Just had a 20 yr old customer come in with $2500 down and a 2 yr job with a decent income. Now had he been a "ghost" (a totally blank credit file) like he thought he was I probably could have gotten him approved with a decent APR on the car he wanted.
It turns out he wasn't a "ghost", and had three small collections. This changed everything for me and getting him approved. He had no positive credit to counter his negative credit, and this shows a bank that for someone so new to the credit game he's certainly heading down the wrong path. My list of lenders that will approve him has now shrunk from about 7 to 3, and those three don't have very good terms.
Because he obviously hadn't visited my site and taken my advice to know his credit score before hand, he left out in a car that was nowhere near the quality of car he was originally looking at, and had to go through a bank that charges a 24.99% APR. His finance charges were almost as much as he was financing for the car. That's crazy!
Moral of this story, know your credit score. Go to MyFico Fico Scores/Reports and know what your score is prior to going to dealership. This way you can maybe try to clean the little stuff up before buying. I the long haul this could save you thousands in finance charges.
In the mean time...
Take care and beware,
J the Car Guy
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