i had the credit cards since i was 18. I'm interested in buying a car. My credit score is 720. What are my chances of going to a dealership and coming out with a car.
2007-12-18 15:31:42 · 8 answers · asked by Mr Scott 1 in Business & Finance ➔ Credit
Excellent. You are considered a worthwhile credit risk...meaning you are no risk at all. 720 is among the highest in the country, so when you do go to the dealership, make sure you strike a hard bargain. You can get a great rate anywhere and don't let them tell you otherwise.
Hope this helps.
2007-12-18 15:39:12 · answer #1 · answered by E.T. Barton 5 · 1⤊ 0⤋
everyone here is saying you have a great chance of getting financed... but i work with a lending company.
Honestly, the score you have access to and the score the lenders will see may be totally different. But I doubt it would be that different - it would only take, maybe, a 500 to be able to finance a car. Can't say what your rate would be, then, though! lol.
One thing you didn't mention, that they WILL look at - is... are your cards maxxed out? and how much availability do you have right now? Yes, your income is important, too.
For example, if you have credit limits that amount to $20k, but you have balances that amount to $19k, that means you're maxed, and they don't like to see that. What happens if the car breaks down? If you had availability on your cards, you'd have lower payments on them, as well, and if you needed to, you could use the cards to pay for repairs.
On the other side of the coin, if you have $20k in credit limits, but only, say, $500 total balance on all of those cards... that means that sure, you can handle balances of $500... but what happens if you get charge happy and suddenly max your cards to $20k? Your minimum payments would go up, and you'd be less likely to be able to afford a car payment.
Idealy, you would want about 20-50% of a balance compared to your total limit - even if it's just on one card. If you have less right now, and don't want to spend any more - I'd suggest to reduce the limit on one of your cards, so the total balance compared to the total credit limit is around there.
Remember, if you close an account... your great score will falter, because the bureaus will no longer be able to count that credit history with that account any longer. It will still count, but... not as much as if you left it open.
Also consider getting a down payment - $500-$1,000 should be fine - a down payment makes you look really good to the lender, and can wrangle you a lower rate and better payments at the same time.
I know of one place you can apply for an auto loan well before you even shop for a car - www.gemoney.com - what they do is approve you for a set of rates (depending on how you use the check - can be used at a dealership, car lot, buy a car from a person, refinance an existing loan, etc.), give you a blank check, and send you on your way. If you find a great car at a dealership, you can write the check for the car, plus you can also include tags/tax/title, any upgrades you want... like new tires, window tinting, new stereo, new paint job, etc. in the price. By doing this, if the dealership/car lot has any "cash" incentives, such as a lower rate (you can definitely haggle way better if you're paying them cash - and with this check you ARE paying cash, to them), a cash back bonus, stuff like that.
Best of all, if worse comes to worst, and you decide not to even use the check - you don't have a loan. This is the best way to get financing I've ever heard of - loan amounts are $7,500 - $100,000, so you know ahead of time how much you can write the check for. If anything, you can go to the dealership, check in hand, and if they approve you on the spot for a rate lower than what the check gives you, then you're free to get their financing!
2007-12-18 16:14:15 · answer #2 · answered by Carlii 4 · 0⤊ 0⤋
You shouldn't have any problems getting financing. Just don't buy more car than you can afford.
Also, don't take the car off the dealer's lot till all the financing is actually approved. It's a common practice for dealers to write up really low interest deals and let you take the car. Then when you can't get approved for that really good deal, you have to sign new paperwork for a not so good deal or bring the car back.
You might want to check with your bank or credit union and see if you can get pre-approved for a car loan. That way you can negotiate a better deal on the price.
2007-12-18 15:39:19 · answer #3 · answered by bdancer222 7 · 1⤊ 0⤋
if you have a job that pays more than 10 bucks an hour and you owe less than 4,000 on those credit cards i would say your chances of leaving with a car are VERY GOOD> a 720 is grade A credit.. I would look to eliminate another one of those credit cards and keep it at three.
2007-12-18 15:53:51 · answer #4 · answered by the d 6 · 0⤊ 0⤋
Well, most dealerships will give you financing regardless of your credit score. It's a matter of the APR on the loan. I would suggest going to your bank and getting a loan through them. You will come off with a better interest rate more than likely.
2007-12-18 15:36:33 · answer #5 · answered by kevin h 5 · 2⤊ 0⤋
Pretty good. Your credit score is good and high and if you've never been late you have good payment history. It also depends on what kind of car. Porch/Land Rover etc high end cars are harder to get financed.
2007-12-18 15:35:45 · answer #6 · answered by Dancing in Misery 4 · 1⤊ 0⤋
Your chances are good as long as you have sufficient income to qualify for the loan.
2007-12-19 01:55:02 · answer #7 · answered by Anonymous · 0⤊ 0⤋
very high....but you might end up with a high APR if you don't have a job..but if you do then it's all good!!
2007-12-18 15:34:45 · answer #8 · answered by Chris 3 · 2⤊ 0⤋