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Established Member
Posts: 16
Registered: ‎09-15-2012
0

630 FICO w/$10k downpayment

So here is the deal. I have 2 CC chargeoffs from 3 years ago which ruined my credit. I have been gainfully employed for 2 years, paid my car off, opened up $1000 secured visa and pay in full monthly, have no lates for 2 years on anything, current on all my student loans - never been late either. I make pretty decent money ($70k) but my credit scores are still low - which I understand. 

 

My question is what harm will I do if I try and apply for a new auto loan? Like I said I have $10k cash to put down and looking at around a $15-20k loan. Should I take a chance and apply? The reason I am aprehensive is because I was denied for a motorcycle loan ($6k) and had over 50% downpayment, That was back in March of last year. Not really sure why I was denied, but I know my chargeoffs had a lot to do with it.

 

I could wait till June and I will have had the secured card and paying in full for 8 months on that. However, I was thinking of a trick I could use to get a quick boost in my FICO. What if I took my savings and applied a portion of it each month to increase the balance of my CL on my secured card? After I receive a loan I can then pull whatever I want or need back away from the secured card and back into my savings. There is no fee to do this with my card. Or perhaps should I try and open up an unsecured card and pay on that for a few months. 

 

What do you guys think?

Regular Contributor
Posts: 177
Registered: ‎10-02-2012
0

Re: 630 FICO w/$10k downpayment

I think you have a very ggod chance of getting financed, albeit at a higher than ideal rate. Don't fret about the motorcycle loan...it's really difficult to finance a bike as they are considered luxury items by many banks.

 

Best of luck.

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: 630 FICO w/$10k downpayment

You will get an auto loan easy. You should probably also get a couple more credit cards. That part of the reason you are scoring so low.

Established Member
Posts: 16
Registered: ‎09-15-2012
0

Re: 630 FICO w/$10k downpayment

If I do pick up another CC how long should I wait before applying for an auto loan? I dont want too many dings on my credit.

 

Also, I should note that the two charged off CC have NOT been paid. One was Chase and is reporting a $0 ballance and the other is Crap 1 and they continue to report a ballance and continue to increase the balance monthly which I beleive is hurting my score. 

 

It is really a catch 22 with these charge offs because paying them will do nothing for my credit. I have let them sit and they will both reach the SOL next month. The total "debt" was only around $1500 combined, however since CAP One has continued to increase my balance for three years it has ballooned to over $1600 on the Cap One card alone. I refuse to pay them and will not pay unless I can deal with Cap One directly which apparently is not an option. 

Established Member
Posts: 16
Registered: ‎09-15-2012
0

Re: 630 FICO w/$10k downpayment

Would upping my CL on my secured visa help improve my score in the short term? I can up the balance by a lot at once or I can up it by $2-3k ever couple of months. I wonder if the scoring models will catch onto that. 

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: 630 FICO w/$10k downpayment

If you paid off the Cap one card your score would jump pretty good I bet.

Established Contributor
Posts: 505
Registered: ‎11-05-2012
0

Re: 630 FICO w/$10k downpayment

CO with 0 balance. this look good. but if you have CA or CO with balance i guess this will look bad to lender. if you paid ,i guess 90% will be approval

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Established Member
Posts: 16
Registered: ‎09-15-2012
0

Re: 630 FICO w/$10k downpayment

The only reason why I wont pay them is because I have to go through their contracted CA company; even though CAP 1 still owns the debt. They have gone so far as to say they will not accept payment from me.  Ive tried calling multiple times yet they always direct me to some third party company. Chase however has left me alone and sold the debt to a CA who still calls me, but has never reported nor filed for judgement. If I could pay what I "actually" owe and pay it to the OC then I would, but I refuse to deal with a contracted CA when the OC still owns the debt. 

Valued Contributor
Posts: 1,512
Registered: ‎09-14-2012
0

Re: 630 FICO w/$10k downpayment


bmartinta wrote:

If I could pay what I "actually" owe and pay it to the OC then I would, but I refuse to deal with a contracted CA when the OC still owns the debt. 


Unfortunately for you when you didn't pay the debt to the OC the first time around you lost that choice.  You can get your ego going full throttle and "refuse" or you can figure out how to get the Collection Agencies off of your report (ie PFD).  Otherwise pulling some kind of "trick" won't do you any good.

 

As far as your first question, yes you should be able to get financed for $25k-$30k with a 630 FICO and $10k down. 

Never take credit personally

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Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: 630 FICO w/$10k downpayment

If you want a mortgage loan (if you don't have one), you will need to pay Cap One but you will have to send a PFD letter to the collection agency that holds the debt. Once a card is charged off, it is purged from the OC's system so even if they wanted to help you, they couldn't. I think the unpaid CO and its increasing balance is hurting your score. Eventually, the balance will drop to zero and a new collection will report causing even more of a sting. Increasing your limit artificially won't be enough to offset this CO...you need to pay it.
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