My friend is trying to get a car loan but the interest rate is 21%. He had a past due student loan that he?

Question

paid off. What can he do to get a better car rate? What can he do to get his student loan default off his credit report?

Answer 1

He can Triad or Roadloans.com for a different rate. He should get a copy of his credit report and, if the loan is still showing up, he needs to contact the institution that gave him the loan to have them remove it, and copy the credit reporting company as well.

Answer 2

He needs to save up the cash to buy a car. It may not be the car he wants but he'll be better off than paying 21%!!!
If the student loan is paid off though he was late on it, only time can heal that wound. It could be up to 10 years before it drops off. He (and everyone else) is better off paying cash for a car than financing a depreciating "asset".
Everyone should have a savings/investment account that they put money into every month (as if they had a car payment) so that when it's time to replace the car, the cash is there. Seem impossible? Then people are buying TOO MUCH car.

Answer 3

I would not buy any car if the best rate they had was 21%. You'll NEVER get it paid off.

Save up and buy an older car with cash. He can get a junker for around $1k if he looks around.

In the meantime, pay off any outstanding debts. Work hard on paying any new bills immediately.

You say he defaulted on his loan and then you said it's paid off. If his credit is that bad, I'm thinking he did default (not paid off). He needs to settle this old debt.

He would benefit from some books and classes on money management. He needs to learn to seperate what he "wants" from what he "needs". I see the problem here not being the credit score he has today but his long-term tendency to manage money/credit poorly and to overextend himself.

Answer 4

You usually can't get something correct removed from your credit report - most companies that claim to do so are frauds and might just take your money and do nothing. Still, even with bad credit I think he can do better than 21% if he shops around more places for the loan.

Answer 5

he's getting 21% due to the age of the car. Get the car, make some payments (6-9 mo.), and refinance it. In the mean time, go to equifax, experian, and transunion.coms, and dispute the account. the lender will have to prove the delinquence within 30 days. most of the time they won't, and it will come off the credit bureaus.

I am a finance manager at a dealership, and I have done this for myself before.

Answer 6

He can try to get refinanced at http://www.lendingtree.com/.

As far as the student loan, he will either have to wait 7 years for the negative rating to go off or start the dispute process. He could go through a credit repair service to help him.

Answer 7

Shop around for a better rate (most credit cards have a better rate than that!). He is getting ripped off!

Only time can erase a bad debt, but his credit report should also show that he paid it off eventually. Twenty one percent is unreasonable!

Answer 8

Some companies are specialized in loans for people with a bad credit score.

Good luck !

Answer 9

Try apply at Capital One online. They have the lowest rates. Once approved, they will send you a check to use at the dealer. You can use that check to negotiate with dealer for lower rate because if you get a better rate, you can tear up that check and not owe Capital One anything. I took mine to the dealer to try to negotiate and, even before they ask me what rate I have, they flat out told me they can't compete with Capital One.

Good luck!

Answer 10

Nothing. Wait a year for his score to go up. Best advice is to go to a used car place and get a lower price car for now. Stay away from large car dealerships....negotiate total price not a monthly payment..