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Posted in Auto Loans
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Keev31

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Need some advice on getting a auto loan
I'm in my early 20's. Wanting to get a auto loan. Got denied multiple times. So I desided to check out credit karma and my credit scores. Noticed I had a 517 credit score, because of some accounts in collection. Started paying them off and got a credit card(my only credit account.) Collection accounts have been removed. Now I have a credit score of 665.

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I would work on building your credit first and put the auto loan off for a year. Do you only have one account on your credit reports? If so, that isn't good. In addition to that, if it is not very old that is not good either. Also, most auto lenders will use a version of FICO scores, usually an auto version, so you should check to see what your FICOs are if you haven't yet (if you've developed FICO scores). Getting a loan for that size will be very difficult if not impossible. Being that you have no previous auto loan history you may have trouble getting financed for that much. From what I have read, most lenders do not feel comfortable issuing loans over 20k to someone with no auto loan history, I am sure not all lenders have that cap, but I believe that many do. At the point you are at now, you would probably need a large down payment and cosigner. If you really want to try to get an expensive auto now (which I do not recommend) look for dealerships that advertise to work with all credit situations, but don't expect good deals or low rates. I know this is not what you want to hear, I've been there, be patient and get credit built up and money saved for down payment. There is a ton of info on the net on how to build credit, start reading right away. As for the recommendation from Johnny on Capital One, I would say that you need to understand that Capital One only works with certain dealerships and from what I've found from researching before is that most of those dealerships are outrageous on prices.

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One way is to try get pre-qualified from Capital One, it's a soft inquiry, you don't have to actually use it, just to see if you will get approved or not, if you got approved? What's the max loan amount and interest rate, then you can better gauge where you stand. It will also give you something tangible when you walk into dealership, you aren't totally in their mercy, when they tell you the best they can do is 15% interest rate and you were approved by Cap1 at 10%?, you would know if they are BSing you or not, you might not know that without the pre-quals.

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Also I make 35k a year looking to get a 30-40k loan. 

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So would you recommend me getting a few other credit cards, maybe a small personal loan, and get a auto loan that's for considerable amount less like 10k. If I don't got a co signer?

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