In what range would my interest rate most likely be for financing a 30k used car? My credit score is......?

Question

My Experian is 634, Equifax 627, and Trans is 620. I have a few late payments that are on my credit report, most recent late payment was in Jan 07. Prior to this the latest late paymt was on Aug 06. I have a secured credit card $200 limit which I use every month and always pay it off at the end of month. A Macys card with a $300 limit with zero balance which I also use often and pay it off at the end of the month. I have two installment loans one for $241 a month which I still owe $4000 on, and one for $93 monthly for $2000 which I still owe $1700 (just opened it). I also have a student loan which I owe about $3000 and pay $50 every month. I do not have any accts in collections at the moment. I always keep no more than 25% bal on my accts. My history is about 3 yrs old. Im thinking about financing a used car for 30k and would like to know based upon my credit details/score how high would my interest rate be? I don't want to get a high rate. Professl in the field or Persnl Exp Pls Help.

My question is not will I get a high interest rate but in what range would the interest rate be? I know I dont have perfect credit and the chances of getting a very low interest rate is impossible with my credit history but what range would I most likely receive? For example: 10-15%, 15-20%...etc. Thanks.

Answer 1

Since the median credit score is 723, you are not in a good position to get prime interest rates. You commented you don't have any accounts in collections "at the moment" which seems to indicate you did in the past. So you start with some red flags. The rest will depend on your income to debt ratio and time on the job, along with other factors such as do you own property or rent, that type of thing.

Also, 25% balance on your accounts is way too high. To quote the credit industry, "For FICO High Achievers the ratio of revolving balances to credit limits is 7%, on average."

I'd suggest fixing the vehicle you have now to last a bit longer, and doing some work on your credit score, or pay the high interest rate if you absolutely HAVE to get it now.

Answer 2

A lot of this depends on the car, the term, and the money down. But considering what you have alread written about your credit, i think, best case scenario would be 10-14%.

Again, some banks are more agressive than others. I suggest joining a credit union, go to: http://www.creditunion.coop/ to find one. They have very low rates compared to regular banks, just get pre-approved before buying the car. I would not be suprised to see a credit union offer you 7-8%.

Answer 3

perfect credit score is above 725 -- your 620 // 634 range is very iffy that you can get another loan until your debt ratio is down to reasonable --- keep driving and pay-off the debt and wait for a new car .... a secured credit card means that your credit id so poor that you have to put up collateral to have the card ------ these are true facts and even if you do not like what i am telling you -- it is the truth ....

Answer 4

Probably around 12% or so on a 36 month note. Higher on a longer one, maybe 14% - 16% on a 5 year note.

Answer 5

you are looking at 14 to 21 percent if they can get you bought