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I always had car loans but in the past few years I had two judgements put on my credit..which have been paid..One three years ago and the other 1.5 years ago. Both were for small amounts on credit cards that were old and I was stupid not to address them right away. Did a free credit report and two of the credit folks show only one and the other one shows both. I have been diligent on paying one of those credit repair cards for the past three years..the credit amount is small.. 250.00. I charge and then pay down every month. Also I have worked in the same job for 28 years..and my home is in my parents name due to a divorce. That is almost paid off. Do I have a chance on getting a loan? Would like to put 6000 down and finance the rest. Should I go to a dealer that deals with high risk clients and who are they? Also, during this time of unsavory credit I was paying for my sons k-12 school and paid for his college in full.

3 Thoughts on how do people with not perfect credit get car loans?
  1. Reply
    September 3, 2011 at 12:25 am

    Years ago when my credit was a mess, I saw a place every day on the way home from work… “We finance Everyone”!!

    I thought…”oh, DO you”?? Went in & ended up with a 1 yo car with payments of $ 335/mo. & 18% interest rate. Drove that car for 2 years & with a full year left on the mfg warranty….sold it on CL for $ 500 under what I owed. I was happy to get rid of it, it gave me 2 full years of good credit & that loan fully served it’s purpose. I knew I had to pay that price to begin my credit repair journey.

    Found an older car for 4k & drove away happy….

    Get what you can afford for payments. Don’t get the hottest thing on the lot. Make sure you can easily make those payments & never ever be late.

  2. Reply
    September 3, 2011 at 1:24 am

    It sounds that if you keep going the way you are, you will soon have perfect credit again. In the meantime, if you have $ 6k on hand, see if you can buy an older car for that much and not have to borrow at all. If you do need to borrow some to reach the car price, suss out what you will be charged by the dealer and also by your local credit union. Go for the one with the lowest interest rate and no hidden charges. Credit union is great because they don’t charge arrangement or other fees, the interest rate may be lower, they fix repayment amounts that you can stick to without hardship, it helps your credit rating, and at the end of the financial year, they also give you a dividend based on the amount of savings you have with them.

  3. Reply
    Dan B
    September 3, 2011 at 2:06 am

    They go to “Buy Here, Pay Here” dealers and pay extremely high interest rates >15% to as high as 30%. If you miss a payment, they may have a device installed that prevents you from starting the car; or they’ll come and repossess it. Then hold you responsible for the remaining balance on the loan anyway.

    NEVER finance through any dealership.
    NEVER take possession of the car until your loan is approved and all the paperwork is signed.
    ALWAYS arrange your own financing though your credit union or bank. If they won’t finance you, then you can’t afford the car.

    Take your $ 6000 and put it into a CU savings account. Then use that as collateral for the car loan. That will build credit. Sure, you’ll pay more interest by borrowing more money, but you’ll be better off than through a dealership.

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