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Question By
samshark

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What's Min Credit Score To Buy New $20-$25k Veihcle WithOUT A Cosigner
10 years Ago right out of college, i ruined my credit in every way imaginable. for the past 5 years i have been working to improve it and last 3 years paying off student loans without missing a payment, my credit score is hanging in the 639-656 range. i'm now making about 50k/year, but with my very bad history, can i get a new veihcle loan? cars i'm looking at are in the 20-25k range or do i HAVE to have a cosigner?

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Best Response Chosen by   Profile Image samshark
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Samshark, I just bought a new Prius last week. Toyota Financial has a 0.9% APR available to Tier 3 or greater. My credit score on here is in the low 600s, Toyota put me at Tier 2. The cutoff (on the low end) for Tier 3 is 620, so it must have been an auto enhanced score. I got 26K financed at 0.9% for 60 months with no cosigner or down payment.

Hopefully this helps.

FYI, 4 years ago, my credit was terrible and I was offered an APR greater than 16% on a 16K car. So, even with awful credit, there will be someone out there willing to finance you (Capital One, some online banks).

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Samshark, I just bought a new Prius last week. Toyota Financial has a 0.9% APR available to Tier 3 or greater. My credit score on here is in the low 600s, Toyota put me at Tier 2. The cutoff (on the low end) for Tier 3 is 620, so it must have been an auto enhanced score. I got 26K financed at 0.9% for 60 months with no cosigner or down payment.

Hopefully this helps.

FYI, 4 years ago, my credit was terrible and I was offered an APR greater than 16% on a 16K car. So, even with awful credit, there will be someone out there willing to finance you (Capital One, some online banks).

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New car buyer

My credit score on ck is 671...i wanna put 5k down on a 20k-23k car. Can i do that without a co signer and have low monthly payments?

Reply by
julieth27

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You should be able to without any problems. I was able to purchase a brand new Nissan Sentra last year in April without a co signer and just 1K down. My credit was in the high 500, low 600 so I couldn't image you not getting approved. I was told that 650 and above is typically a good credit score to get better rates and etc. My payments are 437 though which is high now that I'm a year in, but in the near future once I get my score back up I will trade it in or refinance. Hope this helped and good luck! 

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 thank you matman1490 for your constructive response unlike keesdewit who is apparently either jealous that i now thank god can afford it or just plain bitter about life.

i do have a question though, so if i am now making $4,000/month take home, my expenses for everything including food and bills cannot exceed 1440, ie 2560 saving per month, that sounds a bit outragous to get approved for a car loan that would have payments of $300-$400 per month max. i am able to do up to $3000 down payment as well as possible trade in worth $5500 or probably give me $3000-$3500 for it. i don't have a mortgage, i rent, 540/month, 300 in revolving payments, and bills about 200/month, so realistically i should be approved, just wanted to without a cosigner. didn't know if anyone outthere knew what the cutoff was for credit score or income vs bills that you would be approved on your own!

Reply by
lintfreefun

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While not the most eloquent I don't think Keesdewit was being bitter or hating on you.  We're all on here to monitor/improve our credit standing but each of us for different reasons.  Some just want a higher score for the "what ifs" of life and others want to use it to buy shiny new cars.  Cars are a depreciating asset, especially new ones!  You take it home for a month or two and try to sell it for close to what you paid and it's probably not going to happen.  On the other hand, a well maintained car that's 3-4 years old costing about 10-13K is a safe bet  and you'll get to keep even more of your 50K each year instead of sending it off to a finance company.  To many a new car still means you've "arrived" but to the growing financially wise it means many other things (impulsive, financial illiterate, etc).  Also, if you can take that 10K to an auction you'll get even more car for your dollar versus dealer used or even private sale.  Good luck and I too am hoping you decided against the new car and went with a car that's new to you :)

Want to get rich while still driving relatively newer cars check out this Dave Ramsey link: http://www.daveramsey.com/article/drive-free/

It opened my eyes to new possibilites like letting our money work for us. 

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A lot of banks also look for job stability also when they are going to be giving you a loan also plus bank statements showing your monthly expenses including rent and income every month

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Also lot's of deals on lease vehicles right now!!!!!!!!!!!!!  Good Luck.

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well alot depends on your debt to income... if what you pay for rent mortgage and expenses directly related to keeping a roof over your head, ( rent mortgage, taxes, insurance, and utilities) should be no more than 28% of monthly take home, and your total expenses, (EVERYTHING you spend monthly on bills, loans credit card, food, car expenses the wohle thing) should be no more than 36% of your monthly take home.

you could be making a milion a yr, but with borderline credit, if your DTI percentages arent there, you WILL NOT get a loan...

what down payment do you have.,.. if you are looking at a $30K car, you'd better have at least 10K in cash down plus your trade, or youre not gonna be apporved either.

your score is low but you may score a new loan, if you have the other 2 areas covered..

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I do not understand why you want to spend 20K or so for a car. This is outrageous. Come back down to earth and pay cash for a used car.

No one will loan you money. You are a huge risk. It is a blessing that you do not qualify.

Reply by
BRAVOBEJ88

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KEESDEWIT,MIND YOUR OPINION,LIKE YOU MIND YOUR FIBER....THANKS ANYWAY..BUH BYE

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