[BG2112]

So, my credit is really bad (sub 600) at the moment. I'm working on repairing it, but I don't know how much I would be able to improve it in the next 6 months.

That said, I will have roughly $20k for a down payment come February 1, which I hope to be ordering a 2SS 1LE A10. I"ve been putting away almost my entire paycheck since the pandemic hit since there's nowhere to go that's open here in NJ.

Just wondering if anyone has any experience putting down a large down payment with bad credit and getting a somewhat decent APR. I'm hoping for a $600/month payment or less. I guess that would be a 72 month contract, however, I would be paying off the car in approx. 2 years.

Thanks!!

[kropscamaro16]

i put down 15k on my 41k 1ss but my credit score was almost 800 so i got pretty low apr around 3% i wanted to get my payment under $500 a month and i did 5 years so my car will be paid off in feb 2021

[seethruya]

Originally Posted by BG2112

So, my credit is really bad (sub 600) at the moment. I'm working on repairing it, but I don't know how much I would be able to improve it in the next 6 months.

That said, I will have roughly $20k for a down payment come February 1, which I hope to be ordering a 2SS 1LE A10. I"ve been putting away almost my entire paycheck since the pandemic hit since there's nowhere to go that's open here in NJ.

Just wondering if anyone has any experience putting down a large down payment with bad credit and getting a somewhat decent APR. I'm hoping for a $600/month payment or less. I guess that would be a 72 month contract, however, I would be paying off the car in approx. 2 years.

Thanks!!

If you put $20k down, you shouldn’t have any trouble getting a loan. I’m thinking you could get 72 months at 10% apr with one of the subprime auto loan company’s like Safco.

[3.8TransAM]

Investigate credit unions and actual local banks around you.


That being said get on your credit reports now and anything erroneous or old that u can get removed do so ASAP.


Also, I don't know the who/what/why of your situation, if you can't get a decent deal and need the loan, personally I would wait until I could get a good APR, but that is me.

[BG2112]

I'm really trying to get a car ordered by February as I have read the delivery time is usually 6-8 weeks, which would put me somewhere near the beginning of April so I can have the car for the full spring/summer/fall season before winter hits. It wouldn't be the end of the world to wait a couple extra months but I'm really hoping not to.

[AZIROC]

I dont want to be a deby downer but if you have 20k to put down, I would work on getting your credit score up with that 20k vs getting a 40k+ car.



But.... if you are set on it, putting 20k down will help with just getting the loan itself. Won't really help with the interest rate. Thats where, sadly, credit score comes into play. I have an OK score between 760-780 depending which of the 3 you look at. I'd expect id get a interest rate in the 3% range (unless its a new car then I'd expect 2 or even possibly less). With a sub 600 score, you are prob going to be close to double digits.



Idk if you have heard of him, but i would get on YouTube, or google, and watch/search for Dave Ramsey. He has some very easy paths to getting out of debt.

[3Putt]

The money down won't impact the interest rate. We just put $25,000 down on a 2SS. We were offered interest rates based on our credit score, alone. The best was around 3%, the worst was way up there.

[seethruya]

Originally Posted by 3Putt

The money down won't impact the interest rate. We just put $25,000 down on a 2SS. We were offered interest rates based on our credit score, alone. The best was around 3%, the worst was way up there.

All true for your situation but apples to orange. The OP has a credit score under 600.

[95 imp]

I'd get a couple of secured credit cards and charge every day stuff with them and then pay it off in a few days. Buy groceries, gas, whatever.

Only charge up to 10% of the limit max before paying it back.

You have to keep on top of the payments. Charge, then pay. Don't carry a balance.
The balance can slow your credit score rising.

DO NOT MISS A PAYMENT!!! If you do, it will throw it all in the toilet.

Follow this and your credit will start jumping up fairly quick.

[BG2112]

Thanks for all the advice. I actually just got 2 secured cards a couple weeks ago and I have begun to use/pay them. I really don't have any debts. My score is just messed up from a bad divorce lol.

[MrChrisLS3]

Let's say, that after tt&l, out the door the car is $50K. Financing $30K if you can get 10% apr, you're looking at a payment between 560 and 600.

I would say, take that 20K you want to put down and put in a savings account at a local credit union. Order your car, when it gets there, get a pre-approval through them. It may not hurt to let the dealership see if they can beat the rate, but I'll bet not. Credit unions operate on different parameters than traditional banks. They will often do better for members in your situation than a bank will.

And yes, by all means, get a report from all three bureaus and clean up everything that you can.

[seethruya]

Originally Posted by BG2112

Thanks for all the advice. I actually just got 2 secured cards a couple weeks ago and I have begun to use/pay them. I really don't have any debts. My score is just messed up from a bad divorce lol.

Now your situation makes complete sense with why you have poor credit yet have a large amount for a down payment.

[foshjowler]

Originally Posted by 95 imp

I'd get a couple of secured credit cards and charge every day stuff with them and then pay it off in a few days. Buy groceries, gas, whatever.

Only charge up to 10% of the limit max before paying it back.

You have to keep on top of the payments. Charge, then pay. Don't carry a balance.
The balance can slow your credit score rising.

DO NOT MISS A PAYMENT!!! If you do, it will throw it all in the toilet.

Follow this and your credit will start jumping up fairly quick.

That's what I do, well not secured, but the principal remains. It smoothes out my bank balance because I make the same payment every month, if it doesn't totally pay it off. I don't worry much about carrying a few hundred dollars, it's not going to hurt my credit score and the interest is irrelevant at those amounts. It's when you start carrying a large balance, percentage wise, that it starts to hurt your rating.

[TRZ06]

Originally Posted by BG2112

Thanks for all the advice. I actually just got 2 secured cards a couple weeks ago and I have begun to use/pay them. I really don't have any debts. My score is just messed up from a bad divorce lol.

I know that pain. I went from a mid 700 score to high 500's after my divorce and a shortsale on our house.

That was over 10 years ago now, and I have sense built my credit back up and am above 800 for the first time in my life.

The road back up can be a rough one, but keep at it.

Good luck