Auto Loan possibility?????

[MissSilence]

Just wondering anyone's thoughts on the possibility of an auto loan......

Credit is not too good

Positives

First Premier Card 200 limit

balance 32.64

open 21 months no lates

small installment loan (only reported to EQ)

150

Paid off in 2004

no lates

Negs.

several old collections 5-6 yrs old

My real ficos are tu 631 ex 626 eq 631

Have income of 1,812 from disability and child support

So far have 1,500 saved for down payment will also be trading in my van hoping to get 3,000 for it but more likely 1,500-2,000

Looking at the Kia Rio I think thats the one it is, its small starts out at around 8,000 new. I would prefer another van as I have 4 kids but I know with my credit the interest rate if I even get approved is gonna be nasty. So my thinking is get the car pay off the balance within a year, save some for a down payment, then start looking for another van. I would probably have a better chance then of getting a better interest rate with a paid off auto loan.

Any thoughts, suggestions or advice??

Where would be a good place to apply or with the down payment and trade-in would it be better to apply with Kia dealership??

[PolarBearnCO]

My credit scores were in the high 5s when Cap 1 Auto Finance approved me for $30K at somewhere around 12%. My interest rate was lower than what MyFICO and BankRate.com suggested it should be for my credit scores, so I didn't mind paying the 12%. Try them.

[gypsie]

Most Dealerships will look for financing thru various creditors until they find one that will finance for you. That can be good, because they almost always find a lender, but it can be bad for other reasons- high interest, and numerous hits to your CR.

However, like most of us here- we've had to "pay" the higher interest to get better interest later.

A bank will be much harder to get financing. I know, my bank prefers FICOs above 680.

The best place I found, when my FICOs where in lower to mid 600s - was my Credit Union- they tend to be much more lenient and "forgiving". My CU required me to have an account for 1 month before I was eligible for loan application.

Before, you have anyone run your credit- you should take the van to the dealership and ask what the trade in would be. If you have a friend or relative that can help you out with transportation, you might be better off selling the van yourself.

[direred]

CreditBoards.com has an auto loan forum where you can run your app by an auto finance guy (MarvBear). It might also help to read the posts of who he thought would get approved vs. denied.

Are you a member of a credit union? They frequently have the best rates.

[MissSilence]

I applied with Capitol One over the phone since the online ap wasn't working for auto loan but was denied I asked why and the man told me that I would have to wait until I got my letter to know for sure but from what he could see it looked like they dont accept social security disability payments as income:roll:

[dallas01]

Wouldn't it be nice if the Goverment didn't consider SS payments income? I can't believe if you have to pay taxes on it being income that it wouldn't be considered income during a loan process.

[MissSilence]

Guess I'll find out for sure when I get the "your screwed" letter in the mail, but I really dont understand why they wouldn't accept disability as income especially since its not like I would all the sudden stop receiving the payments if i worked at some place I could get mad tomorrow and quit. It all just confuses me:confused: