I just got turned down for a loan at Chase and I need to take out a loan for $13,000 to buy a car from my friend. I have a credit score of 670, pay about $450 in rent a month, make about $400 a week, and still owe a few hundred on my two credit cards. Is there any place I can go that will be more likely to approve a loan for me? And, is it still possible for me to get a descent rate?
2007-10-04 02:47:35 · 0 answers · asked by Todd M 1 in Business & Finance ➔ Personal Finance
You may want to try talking with a local credit union. Because credit unions exist for the benefit of their members, you often can get better loan rates and terms than with large banks. Even with excellent credit, I would have paid at least 2% more interest on my car loan had I gone with Chase rather than a credit union.
Credit union membership can be very easy to obtain. More and more credit unions are being set up with membership in a broadly defined geographical area. You may have to invest a small amount (usually $5) into a savings account.
You might also take a closer look at why Chase declined you. For example, if there is derogatory information in your credit history, ie bankruptcy, collections, this may impede you from getting a car loan for a set period of time. Another factor may be the amount of payments that you are already making. A bank will evaluate you in part on how much monthly debt you have in comparison to how much monthly income your make.
If you can't get approval for a loan through a bank or a credit union, then you might look into person-to-person lending. You may pay a higher interest rate in this arena, but there are lenders willing to overlook the factors that a bank cannot. One example of a company that facilitates person-to-person lending is prosper.com.
Finally, or maybe firstly, consider your own financial situation. Do you "need" this exact car at this exact time? If you are stretching your budget, and banks are refusing your requests, this might indicate you have other financial issues that you should resolve first.
2007-10-04 03:03:24 · answer #1 · answered by Freddie 3 · 0⤊ 0⤋
Loans For Fair Credit Scores
2017-01-04 08:30:38 · answer #2 · answered by ? 4 · 0⤊ 0⤋
670 is an average score.
I don't think your credit is the problem though, but what your debt/income ratio would be when you buy the car.
A credit union is definitely your best bet. They will be the most likely to lend you money and will offer the best rates.
Many lenders will not let you take out an auto loan for more than 50% of your gross annual salary unless you have spotless credit or a very low debt/income ratio.
Based on the numbers, the lenders would say that you can afford about a $10,000 car.
2007-10-04 04:39:50 · answer #3 · answered by Stupid Flanders 7 · 1⤊ 0⤋
Todd ,
Credt Union is Your Target How ever I advice You to reduce
the size of loan coz this is really too much , if you Need more
choices offers and Facilities @ cheap low rates go to Only
Best Deals , I am afraid I cant post the site link here so open
Yahoo and type :
Only Best Deals
now in search results the first line a site called Only Best
Deals open it and check the right green titles about Loans ,
listen Todd , You may use the top search box there which
must lead you to the Best Loans Offers to compare between
them . . . well I Hope This Help You .
GOOD LUCK .
2007-10-04 03:56:20 · answer #4 · answered by S a l m a 2 · 0⤊ 0⤋
Try a credit union. That is a lot of money to spend on your income so it might be hard to get a loan that size.
Buying a cheaper car would leave you more in your budget for important goals like education, a home and retirement. Tying up your entire budget to pay debt will restrict your freedom.
2007-10-04 02:55:00 · answer #5 · answered by shipwreck 7 · 0⤊ 0⤋
Beware of advance fee loan scams! These are "companies" who will pretend they are able to give you a loan with bad credit or when others have turned you. Sometimes they even have a web site that looks "real." They offer you a loan, but tell you that b/c your credit is bad, they will need a few months of the payments up front as "security." Except when you pay that, you will never get the real loan because this is a SCAM and against the law. Never give your social security number to anyone but a legit bank. This is a terrible practice, because it preys upon people with poor credit or little money, looking for options. You are better off trying to get a co-signer with good credit and a good income to help you secure your loan through a reputable financial institution. But watch out for these advance fee loan scams b/c when you start searching around for "loans" and "poor credit" these are the types of things you will stumble upon - it sounds good but is a SCAM. You will NEVER have to pay upfront for a loan.
http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm
2007-10-04 04:21:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I think a Credit Union is the best way to go as others have pointed out. There are a lot of them that now allow you to join as a member just by where you live. I found 3 Credit Unions I was able to join here http://usacreditunions.com. Good Luck!
2007-10-04 04:02:32 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Try Prosper.com.
You can make up any kind of sob story you want. Then when you get the money Prosper does not pursue you if you default. Check it, I have lost a ton of money there and am considering getting a loan and defaulting.
2007-10-04 03:15:07 · answer #8 · answered by Anonymous · 0⤊ 0⤋
13000 Loan
2016-11-13 04:06:44 · answer #9 · answered by graneau 4 · 0⤊ 0⤋
you're trying for too expensive a car for your wages,especially if $400/week is gross pay - look for a cheaper used car
2007-10-04 02:57:12 · answer #10 · answered by Anonymous · 0⤊ 0⤋