Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Auto Loans
Profile Image

Question By

1 Contribution
0 People Helped
Wondering About Auto Loan I Received
So I needed a new car and found something I felt I could afford.

Long story short it was a used (2012) car, and I have somewhat bad credit (678 w/ 12 inquiries within the last year due to attempting last year to get a loan for a car and credit cards/credit limit increase. I wasn't sure what I was doing at the time but I know better now). My utilization is very low, about 12% give or take. I also have "young" credit.

Anyways, I got my partner to co-borrow/co-sign with me. His credit is amazing. 750-something with around 20% utilization and much older credit. He also has relatively high income with the only debt he has being a loan for his car plus whatever trivial credit card balances he has.

We were approved for a 72-month loan (a little over 16k after tax, 20,016 with the total cost of car+loan/interest) for 5.99%. I'm just wondering if we could have done better and/or if I should consider refinancing next year when my credit goes up. It sounded really good to me considering my credit, but like I sometimes do, I rushed a little.

Payments are 278/mo which was $8 over what I set in my head as my "max" but I figure I can scrounge that up easily enough. The finance officer told me that we were approved UP TO 390/mo which tells me we looked fairly good to the creditor. Or at least, he looked good.

Just let me know what you guys think!


Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
199 Contributions
220 People Helped

I think you did pretty well. You partner probably could have gotten a better rate if he had applied alone, but 5.99 isn't bad (mine is 9.75, I think I was smoking crack that day-j/k). Unless you can get a fabulous rate next year, I'd probably stay with the current lender. You can always pay extra to the premium and pay it off earlier.

Also, I don't think your score is "bad". It's on the high end of fair and it's better than average. The inquiries on your report will only be on there 12-36 months, I can't remember which, so they're not a long term issue, and your level of utilization is great.

So in my opinion you're in a good spot. Keep your utilization and number of inquiries low and pay everything on time and you should see an improvement soon.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.