What would you suggest for her to do? She wants a car for about $10,000-$15,000 no extras. will she be approved for credit with the cash she has? In the past her car loans have been paid, but the credit cards haven't, there has been a problem with those. She's recently has just recieved a few good marks on credit record for recent payment on school loans. Any advice or ideas for her? Could she be turned down?
2007-03-15 01:42:15 · 4 answers · asked by JBWPLGCSE 5 in Business & Finance ➔ Credit
Just about anyone can get a car loan today, even with bad credit. What her bad credit history will do is bump her rate up. If her debt ratio's are too far out of wack though, she could get turned down. This ratio is the amount of debt she has vs her disposable income. As an example, if her total monthly debt is 75% of her disposable monthly income ($750 of $1000 lets say), they will not approve her for the loan because an additional payment of $350 a month leaves her in the red. The down payment of $5,500 which is about 25% or a little more is very good, and may help to get a better term provided her debt load is not high. Smart choice in cars, Hondas are an outstanding value. Hopefully she can get rid of the credit cards, and learn the lesson that they are not a good thing.
2007-03-15 01:56:19 · answer #1 · answered by Sane 6 · 0⤊ 0⤋
There is a free website at http://www.getbadcreditcarloan.info that has a list of finance companies that approve loans to people with poor credit ratings. It also has free advice on how to improve your credit rating.
2007-03-15 10:23:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
As long as your friend meets the other requirements of the lenders as far as income, debt to income ratio and budgets for the payment? There are lots of lenders out there that buy equity deals. She will pay a high rate but it will help her to re-establish her credit.
2007-03-15 09:09:26 · answer #3 · answered by ? 7 · 0⤊ 0⤋
she MIGHT be able to finance at a really big dealership. it depends on where she lives. otherwise, shell have to go to a smaller used only lot that does in house financing. maybe she could look at kia instead of honda. they are more lenient with credit issues.
2007-03-15 08:47:26 · answer #4 · answered by Anonymous · 0⤊ 2⤋