TransWikia.com

Recent grad with bad credit in need of auto loan

Personal Finance & Money Asked by Mike touhey on October 6, 2021

I’m a recent college grad. Due to some stupid things I did during my masters, I have a bad credit with 3 missed payments on my account and 2 collections. I got a job recently with a six figure salary in Raleigh, NC. I don’t have any student loans. I recently went through some websites and got to know that it is kinda hard for a person with bad credit to get a loan approved. I need a car very badly as the new place doesn’t have much transport options and I’m going to stay alone in a studio apartment. Will showing my offer letter with salary help in getting a loan approved? I don’t want to try with random lenders and hurt my credit score.
I need some suggestions from you guys regarding this.

Thanks a lot in advance!

One Answer

Yes, showing your offer letter can help you get a loan, from both credit unions and dealers. It's especially useful as a way to provide evidence of a raised income for someone who already has decent credit. Some lenders will require seeing a couple of pay stubs, while others can be satisfied seeing the offer letter before employment starts. Of course, given your credit history they'd likely be on the cautious side - which might mean rejection or unfavorable terms.

You probably do have some options though. If you can get by on public transport for a while, try to do that. If, as you say, the local transport options are awful, think about getting a beater off Craigslist or something. It doesn't need to last you more than a few paychecks. Borrow from family if you need to. Or see if you can carpool with a friend or a colleague. If that's also not an option, try a good credit union first. They're probably more likely to reject you than a predatory "bad credit welcome" dealer, but they often have an interest in helping their members improve their economic situation, and might be willing to take a chance on you and a small used car loan. If all this fails and you get desperate, well, that's not a good negotiation situation to be in...

As for trying with random lenders and hurting your credit score, multiple hard inquiries in a short time span typically get grouped. So shopping around won't hurt your score much, if you do all the shopping around at the same time. Still, there are many pre-approval lenders (including credit unions) that can do a soft inquiry and give you an idea about whether you're likely to get a final approval or not. Maybe start with those to get an idea about it, as it shouldn't hurt your credit score at all.

Answered by Anyon on October 6, 2021

Add your own answers!

Ask a Question

Get help from others!

© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP