Saturday, February 6th, 2010
iam trying to get an auto loan with a credit union with an interest rate of 5.99% however i just checked my?
yuka m asked:
credit score and my transunion score is 721 however my equifax which i was told most car lenders use is 661. My debt to income ratio is around 43% and they require a 0-45% to get the 5.99% rate. I am hesitant to apply because i don’t want to be denied the 5.99% but i desperately need a car. How can i convince the bank to give me a 5.99% rate?
credit score and my transunion score is 721 however my equifax which i was told most car lenders use is 661. My debt to income ratio is around 43% and they require a 0-45% to get the 5.99% rate. I am hesitant to apply because i don’t want to be denied the 5.99% but i desperately need a car. How can i convince the bank to give me a 5.99% rate?
February 8th, 2010 at 8:13 am
If you are going to use debt to purchase the car then my recommendation would be to try and get the debt to credit ration down a bit, maybe to around 30%. That way you would feel more comfortable. And it might give you time for the Equifax FICO score to rise.
An even better option (in my opinion) is to not use financing at all. I would save up my own cash and purchase the vehicle outright. It may not be the one you want, but you won’t have any car payments. With the payments I would be making to the car I would save that money towards another, better car maybe 3-4 years in the future.