February 2, 2008 9:56am CST
My credit score is 537, my boyfriend has no credit. So what do you think would happen if we bought a car and put a down payment, and co-sign for the car. Do you think that it would make my monthly payments lower? The only thing I'm concerned about is monthly payments, and the most I'm willing to put down might me 3,000. I really want a nice car but how do i get low payments?
• United States
2 Feb 08
With your low credit score you are going to get a really hiigh interest rate. Your boyfriend having no credit sometimes can work against him as he has never had credit to show he can make payments on things on time. If you want a low interest rate you need to find someone with a good credit score. Since you are willing to put $3000 down that might help you out a little.
• United States
2 Feb 08
I work in a bank, so I talk to people all the time who are trying to get financed for a car. Most people pick out a car, and then try to make the payments fall into place. What often happens is that they end up with more monthly payment than they can handle. Let's look at the facts here...537 is not the best credit score to work with, and the fact that your boyfriend has no credit is going to mean that you likely end up with a higher interest rate when you get a loan. With a score of 537, you can expect a rate possibly as his as 11-15%. However, if your parents or someone else you know has a better credit score, getting them to co-sign with you may enable you to qualify for a lower rate. $3000 is a nice down payment, so you have that part covered pretty well. This is what I recommend... I have included a link below that will take you to a website that has a payment calculator. Figure out about what you can afford to pay each month for a car, then plug in the information considering the high interest rates and the length of time you want to finance the loan for, and play around with total amounts until you end up with the payment you can afford. Remember to consider that you are going to have to pay up to $1500 for tax, tag, and title that will be included in your payment. Doing this will give you an idea of the total amount you can afford to pay for a car while keeping your payments in your range. If you need any help, you can message me and I will help you out...good luck and have fun... here is the link... http://www.harvestersfcu.com/cal_payment.asp