need to secure financing for a poor credit vehicle loan?
I am trying to purchase a car from a private party for around $23000. I have about $11,000 to put down cash but will need financing for the rest.I only have a 540 credit score. Does anyone have experience in auto lending that can refer me to an institution that would supply this type of loan. Is it easier to get a loan if your buying from a dealer? Please don't send me to some website to apply for a million different loans. I am looking for concrete information from someone who has done this or knows something about it. thank you
- Stupid FlandersLv 71 decade agoFavorite Answer
You picked the worst time in American economic history to do this.
Right now, many lenders are only giving loans to people with good credit (over 700 score).
The state of the economy was caused by people living beyond their means.
Sorry to be blunt, but with a 540 credit score, you have made some pretty bad decisions. Buying a $23,000 car with a 540 score is another bad decision and if you are lucky enough to secure a loan, your interest rate will be astronomical (over 20%).
You should focus on improving your credit right now.
For example, use your $11,000 to pay any old debt you owe and purchase a less-expensive car.
You could even buy a $10K car, put down $7K and finance a low amount to improve your score and prove to lenders you can handle a loan agreement.
- rezaiLv 44 years ago
I'm careworn. What occurred with the $three hundred secured bank card? Is this the $309 you owe a corporation? Was it paid out of your bank account? Was it paid in any respect? If so, touch TransUnion to right this know-how. If you are pronouncing that you simply not too long ago bought a secured bank card, do not run it up over part of the credit score prohibit and pay no less than the minimal fee earlier than the due date. With time, your credit score rating will have to get bigger. You could also be ready to get a co-signer to get the automobile by way of the financial institution ... this might be your satisfactory choice so far as curiosity premiums. A automobile mortgage might aid upgrade your credit score rating so long as you are making the repayments on time. If you don't have any co-signer, you would take a look at a finance corporation (akin to Guardian or Beneficial) to finance the automobile, however you are going to almost always want approximately part the rate of the automobile as down fee and your curiosity price will likely be beautiful top (probably as top as 23%). You might be paying by way of the nostril. Although you suppose you would not brain paying the curiosity proper now, finally it might get historical ... notably a yr or 2 down the street while you are making top repayments, you continue to owe a ample quantity at the automobile, and it is nickling and diming you with a wide variety of fix costs, plus you have got to pay complete-insurance policy coverage on it considering that it isn't paid for but, or even your coverage premiums are top considering that of your credit score. Do you particularly, particularly want a automobile proper now? If so, have you ever regarded by way of the paper for an older mannequin that has been owned by way of an aged character? They're by and large now not sporty, however they usually have low miles and feature been sorted. Depending on wherein you are living, you perhaps ready to opt for one up for probably $3000. If you do not particularly want a automobile proper now, pay attention to solving what is incorrect along with your credit score file. Take out a smaller mortgage with a finance corporation and pay it off ... it's going to upgrade your rating. Maybe you can be in bigger fiscal form subsequent yr.
- 1 decade ago
Why don't you just buy a car for $11,000 instead of buying something you can't afford? You can get a decent car for that.
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- STEWIELv 61 decade ago