Car Poor Credit

Posted by admin on October 27th, 2009 at 12:00am

Question:
Purchasing a car poor credit but high income?
I currently have poor credit that is under 600. My husband and I would like to get a new car.
I make over 50 thousand per year and own a home nearly outright but we have bad credit. He has a score of around 680, but he has a small income. We currently share accounts. Do you believe that together we may finance a new car poor credit?

Answers:
Yes, purchase a used car that’s nice, about one or two years old. Have your husband sign first on the auto loan with you as a co-applicant. Make a down payment. Your income combined with his decent score would help a lot. I would speak to your bank or credit union beforehand see if they can accept you together. Many dealers will have to apply a higher rate than if you were preapproved.

I do not think any prime lender will approve your loan for a car poor credit. In the current market, a co-signer is not going to help someone with poor credit, only people with no credit. A subprime loaner will take a long, extensive look at your husband’s stability before it chooses whether or not to fund it. 680 is just at the limit with them currently. However, the biggest downside would be your credit history. Since even with subprimes, co-signers would not be of much help to a person with bad credit. After all, check out how many subprime lenders have closed up lately due to poor loans.
Partners too has a bad effect on lenders. Whether it is in business or with love, either relationship can quickly fall apart which usually means a person will let the loan descend into default, particularly if it is business seeing as so many are going under these days.
You might get bought via a subprime lender. And if you are, brace yourself for a very steep rate on interest. Many loans through them begin at 15.9% APR. That basically means a lot of finance charges across the term. And they now need enough down to place them in an equity situation. Based on the vehicle, that can equal up to 30% of the selling price.
None of this is really positive news. However, it’s the reality of the critical economic crisis we are in.

Under Cars and Bad Credit