I'm choosing to buy a car from a private owner and I need to find a loan that will have the lowest interest rate possible for someone that doesn't have good credit. I know I will have a high interest rate already, I just want the lowest for my situation. So I'm assuming I would have to go through a bank. Now, I just need to know what banks are willing to work with those that have not so good credit. ( young mistake ) And still let me buy from this private owner and not a dealer. I need all the help I can get, I really like this car. help please!
2007-03-26 12:52:38 · 4 answers · asked by Marianita 2 in Business & Finance ➔ Credit
My opinion (if you're in the US) is to try going through a credit union. Sometimes they are more forgiving then big banks.
2007-03-26 12:56:17 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First - always remember that you are the bank's customer. They make money lending money to people. It's no different than going to a store to buy something.
Second - Don't be ready to accept the first bank's loan. Shop around for a good deal. They will NOT raise your rate if you ask for 24 hours to think about it. If they say they will, don't walk away - run!
Third - Try a credit union also, but while they can be understanding, they have to protect their members' money. Be careful.
Fourth - Tell the seller that you are arranging credit with your bank. He/she doesn't have to know whether you went to one bank or five. The seller is happy you're buying the car.
Fifth - When you go to the bank, act like you don't need the money. Be upfront with them about the blip on your credit history, but downplay it. Tell them that it's in the past and you are on the right road now. Remember point number 1 - the bank will make a profit off you, so it's in their best interest to make the loan. And banks are paid to take risks when they loan money.
Last - very important - make sure the loan is for less than the car is worth. Check the NADA book or the Kelly Blue Book to get the value. If the car is worth $15,000 the bank will not loan you (or anyone else) $18,000. A rule of thumb is 80% of the wholesale value. So for your $15,000 car you should be able to get up to $12,000. Make sure the car you're buying is in great shape!
Always smile and answer the questions...
2007-03-26 13:13:10 · answer #2 · answered by Chef dad 3 · 0⤊ 0⤋
your best bet is through a credit union. establish a clean record for awhile and eventually they take care of loyal members. that's how I bought my first car from a private seller as a teenager with no credit history. in fact some credit unions have network of used car dealers they deal with therefore insuring a better rate and chance of them working with you.
2007-03-26 13:00:43 · answer #3 · answered by medan_discount 1 · 0⤊ 0⤋
If you can find out your credit score you can shop around starting with that. Just keep asking until you find someone who will lend you the money. For example, if Wells Fargo can't, they will probably recommend you to Wells Financial, who may them refer you to xyz company- call and ask around.
2007-03-26 13:05:13 · answer #4 · answered by nolimitsladies.com 2 · 0⤊ 0⤋