Hi all... Right now my scores are around 560 with all three CRAs, currently trying to rebuild. What hurts me is short credit history, one derog (1.5 year old AMEX that was fully paid last year), several 30-60 day lates, and overall lack of credit history. No BKs, no judgements, repos, etc.. Been at the same address for 2 years, making decent income. Total debt I have is very low, at $912 (balance on Macy Card that I am an AU of, its being paid off). Also have Capital One CC with $500 limit, unsecured. That was the background. Now I have a few thousand saved up, and am looking to use it to build my credit history. Whats better, using it to build a line of credit at a union, or I also would like to buy a pickup, so I am thinking of putting down 4000 or so, borrowing about 6000-7000, and then paying it off on time for over maybe 18 months?? I dont mind high interest, if I can get a car loan at all! I live in New Jersey by the way, if anyone can recommend either a good CU, or dealer that will work with rated poor credit people like me. I know about PeopleFirst and Household, and since PeopleFirst is connected with CapOne, I HAVE been paying my CapOne on time for over a year.. Though that may not matter cause my scores stink. Will it help? From what I read, 560 is too low to even get their Custom Finance.. I dont wanna get rejected and end up with worse credit. Do all credit unions report to CRAs when you borrow against the line of credit? Maybe a dumb question but please help, Ive done a lot of looking around and searching, but havent found answers to this specific issue. Thanks all h.a.
You should be able to get a good interest rate with 4,000 down on a 11,000 vehicle. Use that Huge downpayment as leverage for a Good % rate. With that much down They see you as a good risk. And They know they wont lose any money, if they have to repo the car and sell it.
Thanks for that input, yeah you're right, I was thinking that a larger DP would help offset the risks and make me more attractive as a borrower.. Any other suggestions? Would I be dreaming about getting a car loan in my situation with mid 500s scores (as shown by my PrivacyGuard report)? I have NO prior car loan history, either.. Rather than take my chances at a dealer, would going to a CU armed with my credit reports, and proof of income statement, utilities / etc and asking for a 5000-6000 loan be better? I don't wanna get rejected when the time comes to try and secure the loan. Those who have been in this situation before please feel free to advise! Thanx! h.a.
Others have reported that Peoplefirst is difficult to get even with great credit... Cap1 does have its own auto loan division separate from Peoplefirst which you might try. Other online apps I would go with-- Household, roadloans, eloan. As long as you apply to all of these in a close time frame, these inquiries should be grouped together and counted as only one inquiry against your score since you are shopping around for an auto loan (I don't know if this is really true or not).
honest, sorry seems their was a computer glitch when I responded. This is what I wanted to say: You can join Pentagon Federal Credit Union which reports mortgages, credit cards, loans, etc too the 3 CRA's. The website is http://www.penfed.org and you can join as a member by signing up for the National Military Family Association through a one time fee of $25 plus minimum $5 initial deposit in share account(savings). https://loanapps.penfed.org/membapp/nmfa/mbapnmfa.htm I think for a checking acct, they do a credit check. Also, PFCU offers secured credit card through the amount you place in the shared account.
Thanx for the help people. Other suggestions on what to do? Here's what I've been thinking: Prepare (1) Statement of Income, last year's tax return, etc (2) Proof I've lived at same place for 2 years (3) Proof I've been employed for over 18 months (4) Bring copy of EQ, TU, and EXP reports (5) Get the ~$4000 or so DP together Then go to a CU and (1) Tell them they can pull my report but I already have it and wish to talk about it with them to explain my low scores (560 all around, result of 1 derog from stupid college spending- everything's paid) (2) Show proof above, explain my work situation etc and that this is the first car loan I am getting so I need a break 'cause everyone has a first time for these type of loans (3) Mention I am paying DP on almost half the car (looking to borrow $5000-6000 only) Do you think this will work people? Anyone had luck with showing up with your report and then talking it out, even with mid 500s scores and no previous car loan? h.a.
You're Looking for a USED car, right? Dealers will have their own network of lenders who will specialize in "challenged" credit. Trust them to find a deal. If the DEALER thinks it's worth pursuing for a loan, they'll find a lender for you. They will have credit union lenders to run your application through, so you still might get into a credit union with a reasonable rate.
