I have a student loan debt in the amount of $19,000. The payments are only $81 a month by law since I am in an "income contingent program" that allows me to make payments I can afford. This means that there is negative amortization of the debt. In other words, it gets bigger because my minimum payments don't pay off the interest each month. Well, I am making big payments when I can but I really need a car. I have no other debt at all, just this one. I make 30k a year and will have an '89 vehicle trade in but prefer to make no down payment. My credit is limited since I was rebuilding after having alot of bad student loans. I just have the student loan and a capital one card with a $2k limit. So will I qualify for a car anywhere? WILL THEY LOOK AT MY DEBT TO INCOME RATIO OR WILL THEY LOOK AT THE FACT THAT MY ONLY OTHER PAYMENT IS $81 A MONTH. I PAY NO RENT BECAUSE I LIVE WITH GRANDPARENTS. I kind of want a Honda of some kind but I am also interested in a Ford F150 or a Dodge Ram or Dakota. Please help me if you have answers.
RE: Can I get financing for a You may be able to participate in a Recent College Graduate Program, which have more liberal credit criteria, since most graduates do have a limited credit history. If you have no other debt, this is a plus because lenders will consider your outstanding debt. Depending on how recent the defaulted students loans were, you may have a problem obtaining traditional financing, especially with such short credit history.
RE: Can I get financing for a I feel your pain. You are exactly in my situation. The only answer that I have for you is to save $1,000.00 or more and trade in your vehicle. The car dealers will most likely try to put you into a car with a value of about 10-14K with an interest rate hovering near 20%. I know this sucks, but you have to bulid your credit. I advise you to get the car of your choice, eat the interest, then after a year of on-time payments, refinance with a bank. The banks would be hard pressed to pass up your payment standing. When you do go car shopping, DO NOT tell the dealer that your credit is poor and that you have a trade-in. Instead, work on them for a good price, then hit them with the trade-in and your credit hisory. Have with you a recent pay stub, all documentation regarding your credit history (i.e. repayment agreement)and a phone bill. (They need a phone bill because the need to call the people on your phone bill if you miss a payment - it's all part of the game) I made the mistake of telling a dealer that my credit sucked. Once I did, he immediately tried to put me in a jollopie that my dad wouldn't neven drive. Good luck and let me know what happens.
