40k.
I am hoping to get some professional opinions whether it would be possible to get an auto loan through a CU or Bank. Would going to a large dealership be the best bet? Any guess on the probability to get a loan would be great.
I understand I would have a higher interest rate but I am willing to accept that. I am just trying to get into a new or slightly used vehicle and bring my score up by April 2010 to purchase a home.
People come on here for answers, not snide comments. Also, I’m asking for professional experience or people who have been able to do so in similar situations. Please, if you do not know then don’t post just to get a point.
Brent
Ron
Without reading your long spiel, you won’t be getting a loan with that score it’s way sub prime plus the inquiries….you’re no go. What you can do is getting a co-signer and try that way. Good luck!
Comment by Anjell — August 5, 2010 @ 12:04 pm
Alex
I wouldn’t know…..I am still trying to figure out why a bank offered me a APR of 25% on a vehicle that cost $12,999 for 60 monhts and my credit score is 640. I think most of these banks and financing companies are out to rip certain people, with certain credit scores, out of money. I am soooooooo very happy I did not accept that offer. It was indeed a “shark loan.”
Comment by ZaylaMay80 — August 7, 2010 @ 12:45 am
Michelle
Unfortunately your credit score is in the “borderline terrible” range. You might find financing but it’s going to be at a very high rate. Start with your own bank first and then shop around locally.
Your student loan appears to have been reported correctly. If you waited until you were behind (or worse, in default) before you pursued the deferral then it will stand. Having collections on your record doesn’t help either.
The repeat pulls from the high-rate auto lots will only count as a single inquiry if they were over a span of 15 to 30 days or so. Even if you take 2 or 3 hits, each is only a couple of points so it won’t materially affect your score.
In all honesty, I don’t see your score improving sufficiently in the next 5 months to qualify for a home mortgage. You really need your score on the sunny side of 650 (and the sunnier the better these days) and that’s not going to happen in 5 months. You may qualify for an FHA loan (since it does not depend upon your credit score) but you do need to meet basic creditworthiness guidelines and strict loan-to-value ratios for qualification.
Comment by Bostonian In MO — August 7, 2010 @ 7:47 am
Zachary
Recenlty my friend got Auto loan of 25000$ for 10 years on 3% which should be paid annually my friend doesnt have good credit his credit score is below 500 but still he got loan.
I asked him how you got ?
He told me while i was searching on internet for Auto loan with Bad credit he found a site which contains about 8 links for bad credit so i checked all of them one by one .
go to
Dixiloan.com
Then Go to “Auto Loan”
Note each link contain different interest rates and repayment period.
Take Care
Bye!
Comment by Steven — August 9, 2010 @ 11:31 pm