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Posted in Auto Loans
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N0m4d

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Will I have a hard time finding a decent rate on my auto loan with a 675-700 credit score?
At the moment, all 3 of my credit scores are at 675. I have a secured credit card from Bank of America with a $4000 limit. I keep the utilization at around 15%, but it will be under 10% for last month and all months to follow. This card will be a year old in April.

I intend to finance in May. I will likely have about $6,000 to $8,000 to put down and want to finance around $25,000 on a used Lexus. I make around $70,000 per year with overtime ($50,000 without)

I have a charge off on my credit from 2010. It was from an auto loan. The only other negative is a cell phone bill which has been recently paid and is reflected on my credit report. I'm expecting my scores to be close to 700 by May.

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Just an update since nobody bothered to give any assistance;

I was declined for a pre-approved loan from Bank of America and Wells Fargo (not enough credit history and the chargeoff hurt me). However, I was approved from Carmax Finance for any vehicle they had for sale with a APR of 6.9% for 72 months (5.9% for 60 months). I purchased a Lexus RX350 with 44k miles. It has Navigation, HID lights, Backup camera, 12 speaker audio, seat memory, rain sensing wipers... nearly all of the options (missing AWD and HUD). I had it transferred from a different store to my local store for free. It looks and rides like new.

I also purchased an extended warranty. After my down payment of $5k I financed about $26k. My payment is $450 per month and I intend to pay off the loan within 2-3 years. There's no penalty for early payoff.

Roadloans pre-approved me at a APR of 18% and a max vehicle value of $22k... I'm glad that I tried Carmax... Otherwise I wouldn't be driving a Lexus equal to what I now have.

I was also pre-approved through Lending Tree at a local Nissan dealership. But they said I was only pre-approved for $20k and I didn't bother finding out what the APR was because I was already turned on to Carmax before they contacted me. Then they were constantly calling me and emailing me until I told them I already made my purchase... It was like sharks with blood in the water. I had the General Manager, Internet Manager, and 2 other salespeople contacting me daily... To which I rarely responded. I dislike feeling pressured.

I've read a lot of bad things about Carmax, but my experience was completely positive and they did not pressure me at all. It was also the shortest time I have ever spent at a dealership buying a car. Counting my test drive and them cleaning up the car for me, I was in and out in 90 minutes. I even had my plates on my Lexus with 2 years until the registration expired, no temporary sticker. I also asked them to remove the Carmax advertising from the vehicle. ;)

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I forgot to mention, the charge off is unpaid and will remain unpaid since it will fall off of my credit in about 2 more years. Also, I've been at my current job for 4 months. It will be over 6 months in May.

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