Car Loan?

[1993 CB7 LX]

just a quick question. do you guys know of anywhere in NH for a 20 year old male with bad or no credit to get an auto loan? ive tried multiple places, DCU for example, and have been denied everytime. i dont know if i would be better off financing through a dealer, or getting a loan from an independant lender. if any of you guys have any info/experience with this, it would be greatly appreciated.

[illinois_erik]

Probably but Im sure your kneecaps couldnt handle the interest. No though seriously, a bank would help; you usually have to come up with half of the amount you want or some good collateral

[ChIoVnIdCa]

Hyundai/Kia.. If you have decent income.

[1993 CB7 LX]

i wasnt thinking of brand new, like a used car loan. like 2000 and up or something like that

[JoshM]

Hate to make bad news worse, but your score decreases every time your credit is checked and you're denied.

You may be stuck with a "Buy Here, Pay Here" lot with insanely high interest if you're unable to get a cosigner at a bank / credit union. If you do have access to a cosigner, check out your local credit unions. I went that route and my credit score sky rocketed in less than a year.

[Jarrett]

Did that policy where denials upped your score not go away with the new credit reform act?

[ChIoVnIdCa]

Hate to make bad news worse, but your score decreases every time your credit is checked and you're denied.

You may be stuck with a "Buy Here, Pay Here" lot with insanely high interest if you're unable to get a cosigner at a bank / credit union. If you do have access to a cosigner, check out your local credit unions. I went that route and my credit score sky rocketed in less than a year.

Multiple car/home loan inquires within 45 days are treated as one.

[ChIoVnIdCa]

i wasnt thinking of brand new, like a used car loan. like 2000 and up or something like that

The older the car the harder it is to get a loan.

[Clean_4th gen]

Very true. I tried to get a loan from a credit union and the most they approved was $5K. Car had to be '05-up, and less than 50K miles. Yeah...felt like I was never going to find a decent car with those requirements. I figured it would be easier to go directly to a dealership, asked my dad if he was willing to cosign for me(I was 19 then), and he agreed so I started looking around. Long story short...I ended up getting a brand new Nissan Versa. Base model and slow(1.6 motor) but I dont mind. My point? Try and find a cosigner...that signature makes a big difference.

If you cant, that's understandable(I didnt think I could), I'd try and find a cheaper car no one wants like a Kia Rio, Hyunday Accent, Nissan Versa, etc. Those are usually easier to finance.

[deevergote]

Hate to make bad news worse, but your score decreases every time your credit is checked and you're denied.

You may be stuck with a "Buy Here, Pay Here" lot with insanely high interest if you're unable to get a cosigner at a bank / credit union. If you do have access to a cosigner, check out your local credit unions. I went that route and my credit score sky rocketed in less than a year.

A cosigner would certainly help, but it can cause SERIOUS bad blood if you can't keep up with payments, as it will destroy their credit as well.

"buy here, pay here" lots are indeed the best option, as they'll pretty much finance anyone. If you default, they take the car back and resell it. Often, it's weekly or bi-weekly payments. If anything, get a cheap car you KNOW you can afford, and be sure the lot reports your payments to credit reporting agencies, so it increases your credit score.
Also, getting a credit card that you use responsibly can increase your score as well. Won't help you right now, but it'll help in the future.

The older the car the harder it is to get a loan.

Agreed. When I was searching to finance my latest car (a 2006), I learned that many lenders will not finance anything older than 5 years. I suppose the value of an older car isn't worth the risk, in case they need to repossess it.

[Gemini]

Agreed. When I was searching to finance my latest car (a 2006), I learned that many lenders will not finance anything older than 5 years. I suppose the value of an older car isn't worth the risk, in case they need to repossess it.

Thats true...because of this stipulation is the reason i got my 7th gen for a good price. Everyone that wanted it requested to have it financed but lenders wouldnt touch it due to its age (2003 model). I had cash in hand and the dealership was tired of all the interested buyers getting denied or not having a HUGE down payment