i am applying for an auto loan through hbsc and i currently have a low to fair credit score. i also have a credit card that is closed and still unpaid. does this ruin my chances of being accepted for the car loan. Should I pay off my credit card first, or should i start a payment plan??? pleasssse help ASAP
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{ 10 comments… read them below or add one }
1. No – you will still get the loan in most cases. Unfortunately, you will pay real high rates.
2.You may want to call the credit card company and see if you can pay it off and ask if they will report your debt as never late… sometimes they do this… sometimes they don’t. Its certainly worth a try.
3.If the credit card company is not willing to help you then I would consider disputing thier calculation of your bill total. and be dificult and then maybe they will give you what you want. Most times they will give you what you want – I mean they just want to be paid.
4.I would pay in full if they will remove any negative reporting.
5. Make sure your credit report is clean then your loan will be at a better interest rate.
Good luck
duh !
There are auto dealers that finance anyone , the ones who say "buy here and make payments here". The downside is that they charge you high rates and they overprice the cars they sell. You should pay cash for an old car untill you pay off your debts, or you’ll never get ahead.
Auto finance is what I do for a living and bad credit doe’s not ruin your chances of being approved for a loan.
From what you stated H.S.B.C. most likely will turn you down, (they are one of my largest lenders).
Find a dealer that advertises Special Finance and go talk to the Manager, they can help you.
If you are to obtain a car loan, your interest rate will be a little high.
It probably won’t ruin your chances, but it definitely will hurt your chances. You will probably pay higher interest rates, you may be asked for a higher down payment as well.
There are many different factors that will make a difference.
Do not use HSBC they are vicious if you get behind they do not hesitate to send you account to collection lawyers and they use the most vicious ones. There are some car dealers that will help you, just cause your score is low dosen’t mean you cannot get a car but i would try to pay on your card it can only look better for you. Any time you pay on a credit card it looks better if you let it fall it looks terrible believe me i have had this happen. It can make a drastic change in your score and can make it go up iw ould hold off and pay on you card first or maybe call the creditor and try to get them to settle for a lesser amount on a payment plan, then go check your score you might be suprised. Good Luck
Your unpaid credit card will not help you at all as it will be seen as an ‘Unpaid Default’ from a lender…
Generally, lenders will accept small paid defaults from telco companies only.
You can try your luck but be aware that your credit score will be affected if you apply to more than 3 lenders in 3 months or 6 lenders in 6 months.
Can you save for a cheap car first and then start a payment arrangement on your unpaid card and apply for your auto loan after your have repaid this card plus then you will be able to trade in the cheap run about?
Just an idea… Best of luck!
It could effect you. You can get a loan but with a high interest rate. I had this happen to me and I had a car loan with 18.95 interest. If you can try to pay off as much as you can before you buy a car. I would also try your bank too. Sometimes there rates are better. Talk to your banker about it. They may have some good ideas for you.
Good Luck!
well it doesn’t help, but if the credit score is not too low, and you have a good debt to income ratio, you may be able to get your loan. HBSC financed my car, my credit isnt excellent, but it isn’t ridiculously jacked up either. Good Luck!