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Posted in Auto Loans
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Question By
UpgradingMyLife

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Credit Score is 490, how likely is it that I will get a auto loan?
How likely will it be to get a approved for a auto loan?

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car loan approval

Helpful to 59 out of 64 people

490 credit score is really, really bad.  Someone will finance you for an auto loan, but be prepared to pay super high interest rates.   Which puts you in the poor house.  It's hard to move forward financially when you are locked into a crazy 5 year high interest loan on a crappy car that you over-paid for, because you have low income and a low credit score.  Please don't lock yourself into 5 more years of poverty.  My advice, save 1,000 or 1,500 dollars, buy an ugly car that gets you from place to place.   If the car has an unexpected mechanical failure (like the engine blows up or the transmisson goes out), then you can sell it to the auto dismantler for $500 and move on.   Maybe in a couple years, your financial position will improve, maybe get a new job, and you make credit card payments on time and credit score increases.   Then you could consider buying a used car from the dealer (again, keep the purchase amount low so that you aren't a slave to debt).  Hope this helps !!  (btw, nobody cares how cool you look in your car,  but   people look stupid  if they buy a car they can't afford)

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Reply by
ANT289

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Helpful to 14 out of 19 people

Enter Your ReplyVery, very good advice. So many truths spoken, I hope alot of people are helped by your commentary.

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9 People Helped

Helpful to 7 out of 7 people

PLEASE. My credit was so bad I couldn't have bought a bag of potato chips on time. My credit was like 430.  I live in Metro Denver, Colorado. I went to Schomp Honda and they hooked me up. My interest is 17% but I have no reason to cry because my credit sucked bigtime.  Hang in there- It can be done!

Reply by
shadysadek

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I did have this score and I went buy a car the company love to hunt ppl like us because they can get more money from low credit more than good credit so out finance should be 17% but those companies make it over 26 to 29%

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Helpful to 38 out of 43 people

Give Credit Pros a call 1-877-235-0324. Ask about their preffered lender program.. Good luck my friend.

Reply by
gcuzzi14

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Helpful to 4 out of 17 people

very good

Reply by
MasterGodEmperor

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Helpful to 13 out of 18 people

redguy411: your reply was great because it was direct, and gave a real phone #. Keep up the good work of helping people!

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Be careful when getting an auto loan

Helpful to 32 out of 44 people

Be really  careful when getting an auto loann with bad credit. many comapnies that will extend you credit  are incredibly shady... We had a nightmare about 8 tearsago when buying a used car from a dealership in Phx Az. Midway chevy saidf they would take care of finding us someone to extend us a loan .I had a suspended DL at the time but was going to be helping pay for the vehicle. We stressed that I should have my  financials included when seeking the loan but not to put me on the title .. The said they wouldn't put me on the title and our "first " paper work off the lot was in my husbands  name only. BUT when we got our stuff in the mail so we could get more than temp registration they had my name on it as they had lied to make the sale.  

WE couldn't register the vehicle  and Midway refuse to take my name off the title.. We found someone at the MVD    who helped us but it was a big  mess.

The loan company  were         legal loan sharks and  tried charging interest on interest charges and    late fees and all kinds of nonsense. We finally   read all about them online and   voluntarily let them repo the car  because they were never going to let us pay it off and some folks had their car repod EVEN after paying it off   so.... be really  careful ... Lots of people will want to loan you that money but most of them are just going to make your credit worse.

I would wait and pay cash until my credit was MUCH better to get an auto loan

Sorry just talking from experience.

Reply by
Mgnndfw

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2 People Helped
Helpful to 2 out of 7 people

You cant have your income included and not be on the paper work.  Otherwise, I'd like to include Donald Trumps financial records, please :).  Anyone can say this, but having your money considered for a loan means YOU are part of the loan

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Reply by
ANT289

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Helpful to 1 out of 2 people

What was your FICO score when this loan originated?

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2 People Helped

Helpful to 2 out of 2 people

I know someone with that credit score and he got approved for $15,000 at around 26%. BUT a week after he bought the car, they rescinded the loan offer and it was never finalized. Something about him being too low income or something. He had to take the car back and couldn't get approved anywhere else. 

Reply by
Top1105

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Also that was with $2,000 down. 

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1 Person Helped

Mrs

Helpful to 1 out of 1 people

Please stay away from prestige financial they will tear your credit up. Payed my car off never was late and my credit says it was a charge off!! Thank God I have all my financial statements. Dirty business practices at its finest

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10 People Helped

Want a car, but not best/no credit

Helpful to 4 out of 7 people

Contact JD Byrider auto dealers , they are known to work with customers who currently don't have the best credit rating or no credit rating, they have in store financing & do work with them to improve their credit score so they can purchase a car. JD Byrider has thousands of franchise locations across the United States. I just went thru them today myself. My credit rating is good (702)& was approved myself.Visit their website for more info:
JdByrider.com

1 Contribution
10 People Helped

Helpful to 10 out of 12 people

Roadloans.com will probably give you a loan but interest rates will be very high of course. Try Capital One Blank Check program too. Good luck!

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Reply by
lauravalerie

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Helpful to 19 out of 28 people

Please be careful with the Capital One blank check program. Be sure that they explain very carefully and clearly (and that you understand) the Loan-to-Value policy. I was approved for a Capital One blank check and the rep I spoke with on the phone failed to explain that policy to me. When I got to the dealership and was all ready to sign the paperwork on the car, I was told by the financing officer that because of this policy, I would still have to put down almost $2,000. Also, the program is very limiting in what you can do with the money - the requirements for the amount of the car, the year, the mileage, and the dealership you can buy from are very specific, so just be sure to read all the fine print and make sure you understand the way it works before you commit to use it. And if you decide not to use it, be sure to let them know - there is a penalty fee for not using it.

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Advice

The only way someone is going to finance you for an autoloan is if you have a big down payment. I would say atleast $5,000. Your interest rate is going to be through the roof at first. The bright side is that after you sucessfully make your car payment in full and on time for 2-3 months your credit will begin to improve. I would stay with your original lender for atleast 3 but no more than 6 months before you refinance out of your original loan and into a different one. You will need to make your payments on time and in full every month. And you may need to refinace two or even three more time over the course of the next year or two before you end up with a decent loan with an interest rate below 8%.

I had decent credit (low 600's) before buying a car 9 months ago. My original loan had an interest rate of 18%. I put $4,000 down on $20,000 car. I almost didn't sign the paper until I was told that I could refinance at any time. I waited 3 months before I refinanced with Capital One Auto Finance. I have been a Capital One customer for over 4 years and my accounts were in good standing. I was a little disappointed by the 11% rate that they offered me. But I accepted it. I have sinced refinanced again to 8.49% with Open Road Lending. The upside is that I now have a loan that is 10.5% less interest than my original loan. The downside is that since I have refinanced twice in one year I barely notice any difference in my principle balance.

Another option you might want to look into is if you have anyone who would be willing to co-sign for you. This would help you get into a reasonable loan.

1 Contribution
5 People Helped

460?

Helpful to 5 out of 10 people

Drive time will approve you for $20000....they only require $18000 down payment.

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