personal ? Credit scores and financing

buschy · #1 10-08-2006, 11:29 AM

Let me throw this one out there. Due to past finacial situation(when I lived in New Orleans area, you can imagine what that was.) we made some decisions that made our credit not so great(the decisions however were benificial). in any case Any one had any dealings with getting financing with low credit scores, I jsut wanted to see if anyone here was in the same boat when purchasing a BMW. My mid score is a 624, which is not bad considering, but not good. FInacially other then credit score we are well off, everything we have is paid off and we make enough money.
So the point is has anyone gotten approved on financing with a similar senerio? you can Pm me if your modest, but credit is public record anyway so? thanks for any help. oh yeah and I am asking cause before runnign a credit score I wanted to have an idea if its worth it or not. thanks again.

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loansinpa · #2 10-08-2006, 11:46 AM

I can say that I pull several reports a day, for mortgages, not cars. But, 624 is not horrible or even real bad given the circumstances. Depending on who pulled your credit and which bureau (or all threee) you will get different scores based on the day they pulled it. It is only looking at the information that is out there as of the time that it is being pulled. The credit model for a car loan is different than a mortgage. Was your car paid on time? If so, they will probably weigh that more heavily.

Future planning - having everything paid off does not establish credit. Credit is 'getting something without paying for it' so if you pay for everything you will not re-establish credit. You just won't have any.

bozo · #3 10-08-2006, 02:49 PM

Im clueless when it comes to finances - nor do I know how other banks work. But my credit SUCKS, and I didnt have a problem at all financing my e46 or the X. Two words - down payment. I guess its just less risk to the bank when you cough up some of your own cash...

JV · #4 10-08-2006, 03:18 PM

Make sure your proportion of credit used to available credit stays low, and don't apply for any credit that you're not really sure you'll get (but do seek additional credit), make all your payments on time, give it a year and your score will improve. You can get a car loan now (don't be shocked if it's a 12%-16% rate, and go for the lower rate by making more down payment), and refi in a year. If you haven't joined a credit union yet, do it yesterday. Sometimes having a relative in a credit union when you don't necessarily qualify to join one will get you in.

I used to pay cash for everything when I was younger, and only had an Amex and Mobil gas card as a credit history and had to really get to know the credit system to build a history correctly. In your case, paying a credit repair service the $500-$1000 fee would be worth it. They can write letters on your behalf, and get you back on track with much more ease than you could do yourself.

JV

blondboinsd · #5 10-08-2006, 04:17 PM

From what I have heard its mostly based on your car credit and past car accounts, I have no idea what my score is but I never worried about it even when I purchased my Z4 and I was 20

B-Line · #6 10-08-2006, 06:49 PM

Bo,

That's a no-no.. You should check your credit score and credit history regularly. Especially if you are about to purchase a big ticket item. I was a victim of identity theft and it took 5 years to clear my credit history. Having said that, having a good credit score has saved me, and others on this board, tens if not hundreds of thousands of dollars on things like mortgages. Over the course of a 10 to 30 year payment plan, or even a 3 to 5 year payment plan, a FICO score will significantly change what you pay for a car.

And, since scores can be manipulated to favor you, do everything in your power to have the best score you can. A credit doctor for $500-$1000 is a great idea. It will return that money back to you times 50 in opportuinity of better rates in future puchases.

This really is a no brainer. protect your credit history and score as a financial priority. I have a mortgage on my house, 30 years, at fixed,5.625% interest rate. Do you realize the difference in cost of a house if my credit were low and I had to pay 8%.

So if you don't own a home and think you may buy one sometime in the next 5 years, start working on those credit scores.

B

buschy · #7 10-08-2006, 08:55 PM

ok back to basics, I plain and simply asking if anyone got approved with a 620 ish score? I am 9 mths out from a bankruptcy after Katrina came in and made me make some life changes, being my score is a 620ish is alresdy pretty good, and I got everything on track making it go back up, I was jsut wondering if anyone got approved for a high dollar amount iwth a lower score, thanks.

B-Line · #8 10-08-2006, 09:33 PM

Buschy,

You are really asking some difficult questions here. It's really not that cut and dry.
624 is NOT a good fico score as such, I am almost positive someone will finance you. What you need to understand is, the worse your score, the more quick many companies are to extend credit to you because they know, pardon my french, that they can ass rape you on rates. They make a fortune on people like you because your fico is low. They make a lot less from people with good credit.
Even if BMW does not extend you financing directly, the "finance manager" at the dealership will find some schlok company to extend your credit. They will even find a way to make it look like a good deal to you, even though it will not be a good deal. A five to six year finance at 8%, you will be paying thousands more than the sticker on the car.

So yes, YOU CAN PROBABLY GET FINANCED...
and NO, YOU WILL NOT GET A DEAL THAT ANYONE IN THEIR RIGHT MIND WOULD TAKE.

So even though you are not asking for my advice, I will give it. I am sorry for your losses in the wake of the Katrina damage but I would not run out and buy a BMW at this point, near bankruptcy and with moderate credit.
- Buy a car for cash and work to fix your credit score, that way when you go to buy a new house, your fico will not be even worse for a bigger loan.

People will finance ANYTHING... Usually the best customers for a credit agency is people who have been bankrupt, pay terrible rates, get locked in a cycle of finance dept and interest payments and never pay off principal.

Good luck and Hope I helped to answer your question.
B

buschy · #9 10-08-2006, 09:46 PM

The question I asked was very cut and dry, has anyone with a lower credit score gotten approved. that was actually the question. I alreayd own two cars that are fully paid off, my question was jsut to see if I would get approved. I know if I do I will get shafted with rates, but the loan is really jstu to start building credit back with the other stuff I have going on as well. I figured on getting it and paying on it for a while then paying it off or refinancing if my rates would be better at that time. Since this went astray, I filed bankrupt by choice due to the circumstances. I am not un-informed of any of the processes involved including rebuilding my creidit, that is well on its way. I also had a mortgae up untill two months ago when we sodl our house and moved, and I have since be approved for a new mortgage and we just made an offer on a new house, so all that information is appreciated, but the question was simply has anyone on here that wishes to share with me gotten approved and taken out a loan. maybe I didnt word the OP correctly, sorry. thanks

B-Line · #10 10-09-2006, 08:29 PM

Buschy,

I did understand your question.. I think you did not understand part of my answer. Let me see if I can clarify, I would really like to help.

The question you ask, has anyone been approved for a BMW finance with a low fico score?
In order to answer that question, you must tell us, do you mean from BMW directly or through a 3rd party finance company like a bank or credit union?

It is almost ALWAYS possible to find financing if,
A) you are willing to put a large cash deposit down.
B) you are willing to pay big fees and accept bad rates.

Now, BMW may not finance you (or maybe they will) but say, Suntrust bank for example might do it. You might also want to try a credit union like www.penfed.com you can join this credit union for $5 and it has very good rates on loans etc. provided you are willing to show them tax returns, etc. But the terms of their loans are not that broad. You usually have 2 or 3 choices.

When you go in to finance a vehicle, the car manufacturer is just one choice of lender that the finance manager will show you. But remember, the finance manager may get more points on the loan if they put you into a 3rd party so they might not want you to qualify for manufacturers loan if you have borderline credit. -- Remember, they are not there for you. They are there to put you into a loan that puts the most money in their pocket. That's why when you finance a car, it's good to have all the deals in place before you go in to sign the paperwork. If you have a good 3rd party finance deal, the finance manager will be more competitive to match or beat what you came in with.

Companies like BMW do not usually give great rates on finance either. Whereas companies like Infiniti will bend over backwards for your business at 2%-3%. A company like Porsche for example with extend credit to anyone because the rates are so high, they don't care what your fico is.

So again. The answer to your question is, YES, you can get financing with a low fico. But maybe not through BMW directly.

B

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