I guess my credit still sucks

[Jumpem]

I bought a car over a year ago and got stuck with a 12% rate because my credit score was 575. Yeah, I know that's bad. I didn't pay a credit card on time for a while when I was homeless during college, and one of my student loans had no payments for a bit because they tried collecting before I graduated. I've payed everything on time for the last two years, but that stuff is haunting me.

Now I have a $50k job, my credit score is up to 685, and I still can't get a decent car loan. The Subie dealer said 10%. :frown:

I thought I should be getting a much better rate by now. What can I do to make it better besides contue paying everything on time?

 

[CTrain]

Turn the clock forward 5 yrs ??

 

[Vic]

You thought right. You should be able to get a better rate by now (even though interest rates have come up a bit in the past 2 years). I advise you NOT take the 10% from the Subie dealer and go get your own financing, preferably through a local credit union.

 

[Injury]

Short of finding a way to get those bad credit marks changed, there isn't much you can do.

I think the only way you could do that is to contact the creditors and look into what you have to do to get them removed, or if they are accounts that are still active, kick ass with them... pay well in advance, make them notice you making payments. I dunno.

 

[AgaBoogaBoo]

Get a loan from a bank or credit union

 

Why are you already buying another car? You bought one A YEAR AGO. Finally discovered that a Miata is too girly?

 

[Fritzo]

You went from 575 to 685??? You better check again. Over 670 is awesome credit, and over 680 is elite. You wouldn't be getting a 12% rate with 685.

 

[Reckoner]

Sounds about right. I took out an 18.5k loan at 8% and I have a credit rating of 730.

 

[QuitBanningMe]

Originally posted by: Vic
You thought right. You should be able to get a better rate by now (even though interest rates have come up a bit in the past 2 years). I advise you NOT take the 10% from the Subie dealer and go get your own financing, preferably through a local credit union.

Agreed.


Not sure what the rates are these days but a 685 should be able to get you all but the lowest rate.
Also the dealer is probably holding a few points.

 

[Suspicious-Teach8788]

My credit score is 670 and I have only had a credit for 1 yr. Actually I have like 4 now, but my parents charge EVERYTHING to my card. They basically drag me to go shopping so I can max out my card. Maybe that's w hy I get instant approval for $10k credit line cards =P

 

[BurnItDwn]

Originally posted by: Vic
You thought right. You should be able to get a better rate by now (even though interest rates have come up a bit in the past 2 years). I advise you NOT take the 10% from the Subie dealer and go get your own financing, preferably through a local credit union.

What he Said .....

(First thing I would do on Monday is look through company policies and/or ask the boss if the is a credit union benefit for employees. If there is you will probably not have much trouble getting a loan at < 8 percent for a car.)

 

[surreal1221]

Originally posted by: AgaBoogaBoo
Get a loan from a bank or credit union

 

[ZaneNBK]

My credit score is about in your range and I qualified for 4.75%@5 years and 5.25%@6 years through my credit union. NEVER go with financing through the dealer unless you can't get it anywhere else and absolutely need the car.

 

[QuitBanningMe]

Originally posted by: ZaneNBK
My credit score is about in your range and I qualified for 4.75%@5 years and 5.25%@6 years through my credit union. NEVER go with financing through the dealer unless you can't get it anywhere else and absolutely need the car.

I got 0%....does your CU offer that rate?

There are tons of financing incentives that are better than CUs.

 

[RichPLS]

Credit is GREAT if you are gonna die before repayment
Otherwise, pay with cold cash, the tender of champions . . .
Keep the money an pay bills as late as possible.

I have bought 3 new extended cab trucks, a house and a robot surveying instrument ($40,000) and all were paid off withinin two years.

 

[mwtgg]

Originally posted by: QuitBanningMe

Originally posted by: ZaneNBK
My credit score is about in your range and I qualified for 4.75%@5 years and 5.25%@6 years through my credit union. NEVER go with financing through the dealer unless you can't get it anywhere else and absolutely need the car.

I got 0%....does your CU offer that rate?

There are tons of financing incentives that are better than CUs.

What is the big fascination with Credit Unions, anyway? My bank treats me right so I really have no reason to switch, but damn you guys are Credit Union whores.

 

[Dunbar]

Originally posted by: mwtgg
What is the big fascination with Credit Unions, anyway? My bank treats me right so I really have no reason to switch, but damn you guys are Credit Union whores.

Bank of America offered me something like 11% on a car loan (basically they don't want the business.) My local credit union offered me 5.35% for 60 months. They filled out all the paperwork, mailed in the sales tax and didn't want the first payment for 30 days. In short, they treat you right and don't play games.

 

[tfinch2]

I just checked my credit today. I got my first credit card about 2 years ago, and now I have 3 cards. My score is 693.

 

[Jumpem]

Originally posted by: jumpr
Why are you already buying another car? You bought one A YEAR AGO. Finally discovered that a Miata is too girly?

No, it just won't handle the upcoming winter. I went to a more reputable Subaru dealer out near my parents and they gave me 4.9%.

 

[Jumpem]

Originally posted by: Fritzo
You went from 575 to 685??? You better check again. Over 670 is awesome credit, and over 680 is elite. You wouldn't be getting a 12% rate with 685.

682 to be exact.

 

[Raincity]

It's going to take awhile before those late payments come off your report.

 

[Reckoner]

Geesh.. with all these low interest rates, why was mine 8%?

 

[Oakenfold]

Originally posted by: QuitBanningMe

Originally posted by: ZaneNBK
My credit score is about in your range and I qualified for 4.75%@5 years and 5.25%@6 years through my credit union. NEVER go with financing through the dealer unless you can't get it anywhere else and absolutely need the car.

I got 0%....does your CU offer that rate?

There are tons of financing incentives that are better than CUs.

0% is great as long as you aren't giving up rebates...
If you did give up a rebate it may not have been the better choice.

To the OP, like VIC said go talk with your local CU, you should be able to score a better rate than that.

 

[DaWhim]

try penfed? get your own pre-approved car loan before you go to the deal, so you can negotiate with them.

 

[jpeyton]

You're obviously looking in the wrong places for a car loan. Try a local credit union.