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Although I wish I could qualify for the low rate Honda is offering, alas, I cannot. I have never bought a new car before, but many used cars, most of which were not financed. I am self employed, have a very decent income and lots of property. I have always received a great rate when purchasing property with commercial loans from my bank, but i was shocked at what my dealer offered me. First of all, I found out my credit score was 580 and my wife's was 615 (this was not too surprising after the year we had and had 3 late payments on building mortgages). What really did surprise me was that my Honda Dealer first offered me a rate of 17%. After I started to walk out, it quickly dropped to 11% if I brought in my bank statements to prove income. I got an 8% car loan for 36 months from my local bank on a used car i purchased last month with no hassle. Am I expecting too much looking for the same rate on a 60 month loan for this new van? Thanks!
 

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I've had two short sells this past year so my credit score is 659. I got a rate of 3.9 for any term. According to Experian, the floor of a Medium Risk person is a Fico of 626. If your wife has he higher score, try running all 3 agencies and tell the dealer to use the highest score. Also see if another dealer would do better. 17% is robbery.. also does the percentage depend on down payment?
 

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they ran it all three, 580 was my best 615 was her best we were all surprised. they said I would HAVE to put money down to get the deal done, which is not a problem, but I thought that was a bit unusual as well.
 

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With scores around and higher interest rates, banks will usually require a down payment because of the higher risk for default. Also, we cant use just whatever score is highest. Some banks only use the Experian score or one of the other 2 to get an approval. The past few years, Honda has been terrible with low tier interest rates and other banks would be the way to go, which I suspect they did with the 11%. But the one thing you don't want to do, is go around trying to find the best rate as your score will end up alot worse than it is
 

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I haven't ever had any credit problems, but I did note that at the honda dealer they tried to get me to bite on a high rate at first. I went somewhere else and got a much lower rate. I think they just try to get people that dont know better.
 

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With scores around and higher interest rates, banks will usually require a down payment because of the higher risk for default. Also, we cant use just whatever score is highest. Some banks only use the Experian score or one of the other 2 to get an approval. The past few years, Honda has been terrible with low tier interest rates and other banks would be the way to go, which I suspect they did with the 11%. But the one thing you don't want to do, is go around trying to find the best rate as your score will end up alot worse than it is
You sound like you work at a dealership Jason. ;) As far as credit goes, I believe you are not punished for rate compare. Multiple checks during a short period of time I believe only counts as one hard inquiry?
 

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Rates aren't set on credit score alone. What is your driving record, tickets. accidents.
 

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Not judging your situation OP, but you are probably better off saving up a larger down payment than taking out a large loan at 8% or higher. That's a lot of interest to be paying in a low/zero interest rate environment.

And you may also want to review your credit and dispute what you can, and search for inaccuracies which may be causing your score to be lower than it is.

GLTY.
 

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Rates aren't set on credit score alone. What is your driving record, tickets. accidents.
Hi,

Can you please show me a link where rates can be linked to driving record? I've never seen any credit extensions that have or even be able to factor in your driving record.
 

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A lender doesn't check your driving record to determine interest rates.

It does irritate me, though, that insurance companies check credit scores in setting rates.
 

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Oh, and I forgot to ad, check with your credit union. (They're easy to join if you don't presently belong.)
 

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I will give yourself 4-6 months to do "cleaning" fix your credit or any errors. I need to look at my mine.

Don't too open many accounts. I am getting worried because my wife open few accounts.

Credit Union is one way to go. Check out Federal or USAA bank. There are some banks that can do better than CU. All you have to do is Shop.
Be Caution how you shop.
 
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