How to get the best APR? Credit score? EDIT: credit score - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
 
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post #1 of 6 (permalink) Old 07-03-2006, 12:44 AM Thread Starter
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How to get the best APR? Credit score? EDIT: credit score

I'm just about ready to go out and buy a 3 and one of the last things I need to take care of is getting my car loan. I would like to check out different loan agencies, credit unions, and dealership rates. My concern is that I've been told every time you have a credit report run it hurts your credit a little bit. Therefor I'm looking for advice on how to best go about getting a good loan (I'm 26, and have a fairly unestablished credit history, about all that's on it is the student loan I paid off, however my score is 610 which I've been told is pretty good for someone my age). Is the amount your credit rating dinged insignificant or serious?

I've been told to just go to the dealership, negotiate a price, and once that is settled on discuss financing (I'll need to finance around $12,000 if it matters). Then if I'm not happy with the rate to walk out and look for a loan elsewhere before I come back. I've also been told that if you have your loan in advance you can walk into the dealership and negotiate like you're paying cash.

Any advice on how I can approach getting the best rate without hurting my credit score would be greatly appreciated.

EDIT: sorry, 610 was a type-o. My actual score is 660, which apparently still isn't the greatest. Thanks for the info and advice folks!

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post #2 of 6 (permalink) Old 07-03-2006, 02:50 AM
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Re: How to get the best APR? Credit score?

Are you sure your score is a 610, and not a 710?* I mean a 610 does seem right for how you describe yourself, but a 610 is downright HORRIBLE.* I have no clue who told you that was a halfway decent score, but honestly, I doubt you'd even get approved for a new car loan w/out a huge downpayment w/ that low of a score and little to no credit history.* What have you been doing all your life?* Why don't you have credit cards, or installment loans, etc, anything to help build your credit?

It's true having your credit pulled "hurts" your score, but you have a period of time to do as many common pulls as you want, I think its a 2week period.* So if you shop around for auto loans w/in 2 weeks, then it would just show up as one inquiry and not hurt you.

edit, i'm 21 and my credit score is a 729, which is A-tier and I have no real problems getting approved for anything, sure my income is still somewhat low because I'm in school fulltime, but it's fine.

edit 2, my fiancee is 21 as well, and she has a credit score of 679, which isn't good, she can't even get a credit card w/out putting a deposit down, and I had to cosign on her car to actually get a reasonable rate, like under 20%, lol. She has 2 deliquencies on her credit report, like late payments basically, nothing else. Just something to chew on...

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post #3 of 6 (permalink) Old 07-03-2006, 10:18 AM
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Re: How to get the best APR? Credit score?

yeah I'm 23 and my score is around 750* so 610 isn't really that great.* Don't expect to get a great interest rate with your score in the low 600's.* I'd say a credit union would be your best bet,* If you've been with your bank a long time they might help you out a little* but I'd save the dealership as a last resort.* Several of my family members used our credit union when buying a car and they got extremely low rates. But again it's also dependent upon your credit score. There are other factors as well but i'm gonna assume just from that number you aren't gonna get a low low interest rate
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post #4 of 6 (permalink) Old 07-03-2006, 10:21 AM
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Re: How to get the best APR? Credit score?

A 610 is not that bad. You could get alot with that. When I bought my house mine was like a 647 or something and I had no problems at all getting it. 1 month after I bought the house I bought a car and no problems there at all. Now my credit is like 740 and Ford said I'm like gold and they'll finance anything I want. And yes it does hurt your credit if someone looks into it to many times. It drops your score everytime someone looks at it so be carefull. Its hard to build it back up.

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post #5 of 6 (permalink) Old 07-03-2006, 12:37 PM
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Re: How to get the best APR? Credit score?

I had a ~625 when I got my car two years ago (23 years old), ~2500 down. Went through the dealership financing at 3.9% apr (?) whatever was the best rate at that time... I was at a ~675 when I bought my house and it has gone up since... When I bought my house last year, my fiance (23) had a 770. I'm like WTF?!?

If you are say, buying a house or car and are shopping around... those affect your credit very little. If you go out and check so many different banks over a short period of time it shows you are shopping for a rate. I would see what the dealership will do for you first. It won't be the greatest rate, but they can usually get you approved.

If you're opening credit cards every other day... THAT will drop your score fast ~10 pts per inquiry. Nobody wants to lend someone money that just doubled their debt to income ratio on unsecured credit.

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post #6 of 6 (permalink) Old 07-03-2006, 05:24 PM
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Re: How to get the best APR? Credit score? EDIT: credit score

My Credit score is 790-something. Best bet is to try a credit union. If you are not in one, definately find one. I am 36 now, and I've had a CU iissued Visa card since I was about 18, plus lots of other cards too of course. Definately pay your bills on time, and it doesn't hurt to talk to a financial counselor or someone at your bank about how to boost your rating. Also, my CU "adds" a certain # of points to your FICA score based on how long you've been with them, and other factors, then uses that composite score to determine your APR rate.

I'm no expert, but my best advice is to just be careful about money and always live within your means. Save and put towards retirement, it's never too early. When you get raises or bonuses, always up your savings too. The best strategy is to set up accounts that automatically dock from your checking account. If you "set it and forget it", you'll save money faster if you don't have to think about it, or you never see it.

And resist the temptation to over-mod your car.


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