iowagary

I'm 24, have completely clean credit (but only have had credit for maybe 5 years with no real loans on it - just credit cards) and have a FICO of 575. I applied for a loan from capital one (who lists the low APR of 3.95%) and got approved... but at 5.45%. I called them and they said they consider lots of things, but FICO isn't it. The low dealer APR right now is 4.9% - how easy is that to get. Also, does anyone else have real experience getting loans somewhere (preferrably from someone online) and actually getting the low rate? I'm thinking of trying eloan.com, but they seem so similar to capital one that I think I might get the exact same results. There is a credit union around here I could join who lists 4.7% as their low APR, but I don't know if they'd be any easier, and I'd really like to get something lower if possible... I'm in Seattle if that makes any difference.

Ideas?

JasonH

The Capital One rate you got is good for your FICO. The Scion finance rates are tiered, the best being over 700 or 710, I forget which. I was just shy of 700 and got the second best rate, which was 5.15%. You would probably be tier 3 or 4, which are around 10% and 12% in this area. Check your dealer's website, they should have their rates posted.

iowagary

Man... disregard my first post. What I meant to say was my FICO was 757, not 575 - that changes things, I know. Any new comments?

scarab8

I got 4.4 for 5 yrs. last week near Chicago. FICO 780

JasonH

You should be able to get the lowest rate through Scion. Put in the credit app with your dealer and see what they say. I did mine over the phone and it took virtually no time to get approved.

erc21

Got my tC on 6-29, and was 20 at the time (21 now, lol), and have only had a credit history since Christmas Eve of last year. I got 4.25% for 60 months, go figure.

iowagary

I have a feeling the dealers are more likely to give their lowest rate because they're making money on the car and maybe the loan, if you finance with them. A loan company would only be making money on the loan, so less incentive. I'd really like to have a pre-approved loan to take to the dealer, but I might just call them up and see what they say too.

KaPGuN

through the college grad program? b/c the qualifications are much less stringent for that, you just cant have any derogatory credit.

miatC

Remember that each place you apply for credit will cause a small reduction in your credit score. It's called a 'hard inquiry'. It takes a few months for those to clear from the record, so if you apply to a lot of banks/etc. your rate could go up if the earlier inquiries have shown up on the credit score. Don't stress about rates too much- for a 60 mo. loan, +1% makes the payment increase about $5/mo/10K financed. Shorter terms of loans are a better way to save on total interest paid.

Milhamscion

With that score you should qualify for teir one with Toyota Financial Services. They do look @ other factors as well, but you should be ok. In my region teir 1=%4.65