Can you get an auto loan with a 554 credit score?
Q: Can you get an auto loan with a 554 credit score?A: Yes, most likely you can get an auto loan but your interest rate will be high. Every car dealership finance department works differently to meet their customers needs. Typically the larger the dealership, the larger the finance department and you may have better luck on financial options.Some dealerships only look at the FICO 8 score which tends to be a bit higher than your other FICO scores which can work in your favor but not all dealerships work this way. They will likely offer you a lease to bring down your monthly payment if you are in the process of repairing your credit. Expect to bring $300-$500Always make sure that when you are shopping for a car you have a monthly payment in mind that fits your budget. This way the salesperson isn't showing you cars you can not afford. Make on-time monthly payments for 8–12 months and then revisit the finance department and/or a local credit union to see if you can refinance your loan for a better rate. The banks will be looking for two things: 1) That you have been making on-time monthly payments and 2) that there has been some improvement to your credit score.
What kind of car can I finance on minimum wage?
Tips, unless you are claiming them on your taxes, are not verifiable income, and therefore, will not be considered. At $7.95 an hour, for 40 hours, times 52 weeks, is $16,536 (your gross pay). Assuming you're paying 30% in taxes, your net pay is $11,575.20. A lender will approve a payment up to 25% of your net pay ($11,575 / 12 months = $964.58. 25% of that is $241.14). You need to look at a car around costing you no more than $10,000. This car, minus your $2,000 down, will sell for $8,000, plus tax ($640 - estimated at 8%), title and license (estimated at $450). You will finance around $9,090. Considering you're a first time buyer I estimated a rate of 11.95%. You're looking at a payment of $239.15 at 48 months. Anything for less money will likely be older, and have have higher miles, resulting in a shorter payoff term, which will raise your payments. Remember to consider full coverage insurance, which you said would run around $200 a month. Also, you'll need gas, so estimate another $200 a month. You should also budget for incidentals (oil changes, tires, upkeep, and maintenance), averaging around $50 a month. Altogether, you're going to spend no less than $8,269.80 per year, for the next four years. Keeping your current job, this will leave you with $3,305.40, or $275.45 a month. I will say this: If you buy a $2,000 beater, keep liability insurance on it, and drive it until the wheels fall off, and save everything you'd be paying on a new car, you'd have an extra $33,079.20 at the end of that same four years. Just a thought... Hope this helps.
Income requirements for typical Auto Loan?
I have 14 lenders and not one of them will work with anyone that makes less then $1,300.00 a month. There are dealers out there that will lie about a persons income if they think they can get around proving it to the bank, remember banks on allow 20% of your gross monthly income for a car payment and no more then 45% total debt to income. They will also factor in $300.00 a month for rent even if you live at home and $100.00 a month for insurance. Good luck.
Refinancing Auto Loan- under $7000. Suggestions?
Does anyone know of a lender that is willing to refinance an auto loan with a payoff amount less than 7,000? I'm interested in refinancing, but having no luck. I currently owe $4.200. Not a whole lot, however that amount extends over the next year and a half. I understand I can cut my interest if I exceed my monthly payment amount, but my payment is already OUTRAGEOUS! With that said, I can't afford to pay any additional a month. Any suggestions on getting this quickly paid off? It was a 6 year loan (265/mo), so you can only imagine how bad I want this gone. (Wish I would have known about refinancing before all this mess!)
Nationwide used auto loan req?
Title says it all, what are the requirements for nationwide used car loan? Such as minimum loan amount... As well as if they require it to be bought from a dealer? Thanks
Is it beneficial for me to split my auto loan payments into bi-monthly payments?
First check the terms of the loan to see if multiple monthly payments or prepayment will incur a fee. If not, it is beneficial. Interest is calculated on the daily balance of the loan. Each payment is applied first to interest and the rest toward principal. Making a mid-month payment lowers the balance & principal and reduces the interest charges, so the next payment has more applied toward principal. Do this repeatedly and it makes a difference. If you're paid every two weeks, I recommend making half the payment each paycheck because this will achieve the interest savings plus include an additional ~payment each year. Whether you make a payment twice a month or every two weeks, pay more than the minimum payment whenever possible. $5 here and $20 there can add up over the life of the loan (assuming there's no penalty).