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hilo

Need advice for used car financing

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Hello,

 

I need a car to go to work. My credit with Experian is 718. I can get the others.

I have $4000 for a down payment.

I have high d/i ratio

I won't take out coverage.

With Carvana I can get a rate around 5% on 5000 loan for a car that is near a price of $8500. (includes registration and state costs) with a subprime lender which might affect future credit. Re: "GO Financial is a sub-prime lender and that will not look good on your credit history."

 

My questions are:

1. which lenders will NOT check my bank statements or ask for tax returns?

2. which lenders do you reccommend checking rates

3. Do I get rates all in the same day? ( since they will be hard pulls?)

4. Should I not bother with USAA since they require "Excellent" credit? - I do have a 20 year history with them.

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All the lenders I know who collateralize the automobile will require coverage to protect their interest. You might have to rethink your strategy.

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How many derogs on file with that 718 score?

Mostly high debt ratios, age of accounts etc. might have one $200 charge off still but that was supposed to fall off. I just tried to get a free report for reason of denial but Experian site is wonky.

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You should easily IMO be able to get an auto loan. But you will have to provide proof of full coverage. If you don't want to do that, they you might qualify for a signature loan, but I think the APR on a signature loan would be markedly higher.

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You should easily IMO be able to get an auto loan. But you will have to provide proof of full coverage. If you don't want to do that, they you might qualify for a signature loan, but I think the APR on a signature loan would be markedly higher.

It seemed like Carvana was going to approve me without full coverage. It might be that after the hard pull they would require it. Also when , if at all do they ask for bank statements or tax returns?

Edited by hilo

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why is a sub prime option your first choice?

It's not, necessarily.

I just did some research and found out that that particular service uses subprime. So I thought I'd mention it, in case anyone had info to add about it.

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Just a thought, out of curiousity, how would you license and register the vehicle with proof of insurance of at least the minimum required by your state of residence?

 

If you are only going to finance $5,000.00 over a short term, what rate would you consider acceptable, and what difference in total payback would it make?

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Just a thought, out of curiousity, how would you license and register the vehicle with proof of insurance of at least the minimum required by your state of residence?

 

If you are only going to finance $5,000.00 over a short term, what rate would you consider acceptable, and what difference in total payback would it make?

I'm talking about extra coverage for a warranty. Not insurance

I have insurance.

 

Any better rate I can get is help in my situation.

Edited by hilo

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If anyone tries to tell you that you will have to buy a warranty to qualify for a loan, they are lying. It is illegal to require or suggest that.

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Ok. that's why I asked.

 

Then what you worried about?

Being asked for tax returns or bank statements.

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Well if you were truthful in your application, you shouldn't worry.

 

But if you are actually approved then I believe the lender would have stipulated what they require to finalize the approval, i.e. POI POR, copy of DL etc.

 

So you should be allright.

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Well if you were truthful in your application, you shouldn't worry.

 

But if you are actually approved then I believe the lender would have stipulated what they require to finalize the approval, i.e. POI POR, copy of DL etc.

 

So you should be allright.

The reason I worry is because my mortgage payment will be considered too high compared to income. I pay it by having renters in the house. A car will greatly improve my ability to get a job for the income that I need. I was unemployed and went to school this year to improve my situation. My past two tax returns are low. They did not used to be but those prior to two years won't matter.

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But you said you are already approved with this Go Financial. The approving document always contains any stips the lender may make. If you are approved and they haven't asked in the approving document, then you are gonna get white hair like me by worrying.

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But you said you are already approved with this Go Financial. The approving document always contains any stips the lender may make. If you are approved and they haven't asked in the approving document, then you are gonna get white hair like me by worrying.

Sorry for the misunderstanding, I have a pre approval , re: "It seemed like Carvana was going to approve me". I called and asked who it was with and then researched that it is a subprime lender. (who will also be changing names soon )

 

Thanks. I'll consider all of your advice! And report back what comes about the real hard pull .

Edited by hilo

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I honestly think you should be good. RE: your income, since you have people who help subsidize your mortgage payment, then IMO you should list the proper amount on your actual application for credit.

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How much does a hard pull affect the score? My Experian score already went down 11 points from a soft pull?

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How much does a hard pull affect the score? My Experian score already went down 11 points from a soft pull?

As Marv said a soft pull has zero effect on your credit. Something else had to change on your report.

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hilo:

 

a soft pull does absolutely not have any impact on your score.

 

 

 

How much does a hard pull affect the score? My Experian score already went down 11 points from a soft pull?

As Marv said a soft pull has zero effect on your credit. Something else had to change on your report.

 

^^^^^^^^

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Why don't you take the $4,000 you have saved and buy a $4,000 car?

 

Then take whatever monthly payment amount have been required on a $5,000 loan at a high interest rate and set that aside for future repairs.

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