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hi there! i had really bad credit a long time ago and in 1996 (in July) i had a repo. it's been 7 years and i have paid off a lot of my problems. i am wondering if my repo will be taken off this year. right now my credit score is 612 and i don't know if that is good or not. i want to buy a manual 4wd EX this august and i want to make sure i am not going to be paying like 15% or anything outrageous like that. can you help? thanks so much! dazy
 

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Hi,

A friend of mine has 6 something and he got honda's 3.9 apr. Be prepared to negotiate, bring references, and proof of income. Be ready to walk out on the finance manager if the don't give you the APR you want. It's doable, but may require more time shopping around.

a 612 isn't all bad, a 720 is EXCELLENT (just to put it in perspective).
 

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Dazy,

Fear not, you should be able to obtain decent finance rates. A score only begins to tell the story of ones credit, but your score is pretty decent. You can apply online with American Honda and then use that as a reference/negotiating guideline. Even if you get turned down online, you might still be able to go through American Honda.

What I would discourage you from doing is having a lending institution like lending tree or something similar, pull your credit. They will blast your credit out all over the place and lower your risk score.
 

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I was told by my saleslady that Honda does not look at scores. They review if youre paying like you should be. She also said that if Honda approves you . you will receive the promotional rate if offered. Honda financial services is about the best financing out there. Good luck!!
 

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Ok guys,

A few things on FICO scores:

The general break for "favorable" rates is 620. Anything below 620 is considered "problem credit". You will not get decent rates if you are below that cutoff, and you may get restrictions on your loan. The difference between someone trying to buy a car with a 615 and a 680 is night and day. Someone with a 615 may be looking at 8-11% on a new car loan, and someone at 680 may be looking at 5%.

Credit ratings go as high as 850 but you'll rarely meet anyone with a credit score that high. I know a few and they could all paid cash for their Porsches and BMWs. And they own several. Income is not a factor in FICO scoring, but you can't have ANY misses on ANY credit in 7 years, and you must have VERY low balances on ALL your credit. 700 is where the best of the rest live. If you get to 700, you'll quaify for favorable rates from people like Honda.

There are a LOT of sites out there that can help you understand and improve your credit ratings. I suggest that people check their credit every 12 months, and check it probably 3 months or so before a major purchase like a car, boat or house. Be careful where you get your credit reports from, especially if you are looking to get one that tells you what your credit score is. You want one that gets you the REAL FICO score, because not all do. I stupidly made this mistake myself so I am speaking from experience. Using a site like MyFICO.com ensures you'll get what you need.

The breakdown for determing your credit score is:

35% - Your Payment History
30% - Amounts You Owe
15% - Length of Your Credit History
10% - Types of Credit Used
10% - New Credit


Check the following sites for more info:

http://www.bankrate.com/brm/news/credit-scoring/20040128a1.asp?thisponsor=score

http://www.myfico.com/myfico/FAQ.asp


Good luck!
 
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