I have bad credit after 3 years of unemployment but now I'm working with good pay. I've been working for 3 months and in need of a new car.
2007-09-19 01:45:18 · 7 answers · asked by teds 1 in Cars & Transportation ➔ Buying & Selling
no ..get what you can afford if you have to make payments till you get the credit reporting good then get a new car,,dealers make the money on the interest fees not the cars
2007-09-19 01:56:56 · answer #1 · answered by goat 5 · 0⤊ 0⤋
It's good to see you back at work after that long period of unemployment, but let me tell you this, the last thing you need after only 3 months on the job is a new car loan that'll keep you tied to payments for 5 maybe even 6 years.
Forget a new car. You aren't in the position to be thinking new car yet. Give it time. Go out and look for a good, solid used car that is inexpensive to operate and will cost you 60% - 80% less than a new car. You can get a lot of car for $5000 if you shop smart.
Even with poor credit you should be able to borrow that $5000 and pay less than $175 a month for only 3 years. The average new car loan today will run you over $450 a month for 5 years, IF you can get it financed.
2007-09-19 02:16:47 · answer #2 · answered by mccoyblues 7 · 2⤊ 0⤋
If you have bad credit you will get a high interest rate, even if you earn a million dollars a year and have millions in the bank.
The reason is because if you've got bad credit then you've probably got a history of not paying those who you owe and they're going to think of you as a high risk customer who is likely to default on the loan.
To be able to make a profit on those who tend to default they have to charge a higher interest rate.
2007-09-19 02:04:00 · answer #3 · answered by bestonnet_00 7 · 0⤊ 0⤋
The new job won't help you much, if any. Your bad credit history will be the most important factor in getting your loan. Expect to still have to pay a high interest rate, if you are approved at all.
2007-09-19 02:40:22 · answer #4 · answered by Anonymous · 1⤊ 0⤋
First, congratulations!!
The next thing is to get your credit report. They are free once-per-year. Go to www.myfico.com and get one there.
The most important thing is your FICO score. It will tell you how good of a risk you are. A LOW number = HIGH RISK, a HIGH number = LOW risk.
But, the short answer is, that lenders will go almost entirely by your FICO score to determine whether you'll get a low rate, regardless of your current situation. Things your credit score looks at is bankruptcies, how long you've lived in your current address (1+ yrs is better), if you've paid on time, if you've paid in full, etc. Essentially, you have to work hard to improve your credit score. 3-months isn't long enough to erase 3 years of bad money management. It will improve your FICO score slightly, but not enough to really impact your current rate
2007-09-19 01:55:43 · answer #5 · answered by This is SPARTAAAA! 5 · 1⤊ 0⤋
It depends on a number of different factors. Keep in mind that a great way for you to lower your loan payment is to save up and put a large down payment on the vehicle.
2007-09-19 06:31:51 · answer #6 · answered by longtuesday 2 · 1⤊ 0⤋
Bad credit and low interest rate. They dont' go together.
2007-09-19 03:05:31 · answer #7 · answered by jay 7 · 1⤊ 1⤋