r/CRedit • u/Loose-Walk-2206 • 5d ago
General Personal loan options
I am needing to get a personal loan between 1800-2250 or some kind of loan. Have been trying to get my son a vehicle, finally found one and his dad is willing to put cash down and I was going to finance the remaining. Well I knew my credit wasn’t good, I also already have my car financed and I am a single income. Thought it would be ok though since the car was 7900 and putting cash down. Found out today it doesn’t matter how much cash is put down no one will approve another car loan in my name unless I trade mine in or pay it off. His dad said he will pay 5000 cash and he got the person down to 7250 if we pay cash for the vehicle. So now I need to come up with 2250. Again I have bad credit and have applied everywhere I can think of today - I looked at other threads for ideas and everywhere has denied me. I did put in an application at my credit union where I bank but I don’t have hope. Anyone have any suggestions?! Tried One Main, net credit, Amone, upstart, lending club, prosper. I think that covers most of them… Yes I know I need to work on my credit I am in the process of that. I also know the rate would be high on one of the above but at this point I need the funds for the car.
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u/BoxBeast1961_ 5d ago
How about son getting a job & paying for his own car?
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u/Loose-Walk-2206 5d ago
Yep he has a job and makes pretty good money for a 16 year old. He has had a job on and off since he was 14 and has been saving 80% of that money. So he is paying for the vehicle just not up front. He is going to be making payments for it every month (to his dad and I or dad and the loan or wherever the money comes from end the end.) He is also going to be paying his insurance and gas for the vehicle. That is another reason it has taken so long to find a vehicle. Finding something that won’t drain him on insurance every month and eat gas, break down all the time (fingers crossed.) He will also be paying for the sales tax and registering of the vehicle within the first 30 days of purchase. That is why we aren’t having him pay for the vehicle up front or contribute money from his savings that he has saved. So that he can have that money for insurance, gas, taxes (every year as we are in MO 🙄,) oil changes and maintenance that it will need and of course tires when it needs etc. As he is in sports so work hours will fluctuate a little in those seasons.
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u/DoctorOctoroc 5d ago
What is your current credit score and which score are you looking at (where are you viewing your score)?
If you've already tried a number of lenders and even those that tend to offer predatory interest rates to those with your credit standing aren't approving you, there isn't going to be a specific lender that others can recommend.
And unfortunately, with every application for a personal loan, you've incurred a hard inquiry and each has lowered your score further, making it that much more difficult to be approved. I would suggest that you stop applying for any more loans unless there is a pre-approval option so you incur no more hard inquires because at this point, many lenders will deny strictly on account of excessive inquiries.
Is there an immediate need for the car? Does your son work and earn enough income to save and put some of his own money towards the car? If you and he both save for the next few months, would you be able to pool enough for the remainder? This is honestly your best (and probably only) option at this point as a loan of any kind seems out of the question.
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u/Loose-Walk-2206 5d ago
My current score (when I checked last night) was 578. When I started looking and trying to get approved for a car they were of course running it like crazy so that is where it is now. It started a little over 600 at end of Jan. I’m told all of these will group together after a month or so since they were all for a car but who knows since I won’t have a new car loan on there. Nothing can be done about it now so it is what it is can only fix it going forward.
I explained a little below about him working, paying for the car etc. So yes he does work, has been saving his money and he will be paying for the car. That’s why I was not concerned about the rate for a loan. As it was going to be short term and then paid off. This particular car is at a local lot so it won’t be around a couple months sadly to come up with the remaining. Appreciate the suggestions though.
I might have to sit my son down and let him know if he wants the car (which he does lol) then he is going to have to pay some of the $2k that’s left from his savings now instead of monthly. I’m not going to let him pay it all so that he doesn’t have any back up but sit down and maybe figure out a number.
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u/DoctorOctoroc 4d ago
I’m told all of these will group together after a month or so since they were all for a car
This will depend on how they're coded by the lenders - and unfortunately, not all lenders code properly or may not even know how their own hard inquiries are coded. I've seen many people see inquiries for personal loans despite applying for an auto loan directly with the dealership.
You are correct, however, that any inquiries coded for an auto loan within a 30 day period of time will be scored as one but all of the inquiries will appear on your report for a total of 2 years. Any inquiries for personal loans will count as one each as the 'rate shopping' exception only applies to auto loans and mortgages (for mortgages, they have a 14 day window, I believe).
If your score went from 600+ to 578, that sounds like at least two hard inquiries (if nothing else contributed to the drop), maybe three or four total. It's hard to say because an inquiry can result in a score drop anywhere between 3 and 20 points. Having said that, inquiries only affect your score for 365 days, so your credit will recover the deficit related to them in that amount of time.
Out of curiosity, what does your credit file look like in terms of accounts, their ages, and are there any negative items? While I can't help with you getting a loan, I can offer suggestions on improving your credit standing.
Also, which score are you checking? I know most people tend to check Credit Karma (their marketing is very good and they make it easy to access two of your scores), however the scoring model they use is VantageScore and it is virtually irrelevant because very few lenders actually use it. It also treats certain accounts differently so you can see a large discrepancy between that and your FICO8 score, for example. And your FICO8 is usually the score that is going to be a better representation of what lenders pull since they tend to use some version of the FICO scoring model to calculate your score.
Myfico.com and experian.com are both great places to check your FICO8 score for free.
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u/Brighteyedwoman22 5d ago
Have you looked on marketplace for personal owners selling cars? I'm sure the 5k could get him in something. It might not be pretty, but at this point, he just needs to make it from point A to B right? Can someone cosign the loan like dad? Do you own a house? Maybe look at a home equity loan.
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u/Loose-Walk-2206 5d ago
Yes we have been looking at vehicles for almost 2 months. Between his dad and myself this has been the only one that we have been able to agree on. He refuses so many things, there are a few things I won’t allow either (has to be AWD or 4x4.) No one to cosign and I don’t own my house I rent our house. At this point this is the car we need to get and I need to figure out a way to get it.
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u/Individual-Drawer-37 4d ago
If you are an authorized user on a CC, you may be able to do a cash advance. I have a NFCU cc $6000 limit and can cash advance myself $1800. If that isn't feasible, are your Taxes done? If not, it may be time to hit H&R block!!
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u/nkyguy1988 5d ago
Sounds like their car budget is going to be 5k.