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I am looking to purchase a car. How does a charge off on your credit affect getting financing?? ?*

I am looking to get a used car. I have a charge off on my credit. How will it affect me getting auto financing??

Answers:

1) It will make it harder to get a loan and you will probably end up paying a higher rate of interest, making the total loan more expensive.

2) It will directly affect your ability to gain loan approval. If your credit score is still 650 and above, you should be fine. If it is below that, it might be harder to gain approval and your rates will be higher if you are approved. A charge-off is an indication that you failed to repay a previous financial obligation, which can be a predictor of future risk of default.

3) What's your credit score? Is the charge off paid or just sitting there waiting to go away? You will face a 12-25% interest rate.

4) A couple of things will happen: 1. You'll simply be denied based on how recent the charge off was 2. You'll be approved but a higher interest rate With credit lending being as tight as it is these days only the most sterling of credit holders will enjoy what's left of credit lending. A charge-off tells the prospective lender that you defaulted on a debt and the company lost money due to your inability to repay the debt so they may or may not want to take you on as a risk. If the charge off is recent, less than 2 years don't even bother or else get ready to pay mad interest.

5) If it less than 5 years old..it will have a big impact

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