I have a credit score of 653 on 23rd of Oct-2006. Enough for a new car?
Positive terms: All bills on time. Use less than 25% of available credit. Just 1 visa card and two departmental cards. 3 are satisfactory.
Negative terms: 2 collection accounts($1624) and 8 applications.
All these applications are made from Oct-2005 to May 2006. last 5 months , no applications made.
Could you please give an opinion on how I should move ahead for car financing?
Thanks in advance, Maya
Answer:
Cars are considered a kind of "necessity" item. Now days almost anyone can get approved for a car regardless of score. You may have to suffer paying a higher interest rate but thats just the effect of the low score. In the case of a financial downfall, normaly the last thing you will let go is your house and your car. American citizens theoretically cannot "survive" without them. Taking that into consideration, a lot of lenders will take their risk on you assuming that the car is priority on the payment-making list.
I will say this..
-Make sure the finance manager is aware of your situation. He can use that info to send your credit application to the lender that will most likely approve. If you don't, he could send your app to 10 different knowing he'll get at least one.
-Also, it easier to get approved for a new car versus a used car. Funny, huh? New cars actually do not have values but rather MSRP. This figure is normally always close to your purchase price. Used cars have a depreciated book value. What lenders can lend and what dealerships can sell for is sometimes a huge difference. You may need money down on a used car.
yes, if the collections/charge offs isn't car related you can get a car. Try CarMax, you'll save money and their financing is transparent.
Is this your fico score if so good luck. I would call Citi auto financial and do it over the phone.
Sounds like you have a decent chance...hard to tell without actually seeing the credit report..you also can't be over 15% of your monthly income for a payment and you don't want your debt to income ratio to be more than about 45%.
Car financing is different from mortgage or personal loan financing. There are at least 15 credit scoring models for car financing as well as for mortgage financing. Most car manufacturers and dealerships use Experian. A credit score of 653 is good by any standards. Car dealerships are notorious to pull your credit alot. It is not like going to a mortgage broker and they run your credit 1time. The mortgage broker sends the credit to their lenders. Whereas, car dealers will pull your credit and just send your application to say 10 lenders until one lender will say they will fund the car purchase. Tell your dealer's finance manager that you want your credit ran one time only and stress it. If he tells you it isn't up to him but the lenders make the rules tell him to pound sand. Or if he says it won't hurt your score it tell him it will. Your best bet is to go into a dealership through a credit union or your local bank with a pre-approval this way you cut out the finance manager all together. It is like you are paying cash. They will give you many extras for free.
Your score is good enough but they might try to give you a high rate because ofyour past crdit history. I filed bankruptcy 5 years ago so I have been through this. My score is now at 683 and I go after loans for people with good credit. Try your local credit union for a rood rate. You might have to boost up your income a little bit because lenders will look at debt to income ratio. Email or IM me if you need help. awfdeez@yahoo.com
You'll have no problem getting a car loan-- but you might not get the really low interest rates/rebates that the dealership offers. You can get car loans with scores of 550.
Well, it depends on the lender. With your credit you may be able to get a car, but you may have a slightly higher rate.
you should be good. 8 inquires, isn't that bad and they are over 6 months so they shouldn't hurt you. with 2 collections, you will most likely have to pay a higher interest rate but you shouldn't have trouble finding financing for the car.
pay off the collection accounts. your interest rate is not going to be as low as you would have liked
YES
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