This topic contains 10 replies, has 7 voices, and was last updated by Anonymous 8 years, 5 months ago.
- May 5, 2011 at 4:14 am #202948
My husband and I are buying a car jointly, but we don’t have great credit because we recently purchased a house and various things that made our credit take some big hits. Is there a particular score that they look for when you buy a car?
- May 6, 2011 at 11:44 pm #264062
As a former finance manager at a car dealership, I know a bit about this. Put in the most simple way, there are many many lenders out there who specialize in “sub-prime” auto lending. They usually require a score above 500, but there are other lenders that will lend money for a car no matter what your score, if you have enough cash down, and the LTV(loan to value) of the car is in line. But keep in mind that the lower your score, the higher the interest rate. A lot of states also have max interest rates for the different loan terms, i.e. 60 or 72 months. My suggestion is to check with the bank that you use first and see what they are willing to offer. Especially if you have a great banking relationship with them! Good luck
- May 14, 2011 at 1:33 am #426244
ACtually, the reason for this is fairly easy to explain. History shows, that if something happens that causes a person to be unable to pay their bills, the overwhelming chances are that person will continue with whatever activity (overspending, etc) caused them to get into financial trouble.
SO, about 80% of the time if a person goes bad on the loan, if you refinance to something the person can afford now, chances are they will be back in trouble within another 18 months or so. And the WORSE thing a banker can do is give a delinquent buyer a deal, then the bank loses money on them all over again. In other words, that banker has to take a huge personal chance on you. It is a quick way for the banker to become an ex-banker.
So, it is safe for the banker to end the problem – by strongly encouraging the borrower to cure the loan, either by refinancing through someone else or bring the payments current. If he does, he is a hero. If he doesn’t, it wasn’t his fault, but yours. And if he gives you a break and you burn him, he’s unemployed.
- May 14, 2011 at 2:00 am #426245
Banks are often orgininators of loans and not the investors henceforth when the loan is orginated they are bundled together 5million for instance and bought by a particular investor and that particular portfilio conforms to a criteria that is agreed upon by the investor and the bank who orginated the loans. Modification of any portion of that portifilo often would only take place if that portfilio has an epidemic of defaults not one or two.
hope this help pecola
- May 14, 2011 at 2:12 am #426246
The lenders took it upon themselves to do some creative financing and that is why we are in a mess. If Buyers were allowed to refi with a loan of their choosing how would that benefit them? Most of them still could not afford their loans because there is always something better to do with the money. They would not be happy campers on either side because lenders would never be paid and the homeowners would never get to keep their houses with a debt hanging over their head.
- May 14, 2011 at 2:55 am #426247
cause its not in their best interests..
- May 14, 2011 at 3:27 am #426248
because the banks want to make money, if they were fair to the people they would go out of business, they want your property too
- May 15, 2011 at 9:02 pm #276397
Actually, having a house can really boost your credit. Have you checked out the number? Anything over 650, is good. You’d be surprised what you would get approved for when you own a home.
- May 16, 2011 at 12:51 am #276514
There is no particular score one needs to obtain credit. Many factors are involved, such as, selling price, money down and what your credit looks like overall. Get a copy of your credit report, so you are prepared. I’ll be more than happy to help if you contact me. I won’t try to sell you a car. [email protected]
- May 17, 2011 at 7:57 am #278766
- June 9, 2011 at 6:57 am #287425
No, you’ll just get a higher interest rate on the loan, which will inflate the payments if you don’t put down a sizable downpayment.
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