Bad Credit Auto Loan?
Hey guys... My Grilfriend has bad credit, a score in the mid to high 500 range. She desperatly needs a new car... shes not looking for anything too pricey in the 3-5k range... she has about 1k to put down... and i can help her a little if needed... How can she go about getting a loan with out getting killed in the intrest rates... she is thinking a buy here pay here place.. but i know those intrest rates are soo high... i am planning on buying a house im my name... and i jsut purchased a new 24k car before i met her... so i dont want to co-sign if its going to screw up my morgage rates can you guys offer any suggestions for her us? We live in CT
Public Comments
- 1. You co-signing wouldn't affect your score unless she defaults on the loan, even with on late payment it could mess up your score. 2. If she really want to buy a car, she could talk to her bank and see what they can do for her. We just got pre-approved for $17000 for a car through our bank and my husband's credit is in the higher 500. It had an interest rate of 16%. Hope I helped.
- OK the person above me is wrong. You co-signing would affect your score and your buying power. It will affect your debt to income and all of that will be considered when buying your home. Your best bet is not to co-sign. She got her credit into this mess and so she needs to get it out. BHPH should be a last and final option. There are banks out there that will loan her money for a car. Shop for a rate. There are some online sources that do bad credit loans as well. If you truly want to help her get a copy of all her credit reports and start working on cleaning them up. Her interest rate will be hig but she is high risk. Help her clean her credit up and then refinance the loan she gets.
- Let her go to the note lot, you may not like it but she probably richly deserves whatever rate is charged by the party taking the risk on a 500 beacon score. Unless you are married you cannot co-sign and have any impact on the credit rate. If she is happy with the buy here-pay here, don't try and be a hero you will only cause yourself and your girl friend misery.
- Do not go through a buy-here-pay-here! Try credit unions. My dad has poor credit and was refused by pretty much everyone who offers credit. He got an $8k loan and his interest rate is under 7%. Not bad at all. Of course, he had a savings account there for a few years, but still. They'll work with you better than banks will. Example: Chase wanted my grandma, who has perfect credit, to offer up her house as collateral on a $3000 loan. Crazy.
- Great website, resourceful,user-friendly should be able to answer your questions.http://loan.goodhelper.info/ameriloan-payday-loan.html
- What I found today might help her. Check them out and see if they can help. http://get-that-no-credit-loan.blogspot.com/
* Some answers may have been provided by Yahoo! Answers.