What rate to expect (Loan)

[FutureCamaroOwner]

Hey guys,
So im looking to put my order in a few months and this will be my first. Im curious to know what to expect on my rate. When i went to the dealer i got a 617 (avg) score as my auto score. I am looking to put like 4500 down and as much gm points as they will allow. When i purchase the only stuff i will have on my credit report will be medical (which i was told cant be used against you) What do you think and do you have any pointers?

I also have two friends that will be letting me be an authorized user on there credit card (to help the score) Thanks guys

[1sickss]

i got 4.19 from boa 2 weeks ago

[armando416]

As a former paper buyer, I will say that medical can and will be used against you, especially if it is all you have on your report. They wouldn't bother reporting it if it was totally meaningless. If the customer has 10 good accounts and 2 medical collections, than sure, they will shrug it off; but judging by your score it will be an excuse to reject you. Also, being a first time customer makes you a high risk; finance companies experience high loss rates on first time buyers. Some companies have/had programs for first time buyers, but usually involved high down payments and still had a high rate (think at least 13%+) ...and now I'm not sure these programs exist at all after the tightening of credit.

Personally, I would get someone to co-sign with you to get a lower rate. If that isn't possible, I am very sorry to say (and of course I could be wrong), but I think with that score, even with $4,500 down you would be out of luck at getting financing from traditional sources. Maybe a company that specializes in high risk but they will rake you over the coals on rate.

[FutureCamaroOwner]

I bank with Wells Fargo. They are horrible for Auto loans. Do you need a bank account with B of A to get there loan?

[1CAMSS]

from what i heard GM is pretty tight with their loans unless you have a good credit score.

[FutureCamaroOwner]

On there website they said that you can get the loan at 7.4 % if your autoscore is better than 620? Any word on that

[PQ]

Originally Posted by FutureCamaroOwner

Hey guys,
So im looking to put my order in a few months and this will be my first. Im curious to know what to expect on my rate. When i went to the dealer i got a 617 (avg) score as my auto score. I am looking to put like 4500 down and as much gm points as they will allow. When i purchase the only stuff i will have on my credit report will be medical (which i was told cant be used against you) What do you think and do you have any pointers? Thanks

Financed with the dealer. It was easier and I got 5.25, I'm sure I coulda got better but I didn't have much time to look around and didn't want the inquiries on my report.

Your dealer can find you a lender but they may pocket .5 or so percent. If you shop around your score will only drop while you do it.

[amyroxs]

I financed with GMAC for 7%. I traded in my 2005 accord, but i had a negative equity so I basically used my trade in, plus the payoff for my negative which was about 5,000. And my credit is over 750. However I will be refinancing in the early party of 2011.

[az5thgen]

Try to stay away from GMAC. I would recommend a credit union. Your score isn't terrible, and 4500 down helps. Credit unions are a little more forgiving. We also bank at Wells Fargo, and they bought Wachovia, who has a great dealer network finance arm. We got 3.5 through them.

[mikel441]

6.94 from WSECU. Yes, the Medical stuff will be used against you. I placed my order then started paying off everything I could without digging too deep into my down payment. As soon as you have VIN, the car hits the rail and your salesman verifies the invoice. Start looking for financing ASAP. When mine arrived I still had some paper work I was waiting on for some debt I had just paid off but, had not had time to report back yet. If I did not have a letter stating that I had been preapproved for a loan and was just waiting on things to be completed. They would have sold my car out from under me. They even had a buyer waiting in the wings. I bought mine at GMS for $33032. They would have sold it for $43000 if my financing fell through. Make sure you cover your butt from all angles or all your work will be for nothing. Or it will delay your endeavor.

[PQ]

Originally Posted by FutureCamaroOwner

So do you believe the guy above was saying that they could down right reject me? Im getting friends to get me as a authorized user on a credit card (to help the score) but no cosigner as of yet. The Finance Manager felt VERY confident they could get me the GMAC loan

Understand a few things. You were told that medical bills won't hurt you. Not true. Because a lender can use whatever method he wants to when determining wether or not to loan you money.

Yes. Unfortunately they could reject you all together. 620 is pretty low. Now I'm not sure what the difference between an 'Auto Score' and a 'Fico' score or any other type of score. My Fico score has been up to 802 and at the same time my Expirian score be at 763. A month earlier, they were both 30 points lower and a month after, it went back up. A lot of things determine your score but ultimately, it's up to the lender to decide wether or not to extend credit to you. I'm sure you can find something. You may have to just have your dealer look for you because they can run your credit once and provide the same report to multiple agencies. If you shop around yourself, you will have an inquiry for every agency you go to.

I'll post this on the thread so we can get feedback. I'm not a lender or a banker so I could be wrong. I'd hate to tell you in a PM the wrong info and lead you awry.

[NoUCantDriveIt]

Doesn't hurt to check around for rates

http://www.myfico.com/CreditEducatio...Inquiries.aspx

Will my FICO score drop if I apply for new credit? If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.

[Darth_Emma]

My dealer said he could get me 3.9% with a good credit score and a substantial down payment.

[PQ]

Originally Posted by NoUCantDriveIt

Doesn't hurt to check around for rates

http://www.myfico.com/CreditEducatio...Inquiries.aspx

Will my FICO score drop if I apply for new credit? If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.

Good info. Nice find. Did not know that. Of course, like I said before. A lender can use the info how they see fit. May not effect your score, but the human element may not be so quick to dismiss.