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Posted in Auto Loans
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Question By
JeauBear

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13 People Helped
Buying a car SOON - Advice about the one negative item on Credit Report? Thanks 2 all replies! ^_^
Hello! Ok, so recently separated and in two weeks, my ex-husband is transferring the loan of my vehicle in my name, so they're going to run my credit and determine my qualification for the remaining balance on the vehicle (roughly 15,600) I'm in CA, and here degrogatory items only stay on your credit report for four years. I have one last negative remark on my Credit Report that's due to fall off in November 2016. I was planning to just wait since it's so close but now with the new auto loan I have to take, I'm wondering if, from anyone's personal experience or credit pros, if it's in my best interest to contact a firm like Lexington to try to get it removed? Would it be cost efficient in terms of what I'd end up paying to get that item removed vs. what I could save over the course of the auto loan? Current scores ranging from 640-701 between three credit bureaus. ALL help and replies are greatly appreciated! I'm a bit out of my element here... Thanks! ^_^

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Negative information stays on your credit report for seven years.  I'm not sure where you heard or read four.  

Credit repair firms mainly exist to take your money.  

Most auto lenders use auto-enhanced FICO scores for decisioning, so if you have a good history of paying installment loans you should be fine as-is.  Also, since an auto loan is secured by collateral (the car itself) a car loan can be a relatively easy approval, assuming you aren't trying to borrow a lot more than the car is worth.

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Helpful to 1 out of 3 people

Excellent answer CV!

Reply by
JeauBear

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Helpful to 8 out of 9 people

Hi cv91915! Thank you for taking the time to reply, I really appreciate it! Oh, and for in CA accounts that have gone into collections and the like only remain on your credit report for 4 years, actually being one of the lowest across the nation (unlike Texas which is 10). I got the info from the government provided Credit Info website... But anyhow, I was wondering, since I'm no longer going to go through a credit repair firm (thanks to you ^_^), how negatively the last remaining item on my Credit Report would impact the rate I'd qualify for? All my bills and credit cards have been paid on time since, but I've never had an installment loan in my name before. Will that affect my ability to get approved? Thanks again for your time! Have a great day!

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different scores

Helpful to 5 out of 7 people

i have a 580 transunion and a 642 equifx, which one is more likely to impact my chances on getting an auto loan

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Auto loan

Helpful to 5 out of 8 people

My question is this, we have a credit score that is very low 609! How difficult will it be to get an auto loan ? And do you think we will be paying a ridiculously high interest rate because of it? 

Reply by
Ronni09

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I have a very low credit score and was able to purchase a vehicle in my name without a cosigner. So it's possible. Im in tn so things are different here.

Reply by
MsAirman

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Yes you will be paying higher intrest than someone with a 670+ credit score. Now a days, there is a wide range of banks who approve people ranging from bad credit to perfect credit.. 

The only disadvantage of having a lower credit score is that the banks most of the time may require a larger down payment for the loan you are trying to get approved for. (typically $3,500 and above for down payment)

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New car loan

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Will it be hard to get an new car loan with a credit score of 630-633 and will there be a very high interest rate ?

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Mike

Helpful to 1 out of 1 people

I just got a car loan yesterday, and my score was 656. I found a car that is a 2002 and only 82k miles. The loan is for 4457.00 with an interest rate of 8.4% . With 36 months to pay the monthly payment is 139.46. I am happy with the results and can still work on getting my credit report back to good standing without being stuck in limbo. I realize that the car will be worthless when it is over, but I have a ride I can afford.

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car purchase

income score dti Ltv are major determinants of auto approval.please review 5 c's of credit when thinking of auto buying process and just fyi you typically want to stay in range of 10-12 % of your income as far as assessing your affordability.

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New car lease

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I got a lease almost 2 years ago but I got a bad deal and I'm looking to breaks the lease and get into a new lease, but my husband and I filed and was discharged from bankruptcy in chapter 7 in march 2016. My credit score is currently 660, do you think I will have a problem getting the lease? 

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Reply by
roy2ohio

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Odds are highly against you getting a new lease.  Leases are usually reserved for people with better than average credit.  If your Chapter 7 was discharged say 7 or 8 years ago and you established new and good credit, you'd have a chance.  But because your BK is very recent, I wouldn't count on it.

Still, there is the possibility of standard financing.  However, don't count on finding 0% or 1% loans.  Most dealers work with lenders who are willing to take risks such as yours.  Typically, you'll be told how much you'll need down, and how much you'll be allowed to finance.  You may also be directed to a car that the lenders feel are appropriate to your needs.  What that means is that if your looking for a car to get back-and-forth to work in, you'll probably end up with that Hyundai instead of that Camaro SS you had your eye on.

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