I just checked my credit score and it’s “very poor” – can i get an auto loan?
I don’t have any delinquent accounts but i do have a mortgage, car note, student loans, credit card debt, etc.
With a $1000+ down payment and paying off my current auto loan, could i still qualify for a new auto loan on my own?
If your credit is Very Poor you could probably get an auto loan but it will be tougher. They will take a big look at your debt to income ratio, if that is too high you will not get approved.
If you do get approved your interest rate will be higher, probably in the 18%-20% range. They will also require a downpayment, this can vary but will usually be minimum of 10%. So if with 1,000 down you would probably only be able to finance at most $10,000.
If you have a lump sum to pay off your current car, I would still do that. But don’t get a new car right away. Instead take the money you would be paying on the new loan each month and save it. Then in a few months you will have more of a downpayment, which will make qualifying easier.
