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Itâs like I wrote that myself. This x1000. Started young as a car aficionado so always was opening auto loans and paying them off quickly and as my income grew my loan amounts grew as I wanted better cars. That in itself and low credit card utilization is what propelled me to the usual 840-850 score.
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This guy fuchs
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If you need a loan and have no alternate options a subprime loan and work on paying it off ASAP, or refinance asap when your credit improves.
Not quite sure I would take this advice. Do buy here pay her places even report to credit bureaus? I thought they just GPS track your car and repo it the first day your payment is late.
Building auto credit is best to take a small loan at a reasonable rate (5 to 9% for lower credit). Look for cars known to be reliable with high mileage like Hondas and Toyotas. I would start by trying to finance less than 10k.
Look for local credit unions and rate shop with them.
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I think itâs time to merge the thread with some other appropriate thread.
Plus even if they did, you donât want âLast Chance Auto Creditâ on your credit report.
Especially with newer or imperfect credit, credit reports are often manually reviewed, and this would be a red flag for a future credit analyst as a sign of past financial distress⊠even if the account was handled perfectly and there is no âdamageâ to the credit history / score caused by things like late payments.
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Both of you make excellent points. More than fair.
I think the way I shouldâve phrased it is find alternate routes, paying off debts then refinancing if necessary to a more reasonable apr is the way to go. Iâve edited to reflect that.
What is your highest credit score?
What type of car are you looking to buy? New or used? Have you ever had an auto loan?
Fyi, check out this credit thread for more info: The Credit Thread.
Subprime interest rate is usually dependent on money down. Used car dealers and even franchised ones can get you set up with one. âCredit Acceptanceâ is a big one.
Be wary of interest rates but even more on extra blessings, warranties, negative equity, etc.
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How bad is bad? You really only need a 730 - 750 credit score.
Fixed it for you.
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I was always told âbad creditâ was under 600. Isnât 600 the base for no credit history?
No, a credit history can be as high as 850.
Bad credit under 700
Lucky Lopez is going to deal with people in 300s, he says a 450 makes him smile.
I donât know if theyâve tightened up their credit policy in recent history, but DCU has a reputation for giving prime-ish rates for scores as low as 580.
Shared earlier in this thread:
Here are the FICO score ranges, based on estimates from Experian.
Very poor: 300 to 579
Fair: 580 to 669
Good: 670 to 739
Very good: 740 to 799
Excellent: 800 to 850
These may have shifted since averages moved up during the pandemic, but you get the general idea.
The first few dozen posts in this thread are worth a review for anyone landing in recent history.
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I would fall over and die twice, if I EVER were to see anything remotely close to 580.
Yeah⊠720 has been the golden number people love to toss around as the youâre into the âgood credit scoreâ range.