Hi, i just applied with household auto finance. they approved me for $20k 72 months with no money down. But the catch is a apr of 14.5 % What should i do? should i take this approval and bargain with the dealer to get a lower rate? any input is appreciated.
What are your credit scores? Also, and equally important, to qualify for a decent rate you'll need a good income to debt and fixed payments (rent etc...). They'll want to make sure you make enough to afford the monthly payments. I think they won't let you go over 36% of your pre-tax income on fixed payments.
14.5 is very high. you can get no money down elsewhere with much better apr. What are your scores? If I remember Household usually uses TU, as does e-loan. If your scores are in the mid-600s or close to this on TU, you can probably get eloan with a much better rate. I got 5.15% with no money down. Its worth a try for a much better apr.
It depends on your previous auto history. Mainly thats all they care about. If you do have good auto history and bad credit debt, they will probably overlook it. Have you been cleaning up your credit? You could always refinance it 6 months or so down the road.
they pulled my equifax , i am in brooklyn ny. the score is 670 beacon. I think my high debt nailed me. I guess i should concentrate on paying that down before i buy a car. 14.5% is kind of high. btw, does eloan have the right to look request my tax return from the irs? I was thinking is putting down my "household" income. Or should i just put down what i make on my W2?
Whoa... That rate is way too high for today's market, and 72 months is an incredibly long term at that rate. Try your credit union for 6%. And reduce the term to 48 months, 60 at the VERY most. You can also BT the balances to a relative's card until the balance disappear on the reports, and then try to get dealer financing in the LOW single digits, and again, not for so long a term. Your Equifax score is too good for what they approved you for above.
Re: Re: household auto approved me for 20k Household auto is mainly a subprime lender, so you probably got some of *their* lowest rates. However, with an EFX score of 670, you should be able to get something better. Try a credit union.
Re: Re: household auto approved me for 20k Leo728, They have no right to request a look at your tax returns. To do this they would have to have you sign a 4506 form that is used to request your tax returns from the IRS for mortgages.
