I am looking to purchase a new car in the next month. Experian Clean, 14 mo. history, no bads, 3 inquire, all Citi (2 this mo, 1 from 3 mo ago) 682 score Equifax Clean, 9 year history, but gap of 8 years no activity, 698 score TU, 2 unpaid Charge off, 3 good accounts 14 mo no late, score unknown On all 3, have: Charge 1200/1K high/0 bal CC 1600/700 14 mo old CC 1600/500 12 mo old CC 6500/0 new card CC 5000/0 new card (these last 2 Citi, will try to combine before they show up on report) I have a 50K salary, 4.5 yrs at residence, 5 yrs at job. While not prime, I don't think I'm in too bad of shape. Under my circumstances, who would you reccomend? I'm going to see my Credit Union first, but wanted some "on-line" options as well for the following: 24 to 26 K loan for a Toyota, I may put down as much as 10 to 15%, but may consider 100% if available to keep my monthly commitment a little lower, and make larger payments. Anyone only pull Experian for Auto loan? Or will they pull all 3? Would like check issued that can be used at any dealer I chose. I know some have had success with Household Bank. How are they for someone like me, with not too bad, but not too good credit either? How about E-loan? My fear is that I may qualify for a good rate loan if they pull only Ex and Eq, but if they pull TU, I could be looking at an interest rate I don't want. I know some have also had good luck with dealer financing or manufacturer backed financing, but I am dead set on Toyota, and want to enter the dealership with check in hand. Any advice would be greatly appreciated! Beth
Hi Beth, welcome to the board. Most banks, as well as car dealerships, only pull one credit bureau to check your report for financing. I would definitely try your local credit union first. In my opinion, they have the lowest interest rates and best financing plans. Also, you have a lot more leverage car shopping because you're already preapproved (also saves you an inquiry from the auto dealer). Good luck. Dani
I agree. If nothing else, having a pre-approval at a good rate will give your bargaining power if you finance through a dealer. If they come back at 9% and you've already got 8% locked up, tell them they've got to beat it. Just and FYI, go to www.edmunds.com and see who is running specials on APR because you might just qualify. I got 4.9%/60months through Ford a couple of years ago with a couple of blemishes on my report.
What the car lenders will want most, is a previous car purchase or large installment (house) loan. Without that, you might be forced into a higher rate plan, or first time car buyers program. I was told that excellent credit is 700+ range, and superb (the teaser rates) are usually reserved for 750+ score ranges. Remember, a car dealer is going to stick it to you in several ways: 1. Price, 2. Interest, 3. Misc fees they will make up. Vw for instance, does marketing fees, etc for $150-250 per sale. Many car dealers, like VW, will accept a credit card down payment, ask first. Some don't. This would allow you to increase your down payment, which can lower your rate into the next tier. It may seem stupid to do that, but if you know how to use it to your advantage, and your rates are high, it will pay off in the long run. with the economy in turmoil right now, folks are going to work hard to please you. Just make sure you shop at least 2-3 different places. Remember when one dealer approves you for a loan, you can take that loan (BY LAW) to the next dealer, and use it. What i did to help my buddy, was play them. He got approved (first time car buyer), then we said, well maybe we're going to take this loan to Y Dealer. Whom we contacted and would give us $500 less than the best rate we got from Dealer X. You can figure the rest out yourself, the dealer X was mad, but took his price down, because he knew, we had HIM by the balls, and could walk right over to DEALER Y and have the same car, instantly..
Toyota is advertising a very good rate and the ad states you must have a 680 FICO score to qualify so you should be ok. I don't know who they pull. They make the best car out there in that price range. They have great deals on the 2001 Camrys and the 2002 Camrys look great. I got my financing lined up at my credit union, went in with it approved. Then, the dealer beat the rate. What was nice was that we negotiated the car price, then went to financing. When I got my Honda last year, I negotiated price with the dealer over the web site. I arranged my financing with Bank of America. When I went in, Honda beat the BOA rate with their own BOA deal. I saved a lot. Just remember, negotiate the car price, then the financing.
I had very good luck with E-Loan (at least as far as the process goes). My roommate used them as well and she rec'd a fairly good rate, 4.5 pts. lower than my 11.9. You could always contact the dealer and ask which bureau the finance company pulls? Good luck.
