Trying to get financed

[black2002ls]

I had stellar credit up until summer 2008. Lost my job a couple of times, and some credit cards went into default. Now they are bouncing from collector to collector, I think there are 8 negative accounts showing. My score via credit karma is 602. I have one open CC I opened 3 months ago with a $300 balance. $1600 monthly income and 3 years on the job (though I start a new job on the 20th). That is the primary reason I am trying to get financed. I will be travelling a bit and need to replace my current vehicle.

 

Any insight?

[black2002ls]

Forgot to mention. I was turned down by Southwest Airlines FCU today. I have two paid autos through them, and no luck.

[BRBiz]

If the CU turned you down you will have better luck working with a dealer. Your income will be the min for some lenders and may not be enough for some others. Your current 3 year employment history would help but you will need to find something in the next few days other wise starting a new job will only hurt you more. You will get approved some place but with a high rate and probably no more then $10k to $12k.

[black2002ls]

Thats what I figured. I plan to put $2k down, though I have to sell my truck first. I may be better off waiting. My monthly income will go to $2900 with the new job.

 

My other option is to take over payments on my GF's car and she gets a new one. Though, that doesn't help my situation any

Edited May 3, 2013 by black2002ls

[BRBiz]

Thats what I figured. I plan to put $2k down, though I have to sell my truck first. I may be better off waiting. My monthly income will go to $2900 with the new job.

My other option is to take over payments on my GF's car and she gets a new one. Though, that doesn't help my situation any

You would probably have to wait at least a year after the new job..

[MarvBear]

You need to be able to prove at least 2K minimum monthly income. Once you can do that, then a dealership should be able to assist.

[black2002ls]

Thanks. Looks like I will be trying to nurse another year out of my truck.

[mk_378]

The $2000 Marv mentioned is gross income (before taxes), not take-home, if that helps any.

[black2002ls]

Unfortunately no! I work retail management for the time being in a small town. $1500/month is what it calculates out to in a perfect world (40 hrs/wk), unfortunately we are in the slow season and I only average 35 hrs/wk

[MarvBear]

There are some lenders who will take the risk on less than 2000.00 monthly gross income. They are scarce and price according to risk.

[Mo Munny Mo Problems]

thats a shame too..

 

Dealer: "Price is $300/mo for this nice family car that gets good mileage."

 

Poor Sap: "But kind sir, my income is a little low."

 

Dealer: "Oh well in that case: We can still do the deal but in light of your resources, we will be raising the price to $330/mo."

 

 

 

I just think it is funny that in our society, the less you can afford, the more it costs. I mean..if anything...the more fortunate should help cushion the less fortunate.

 

But everyone DOES have to make a buck and still pay the bills/employess etc. But it still.seems kinda wrong to me.

 

In a perfect world and a more enlightened society wouldnt the more fortunate have the grace to do such a thing?

 

 

 

off topic sorry lol

[BRBiz]

Well your paying for risk.. The less income the higher the risk... If something in life happens financially you have less wiggle room to work with when your income is lower.

[mk_378]

Avoid getting into the trap of thinking the payment per month is the "price of the car."

 

Like 721 said, the cost to borrow money goes up for those who are a higher risk of not being able to pay it all back. The lender wants to get more money sooner because there may not be any later.

[quepsi13]

My credit scores for Equifax and Experian are 700+, my TransU is 650...I have two CCs Discover and Capitol One both in good standing (less than 30% util)..the only baddie I have on my credit is a tax lien which I am working to resolve, annual income is $50k...how hard will it be to get a car loan with a decent intrest rate.

[BRBiz]

My credit scores for Equifax and Experian are 700+, my TransU is 650...I have two CCs Discover and Capitol One both in good standing (less than 30% util)..the only baddie I have on my credit is a tax lien which I am working to resolve, annual income is $50k...how hard will it be to get a car loan with a decent intrest rate.

What do you consider decent? How are your past auto loans? Do you belong to a credit union?

[Glacier]

My credit scores for Equifax and Experian are 700+, my TransU is 650...I have two CCs Discover and Capitol One both in good standing (less than 30% util)..the only baddie I have on my credit is a tax lien which I am working to resolve, annual income is $50k...how hard will it be to get a car loan with a decent intrest rate.

 

You might want to start your own thread with Marv's credit application.

 

With so many factors going into what your interest rate ultimately will be, the professionals here like Marv, will not predict interest. But as Brndnh721 asked, what do you consider decent? Everyone has their own opinions.

[BRBiz]

Keep in mind your auto enhanced fico will de different then your other fico's.. And that weighs heavily on past auto loans you have had and will affect your the rate you get.

[black2002ls]

A little update on this. I have been working on improving my credit. I now have 3 open, active trade lines. One is an AU account, the other two are CC accounts in my name. My fico is now a 660+. Experian and Equifax are both above 650, TU is lagging behind at 615. I have gotten one large collection account removed from my credit and two smaller ones. I have been at my new job for 6 months (will anyone hang paper having 6 almost 7 months at my current job and 3 years at my previous employer?) and my income is substantially more than it was before. Gross monthly is now $3650/month base salary. I am wanting to get financed on a vehicle that is <$18000 and <80,000 miles.

[black2002ls]

I figured I would put this here, If I should start a new thread for it, please let me know

 

Credit Application:

Your Age? 30

Your Equifax Credit Score? 662
Your Experian Credit Score? 644
Your TransUnion Credit Score? 616

How many years have you been on file with Equifax? 12
How many years have you been on file with Experian? 12

How many years have you been on file with Transunion? 12

YOUR PREVIOUS AUTOMOTIVE CREDIT HISTORY

Do you have an open auto loan? no
Will this open auto loan be a trade-in? no
How many late pays within the last 12 months on the currently open loan? n/a
How many late pays within the last 13-24 months on the currently open loan? n/a
Your current open auto loan is financed with? n/a
Your current open auto loan payment is? n/a
Estimated amount you may be upside down in this vehicle? n/a
Rate your payment history on this open auto loan from 1-10 (1=poor:10=Best) n/a


YOUR REVOLVING CREDIT HISTORY

Total number of revolving account(s) you have? 3
Total percentage utilized overall? 35%
How many of your revolving accounts are store cards? 0
How many of your revolving accounts are major credit cards? (i.e. Amex, MC, Visa) 3
How many of your revolving accounts are known subprime credit cards (i.e. Aspire, 1st Premier) 2? (Cap1, Barclays)

YOUR PERSONAL INFORMATION

How long at your current residence? 2.5 Yrs
Do you Rent or have a Mortgage, or Live w/Relative or Other? Rent
Your Monthly Rent or Mortgage payment? $400
How long have you held your current job? 6 months
Your total provable monthly gross income is? 3400
Your provable monthly gross income is provable via what method? (i.e. computerized paycheck stub, or tax return) check stub
Is there additional monthly income? What amount monthly? yes, 250
Describe the source. mileage reimbursement
Is the additional monthly income provable? yes
Spousal income is not applicable.

YOUR DOWNPAYMENT
Please tell me your exact down payment in cash? (rebates and trade equity are not considered, please input a dollar value only.) $1500
Does any credit repository contain any Public Record? no
If yes, please very briefly describe.

Does any credit repository contain any Collection Account(s)? yes
If yes, please very briefly describe. 3 collection accounts showing on each report

Please rate your overall creditworthiness on a scale of 1-10 (1=poor, 10= best)8
Please rate your Installment credit history on a scale of 1-10 (1=poor, 10=best)8
Please rate your Revolving credit history on a scale of 1-10 (1=poor, 10=best)5

New or Used vehicle you are considering: Please very briefly describe. Used GM truck. <$18,000, <80,000 miles

Edited December 11, 2013 by black2002ls

[Labyrinthine]

Congrats on the new job, btw!

[MarvBear]

will anyone hang paper

 

 

 

wherefrom did this terminology come?

[black2002ls]

 

will anyone hang paper

 

 

wherefrom did this terminology come?

Sorry, that was a slang term they usef when I sold cars for a while after college. Part of me feels that the increase in income will help me get financed, then on the other hand, I have only been at the new job 7 months and there are still charge offs and collection accounts on all three reports I have 3 paid auto loans, however two of them have some 30 day lates from wheb I got in financial trouble in 08/09. Though they never went more than 30 days and not reposessed. I would hate to get hit with a bunch of inquiries now and be in better shape 6-8 months down the road

[black2002ls]

Congrats on the new job, btw!

Thank you! It has been a blessing I have been there almost 7 months and have already received a promotion and 10% raise

[MarvBear]

I think you are hangable.

[black2002ls]

Do you think I might be limited on term? I am wondering if I might be able to buy new and stretch the term out to keep the payment low. I should start getting monthly bonuses in the next 3-4 months and plan to pay it down/off in a short amount of time