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R. Klein, EA
R. Klein, EA , Accountant
Category: Finance
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Hey thanks for your help answering my last question, Do you

Resolved Question:

Hey thanks for your help answering my last question, Do you have any idea if its easier to apply for a personal loan or a car loan? I am thinking around $12,000 loan. Like I said before I have a 660 credit score and made $30,000 last year. Do you know if I get denied how bad that looks on my credit score? Do you think I should wait to apply till my credit gets a little better or do you think I have a pretty good chance? Any advice on the best bank to apply?
Submitted: 3 years ago.
Category: Finance
Expert:  R. Klein, EA replied 3 years ago.

fastfile :

With a 660 score, you are unlikely to find any regular lender to give you an unsecured personal loan. The thing banks want before they make a loan is some guarantee of repayment and collateral is a good way to guarantee repayment. Therefore, they would be much more likely to give an auto loan before a signature type loan.

fastfile :

Second, a credit report is not affected by the acceptance or denial of credit. Each inquiry can have a slight negative effect on your score whether the lender grants you credit or not. The credit bureau does not get any indicator from the lender as to whether credit was granted or not.

fastfile :

If you are looking to buy a car, someone with a 660 WILL get on with a lender. The dealer WANTS to sell you a car. Lenders WANT to make a loan with collateral.

fastfile :

We cannot make any recommendations of lenders on this site, but before you go car shopping, spend a few minutes and visit with a few banks. When you go to the car dealer, they WILL offer you a loan through one of their lenders. With the pre-visit to the bank, you will know whether the car dealer's offer is good or not.

fastfile :

You do not have to take the dealer's offer!

R. Klein, EA and other Finance Specialists are ready to help you
Customer: replied 3 years ago.
What about getting a car loan for buying a car from a private party, is it any harder?

Thanks
Autumn
Expert:  R. Klein, EA replied 3 years ago.
Yes, it is slightly harder to get a car loan unless you buy from a licensed auto dealer (used or new).

Reason: Chance of back-dealing or fraud is higher when dealing with private parties.