I wanna buy a $20,000 truck and my credit score is 450.How much money do i have to put down to buy it?Help?

Answer 1

With a credit score of 450... you would have to have a down payment of about $20,000.

Answer 2

It depends on the Black book (not Kelly Blue Book) or the NADA value. Every auto loan is a risk to a bank. The amount of risk is greater when the credit history of the aplicant is not so good. Raising the risk on the loan will of course raise the interest rate or disqualify the applicant all together. What lowers the risk, other than credit? The loan amount in relation to the value of the item.

This $20,000 truck, what year is it? Options? The loan value of a 2005 Ford F-150 Extended Cab 4x4 truck according to NADA is $14,000. While the retail value is $18,000 and the trade in value is $15,500. The bank don't give a crap about retail value. They either go by trade value or loan value. Every bank is different.

With a score like yours, you need to be in a good equity position on the loan. Probably 80% or better of trade in value. That should be your loan amount, if you want to get 1. Approved and 2. The best rate available with your credit.

However, banks also look at your previous auto payment history. What was your last car payment? $300? $500.00 a month? Did that vehicle get repossessed by the bank? IF so, your new car payment must be lower than the previous one, if it was in a bankruptcy or repo. Banks will often take your gross monthly income, and allow 12 to 18% of your gross income as an allowable monthly payment for a car. The better your credit score, the more % they allow for payment.

Answer 3

if your credit score is 450 i wouldnt be buying 20,000 truck 450 is not good score you will be paying out the a$$ on payments probabbly pay about 550 or 600 a month for 5 years with that score

Answer 4

I have good news for you... The worst is over, your credit score can not get much lower. As far as the truck goes, find one that you can buy with cash and forget the bank.

I would reccommend starting a secured line of credit (credit card) at a bank. Orchard, I beleive part of HSBC, offers secured credit cards to all. (They do not report differently). Make good, timely payments for the next three years and your score will look a lot more spiffy.

Good Luck

Answer 5

I would suggest working on improving your credit score! It's an important number that can make your life a lot easier. If you really need a new means of transportation get something less expensive and save up for the truck.

Answer 6

If your credit score is that low, you will probably have to put at least 20% down....and even then you may have to go through a lending institution that will charge you a high interest rate.

Answer 7

with a 450 a nice chunk...contact the dealer and talk with them every company is different. but i thinhk you need to work on your credit scores before you try to make such a large purchase if you fix your credit first then your payments will be less cause they see you as a "qualified" buyer

Answer 8

I hate to say this but it would be hard to get the truck financed and the interest rate will be very high. You would probably have to put at least $5000 down.

Answer 9

That's a pretty low score. You might have to put up a good chunk of it.

Answer 10

the 1st subject i might do with $a million,000,000 is pay off the charges and make advantageous my young ones had each and every thing they mandatory. You did not ask this, however the 2d subject i might do is purchase my dream place up north. thank you. ; P