I want to buy a new car but my credit score is 660.What kind of interest rate would I get?

Question

I had credit problems in the past but its been two years now since I graduated from college and now with a good job I am trying to fix my credit. I pay off already most of my old debt that was in collection. I also have one judgement in my credit report. Should I wait a few months till my credit score is better? My credit score have improved a lot in the last two years. I also check my VantageScore and that is an F or 595. Do car dealerships check both credit scores FICO and Vantage? The car I want is a Honda civic and my income is around 40 k

Answer 1

I wouldn't buy a new car. Who needs the payments? I'd save up and get some basic transportation until my credit position gets better. But I have no doubt a car dealer can get you in a new car. Your interest rate won't be great (I'd guess 9 or 10%) but you can build up your credit score provided you make your payments.

Answer 2

Once again people it's not all about score. Your score is based on the following:

1. Payment history 35%
2. Time in bureau 10%
3. New credit 10%
4. Type of credit used 10%
5. Debt to income ratio 30%

Banks look at the following; how much are you trying to borrow in relationship to what the car is worth by N.A.D.A., term of loan, age of vehicle, miles on vehicles, how much are you putting down, how much do you make, how long have you been on your job, how long have you been at your residence and do you budget for the vehicle you are trying to buy.

In my 7-plus years in the car business I can't tell you how many people I have seen with scores in the 700 range that could not buy a vehicle because their score was based on a credit card with a $500.00 balance paid 20-times as agreed and a couple of student loans.

As you can see, there is a lot more involved than just score.

Having said that, I would never buy a new car. They drop in value 50% in the first year. Buy a used car that someone else has taken the hit on.

Dealers and banks only look at FICO scores.

The only way you will ever know for sure is to go to a dealer and try.

Answer 3

They check your FICO score.If you can get a co signer then it would make things a little easier. I would also think about getting an American made car.I have a lower score then yours and I was able to get a Chevrolet Cobalt for only $350 a month and that's without a cosigner.American companies are easier to get financed through.Just be careful when you do buy a car-a lot of dealerships will let you take the car home and then call you back and say you were not approved and you have to take the car back.Good Luck!

Answer 4

Yes, you'll be able to purchase a car. You'll have to shop around for the best interest rate. This site might help you to get an idea about what type of interest you would get based on your credit, income, etc. Have fun shopping! http://loan.divinfo.com

Answer 5

Car dealers want to sell cars. They will try to make you happy.