Auto Loan with Bad credit question?
Since your credit score is 540, my advice to you is to please (I beg you) don't if you have not done so. Instead see if you could raise about three thousand dollars (or even slightly less). If you live in the U.S. as I have assumed, then there are many reputable car dealers you could visit to purchase used cars, for now. In the interim, apply for a credit card from Orchard Bank. (I can vouch for the company as I have a credit card account with them.). The company is listed on the web. They probably will not give you more than $300 credit limit with an interest rate of say (not more than 11%) because of your very low score. Nevermind, take it - and start using the credit card responsibly, not exceeding your credit limit and paying off the bill each month before the due date. Try not to use more than 25% of your credit limit. (Please, don’t apply for credit until after 18 months of opening a credit card account.) After 18 months of successfully managing your credit account, you would be happy to find out that your credit score would be very good. This would then place you in a much better position to buy the car of your dream with a very good interest rate of not more than 6%. On the other hand, taking a car loan of $17,000 could sink you in the long run with your present credit score. Even if your credit score goes up on account of paying your car note on time, the APR will certainly not (except you refinance, which, of course, will take longer to pay-off, although with a lower APR). At the moment, it is doubtful if you would get an APR of less than 22%. By the time the car is financed, this could bring the total finance to about $30,000 for the duration of 5 years (60 months). It would be lower if you were able to put down about $5,000. Overall, you now see what I am trying to explain. In summary, a credit card if used responsibly after 18-24 months without opening any more accounts during the said period, could raise your score significantly (around 660 or slightly more). Although car note if paid on time would raise your credit score, you could be trapped with a very high APR for 5 or 6 years. It would then be like paying double because of your present credit score. Be wise! I am speaking from experience. I hope the above information is useful. Best wishes! RICHARD
$16000 car loan feesible with horrible credit?
DO NOT go with a new car! Because of your credit situation and the interest you will pay, you will put yourself in a hugh losing situation. I know you want something reliable and feel new cars wont give you any problems, but this is my advice to you. don't concern so much on price as you need to calculate what you can afford as a monthly budget. If your max budget is $350.00 a month find a car that will give you a $300.00 month payment. that way the extra $50.00 can be sent to pay down the cash principle of the loan. once the cash principle is paid off, what ever interest left over is gone. this is great for 2 reasons: 1: you pay much less in interest charges even though the initial rate is higher. 2: you pay off the loan in less time and it rebuilds your credit. a car loan is the second most powerful piece of credit an average person can have (#1 being a house loan) because you are putting so much down vs. the total amount financed you would have a decent chance of getting approved if you have a stable job history and residency. buy a 2-3 year old car one preferrably that is certified, to make sure you have warranty coverage on the vehicle. by doing this you save on the new car initial depreciation (which is the biggest loss a car will take over its life) bty a $15,000 car at 21.9% interest over 60 months with 7000 down would give you an approx payment of $225.00 + tax and DMV fees the total interest paid on this type of loan is over $5400.00 if you make all 60 payments and dont pay down the pricipal I hope this helps
$1600 Credit Card Debt.... help please?
Alright, so I've been bad with my credit since the beginning of my last relationship. Brainfart. Anyways, so my credit is fairly bad and I really want to get myself out of debt but I can't seem to really fix this problem. I'm currently around $1600 in credit card debt. Once card is at about 950: limit 1000. Another is at 654, limit 500: lots of late payments. Yeah, I know. I'm really bad with my payments because when I do pay my cards I'm left with no cash in my pocket for gas or food and then I go and put more on my cards because of it. I'm horrible and I realize I need to budget but I really need some help with it. I make about 350-400 dollars every paycheck biweekly. Anyone.. please help. I dislike the fact that I have 2 cards and have 2 seperate payments and paying about 300 out of each paycheck to cover them. Leaving me with basically nothing for 2 weeks. Personal Loan to cover pay the cards and only have one payment to really worry about?
I have horrible credit? Need tips of recovery?
I was 18 when I first had my car, big mistake. Was never responsible, have a debt to pay, so many hard inquiries, have three collections, 2 major secured cards that haven’t been paid in full. My credit is in such a down fall... I literally cannot get approved for anything which I understand this is what happens when you have horrible credit and not being responsible. But this year will be a good year for me I want to eliminate as much as I can and boost my credit. Any tips!? Anything is useful!
Do carmax help people get a car with bad credit?
Why would you want a car that has bad credit? OH....Ok. Any dealer will sell a car to anyone as long as they are willing to pay an outrageous amount of interest because of poor credit.
Car loan with bad credit?
You are a very good candidate for subprime or buy here pay here financing. Anyone with $1500-2000 down is. What most don't understand is how bad of a ripoff it is. Not just the interest rate which could be 12-29%, but the cars are generally way overpriced. So a $6000 wholesale piece will be $12000+ interest since you have bad credit. Whereas if you were paying cash from a private party, you might get a similar car for $7000 cash. You'd be far better off buying a $2000 car for cash from a private party. Or waiting and getting something better, again for cash and from a private party. Generally, you want to cut dealers out if possible. Simply because they have overhead, salesman and are in it for a profit. (I was a curbstone dealer for a dozen years and while I was honest and provided good deals, you cant assume that all curbstoners are) And I dealt in CASH ONLY.