Credit Score, Auto Loans and Interest Rate?

Question

I just pulled my yearly credit report and my score is 648. A year ago I think it was 540, so it's jumped up quite a bit. I'm considering getting a newer used car (Mini Cooper or VW Bug) next spring once I have enough saved up for a small down payment.

I'm curious as to what kind of an interest rate I might be looking at and how much of a loan I could receive. Granted I'd rather get a new car, but getting a loan on a $19,000 car with mediocre credit probably isn't the smartest bet. :) This will be my first car and I want something that'll last me for a bit.

Answer 1

Suprisingly enough, if you have mediocre credit -- and 648 isn't too shabby, a NEWER car is your best bet-- banks hate loaning on very old cars on scary credit.

You could probably get in the 12% range with your score. By getting the car sooner, you will start building your credit now- -and maybe in a year if your score is higher you could refi and lower your interst rate.

Answer 2

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RE :Credit Score, Auto Loans and Interest Rate?
I just pulled my yearly credit report and my score is 648. A year ago I think it was 540, so it's jumped up quite a bit. I'm considering getting a newer used car (Mini Cooper or VW Bug) next spring once I have enough saved up for a small down payment.

I'm curious as to what kind of an interest rate I might be looking at and how much of a loan I could receive. Granted I'd rather get a new car, but getting a loan on a $19,000 car with mediocre credit probably isn't the smartest bet. :) This will be my first car and I want something that'll last me for a bit.
Follow 8 answers

Answer 3

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Answer 4

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Auto finance is what I do for a living and the correct answer is unless you get a pay for delete agreement which simply says that in return for your payment they agree to remove the accounts from your credit the only thing that will happen is your score will actually go down because when you pay them they will become current instead of old accounts. If the collection companies agree, get it in writing before you pay them a dime.

Answer 5

Newer cars are usually easier to get financed. Especially of you can get a rebate to help with your down payment. Ford recently ran a 0% program even for substandard credit borrowers.

Answer 6

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Answer 7

I hope this helps you:

Credit Score Explained
http://www.debt-loan-refinance-mortgage-credit.com/category/Credit-Score-Myths-Explained.html

Answer 8

Use your head and buy something that will still last be be a little more conservative! A used Honda or Toyota will give you more good miles at a much lower cost per mile and there are more bargains available because there are many more for sale.

Answer 9

It depends..

Answer 10

Not sure