My credit score is between 450-500. Horrible I know!!! I applied for an auto loan online and….?

Deal Score0

they told me to come in, bring checkstubs,references,utility bill and my down payment. I have all those things and $ 1500 to put down. I have an open auto loan now and owe $ 4700. What are my chances of getting financed on a ’07 or ’08 Ford Focus? No sarcasm please, I feel awful enough. Thanks

  1. Reply
    joe s
    November 10, 2011 at 4:14 pm

    Do you still have the car that belongs to the open auto loan? They will probably ask you for a lot more cash up front…..about twice or more than what you already have. If you can get by without such a newer car, instead of buying a new Focus, concentrate on re-building your credit. It is not difficult to raise a 500 score to 550 or even 600 in a short amount of time. I personally filed banruptcy on over $ 300,000 and took my 500 score to a 650 within a year and a half. I’m now a solid 750 and only 6 years since my BR. If you need further advice, email or Im me.

  2. Reply
    Ian F
    November 10, 2011 at 5:04 pm

    Better now than they will be next year, since car loans are starting to implode, too.

    You’re going to get RAPED on the interest. Just spend that 1500 dollars on a beater and pay off your loan. Paying off the rest of your loan reliably will help your credit score. Getting into more debt which you probably won’t be able to afford…won’t.

  3. Reply
    November 10, 2011 at 5:35 pm

    There are other factors they are going to look at such as what are you going to do with your current vehicle – the $ 4700 loan? If you are going to trade it in, how much is it worth? If it is worth less than $ 4700, there goes that down payment. How much money do you make – can you afford the payments on the car that you want. Are you current on your bills? Are you current on your auto loan now?

    If you are not current on your auto loan, your chances of being approved are pretty poor. If you are currently behind on your bills than you are also unlikely to be approved. If your debt to income ratio is to high – meaning the bank feels that you cannot afford to make your payments, then you will not be approved.

    Be prepared that even if you get approved – they may not approve you for the amount that you want or need for a 2007 – 2008 vehicle. They may offer you a $ 10,000 loan when you need $ 18,000 and then your choice is to go with a less expensive vehicle or find more money for the down payment.

  4. Reply
    Frank C
    November 10, 2011 at 5:49 pm

    I wouldn’t count on it, With that credit score they are going to hammer you on the interest. Best bet is to look for one that costs less than $ 7000 or a car that can be argued down to this price. Have somebody who knows a lot about cars check it over and make sure it doesn’t need major repairs. Once your mechanic buddy approves it, take a look at the deal the bank gives you, if you can afford it buy it. If not Pick something cheaper. You should check with a bank manager about credit inquirery practices I know there is a certain number of days you have that all the inquiries with in this time will count as one in the end. Make sure you stay with in this window because frequent inquiries will lower your score even more.

    Good Luck

  5. Reply
    November 10, 2011 at 6:03 pm

    Going newer shouldn’t be your goal at this point. Financing 15K-18K at 20% APR will cost you a bundle. Plus you will be paying so much in interest each month that it will take you forever to get to a point where you are in good enough shape to trade again.
    I’m in the business and see this happen a lot. It has never made sense to me. The smart financial move, which comes at a sacrifice of a bit of pride, is to purchase something far cheaper (5k-7k) and pay your high interest on that amount while you rebuild. In 2-3 years you will be in great shape and with a much better credit rating (provided you fix what initially caused the problem). That’s when you can buy your new car, spend 18K and have a payment that’s around what you will be paying now since the APR will be sooooooo much lower. Unfortunately, you have to bit the bullet and do what needs to be done. Your choice is whether you want to bite into a .22 caliber bullet or a .44 magnum bullet for now.

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