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Very Low Credit Score in need of a car loan


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My highest credit score is 565 (due to two chargeoffs and some late payments) which I am currently trying to clean up with the help of this site. I currently need to purchase a new/used vehicle because my currently vehicle has major mechanical problems which is too costly to fix. Does anyone know of a credit union or a bank that I should use that I may have a good chance of getting approved with my credit score being so low?

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There are plenty of vultures to choose from. Try http://www.poopycredit.com, for instance. They'll refer you to places that'll demand weekly payments and interest rates approaching payday loans--if that's what you really want. However, you'd be a lot better off scraping together $1000 (sell stuff around the house on Craigslist, sell plasma, borrow from family, do some side work, etc) and buying a beater outright with cash. Then put some money aside every month and then buy a more reliable car once you have saved up $4-5k.

Edit: If you're handy with a wrench, you can also part-out your current vehicle and sell the stuff on Ebay or to local shops. Odds are you'll get double the amount of money just for the engine and transmission than you'd get selling the entire thing to a salvager.

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Kia will usually finance everyone. Don't know what the rates would be like but if you just must have something, you could give it a try.

I know in TX a car is a must not a luxury, so I feel your pain. When I was in TX and had bad credit and no income (after Katrina) I had to get someone else to finance the car for me. It sucked but I didn't have a choice a car is a must.

Be sure you consider the total situation before you get into something. Depending on the age of your car, it might be better to try to have it fixed.

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I was able to get one with JDByrider. My score was in the 400s at the time but I did offer an $800 down payment. I pay 156 every 2 weeks for my van and the interest rate is 18% but can be refinanced. Haven't had a problem yet on the whole deal and the car runs great.

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Well, since I bought the new van, we now have a 3rd car, a '91 Ford Taurus that has had everything done to it, new engine, tranny, even paint. Cold A/C hot heat. I'll probably ask $800 and would probably take $500 to get rid of it.

There are tons of people like me and deals to be found. You can be motivated by prestige in financing something or just lazy enough to want to get a local lot to fix your problem... either way I don't think are good ideas to get a new payment in your life for a basic need. I'm not saying take a bus like others have said before to other people, but I was in the market for a vehicle and bought one I like so just saying my advice is consistent with what I would do.

In my case I know it's for the best. I don't owe anyone anything, ever. If I want to set it on fire just to watch it burn, it's my property and my decision.

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A new car???? No way. Not in a million years. Back when I was POOR and was on my way into a bankruptcy, I drove an almost new car. Now that I drive an old Civic, I might look like the nerd in the freecreditreport.com commercial but it saves me about $900/month between gas/insurance/payment. I have the same salary as before my BK (same job, same title), and now I max my 401k and still have money leftover at the end of the month to save for a rental property. The thought of a car payment literally makes me sick to my stomach.

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Isn't a car note supposed to help your credit scores though, if done right? i.e. pay on time, extra payments, etc?

I understand that a car note incurs an extra expense, in addition to gas and insurance, but I believe if done right, a 6 year note even with a high interest can be paid in 2-3 years. Of course, you have to work to get that done, but it can happen if you come across extra money. If it were me, I would find a way, just so that my loan isn't upside down by year one, so that I could refinance.

OP, good luck with your situation. I personally know that public transportation sucks...I envy that dork from freecreditreport.com.....lmao.

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Isn't a car note supposed to help your credit scores though, if done right? i.e. pay on time, extra payments, etc?
Yes, because it is an installment loan. You can do the same thing by walking into your credit union and getting a secured loan for 3%. Then take the money and dump it into a high yield money market and earn 4%. YOU GET PAID TO GET A "PAID AS AGREED" INSTALLMENT TRADELINE ON YOUR REPORTS- same as a car payment without having to feed the machine every month. :D
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A new car???? No way. Not in a million years. Back when I was POOR and was on my way into a bankruptcy, I drove an almost new car. Now that I drive an old Civic, I might look like the nerd in the freecreditreport.com commercial but it saves me about $900/month between gas/insurance/payment. I have the same salary as before my BK (same job, same title), and now I max my 401k and still have money leftover at the end of the month to save for a rental property. The thought of a car payment literally makes me sick to my stomach.
It's not the same for everyone though.

My VW had 25k miles and needed $2500 in repairs to pass inspection (front brakes, replace a cracked headlight assembly, shocks, etc). And my insurance was going up every year simply because the price of parts was going up every year since it was an "older" model car (1999). And this is without ever having a claim on my policy.

The car I bought in September is a 2008. My insurance went DOWN so much that it more than covers the monthly interest. My payments, since September, are LESS than what I would have paid to get the old car to pass inspection. I won't have to pay for any repairs for the next 4 years (except for wear and tear issues like brakes, tires, etc). I also get far better gas mileage.

For me, it would have been foolish, and likely more expensive, to trade in my car for a "new" used car. It's been nice not having a car payment for the past two years, but after taking Septa to work every day for a month last August (which involved taking a trolley, then a train, then walking a mile to the office), it's money very well spent.

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It's not the same for everyone though.

My VW had 25k miles and needed $2500 in repairs to pass inspection (front brakes, replace a cracked headlight assembly, shocks, etc). And my insurance was going up every year simply because the price of parts was going up every year since it was an "older" model car (1999). And this is without ever having a claim on my policy.

The car I bought in September is a 2008. My insurance went DOWN so much that it more than covers the monthly interest. My payments, since September, are LESS than what I would have paid to get the old car to pass inspection. I won't have to pay for any repairs for the next 4 years (except for wear and tear issues like brakes, tires, etc). I also get far better gas mileage.

For me, it would have been foolish, and likely more expensive, to trade in my car for a "new" used car. It's been nice not having a car payment for the past two years, but after taking Septa to work every day for a month last August (which involved taking a trolley, then a train, then walking a mile to the office), it's money very well spent.

Really? I never heard of insurance going up as a car ages due to higher priced parts. I guess I'm glad that I have an old Chrysler. My insurance has been going down every year. This year it's a little under $600 (dirt cheap for around here).

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You may be right. Everyone has their own experiences. Went I bought the old car, my insurance dropped from $2400/year to my current $600/year. And that is with full collision and $500,000 of liability. Plus, I purposely bought an old Civic because of reliability. And so far it has paid off. It runs like new at 212,000 miles. The trade-in value is actually HIGHER than when I bought it in 2004. All I know is, the burden of a car payment and other costs was nothing but a monkey on my back. And my monthly books balance a lot easier now with the occasional minor repair & $30 in gas/week for the 350 miles I drive.

One day I will buy a new car. WITH CASH. I'm saving as fast as I can for an IS250. I'm hoping that the 2010 models will have a hybrid model. Screw this buy now/pay later/make the bank happy with perpetual car payments stuff!

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Really? I never heard of insurance going up as a car ages due to higher priced parts. I guess I'm glad that I have an old Chrysler. My insurance has been going down every year. This year it's a little under $600 (dirt cheap for around here).

Yeah, it's because of the collision insurance. I would have gone from $160/month to $40/month if I just had liability, but I kept the collision just in case.

Full coverage on my new car is $88/month.

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Yeah, it's because of the collision insurance. I would have gone from $160/month to $40/month if I just had liability, but I kept the collision just in case.

Full coverage on my new car is $88/month.

Like Jq sez, everyone's situation is different. When I had a car payment it was a $300-400/month monkey on my back in addition to the $1000-1100/year in car insurance. I've been car payment free for 4 years and I'll really be sad if I have to do it again.

Now, the fiancee needs a new car and we're going car shopping on Saturday. I'm hoping to find some good late model used car for him. We're going to try the one dealership that about 12 of my co-workers have used and haven't been disappointed.

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Like Jq sez, everyone's situation is different. When I had a car payment it was a $300-400/month monkey on my back in addition to the $1000-1100/year in car insurance. I've been car payment free for 4 years and I'll really be sad if I have to do it again.

It's not as painful as I thought it would be. My payments are only $400/month, and I have it set up in my Commerce bill pay account and it comes out on the same day I get paid, so in a way I never see or transfer the money, if you know what I mean.

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It's not as painful as I thought it would be. My payments are only $400/month, and I have it set up in my Commerce bill pay account and it comes out on the same day I get paid, so in a way I never see or transfer the money, if you know what I mean.

Yeah, I have my savings accounts and Sharebuilder set up to debit right out on payday. If I don't see it I don't miss it as much. It's also required me to get responsible and careful with my money. In my case that's a very good thing. Otherwise, I have a history of just peeing my money away.

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