I messed up my credit horribly last year with a foreclosure, now my car just blew up. How can I expect to get any kind of car loan with such a low FICO score – it’s around 450 right now. I am worried. Thanks for any help on this.
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{ 6 comments… read them below or add one }
Do you belong to a credit union? If not try to join one, this may be you way to obtain a loan. If this does not work, you may need to resort to a buy-here pay-here lot.
Get your act together. Don’t buy what you can’t afford and pay you bill on time.
To earn a 450, you have proven yourself a bad credit risk.
Lenders lose over $4000 per car on repos. Probably more on new cars.
So given your terrible track record of paying your bills, you have a high probability of the car getting repoed and the lender losing $6000-8000.
Therefore, you would probably need at least $4000 down, probably more. And you will pay an above market interest rate.
Heres an idea, buy something you can afford with cash.
I am a millionaire and drive a $1600 car. My creditkarma score is 769. It would be higher except I lose points for not having a home or car loan. Paid cash for both.
A 450 will be rejected by any major lending institution automatically. You will practically have to pay cash in order to get a new car. Your best chance at a loan is most likely a buy-here, pay-here lot, however keep in mind many do not report your loan to the credit bureaus unless you fall behind in payment. This basically means you might not rebuild your credit with this purchase, however you might get a car. Good luck and I hope this helps.
If you’re thinking of buying a new car, or a new-to-you car, and will be taking out a loan, be sure you’ve got your bases covered. It’s not enough to simply have an idea of who you’re going to call for the loan. If you do a little bit of homework you can determine how likely you are to receive the money you’ll need to buy the car.
http://www.worldbestloans.com/guaranteed-car-loan.htm
First of all, have you figured out how much you can afford to pay each month? The easiest way to find this out is to take your monthly income, divide it in half, then subtract your rent or mortgage payment from that half.
Here’s an idea, fix the car you have. You are not in a good financial position to be going deeper into debt with a car loan.
If you have a job you should be able to come up with the money to pay for car repairs. If you can’t come up with the cash no matter how much stuff you sell and how much money you save you can always go to your bank and ask for a short term small personal loan. A loan of $1000 to get your car back on the road using the car as collateral should be easy to obtain even with poor credit.
Dear ,
Few week ago I was searching on this question for my assgnment and found this one very helpful
http://financeme.freevar.com
Wish you a good luck,