Reply
Valued Member
michintom
Posts: 37
Registered: ‎01-11-2013
0

Re: Almost ready for a new auto loan?


MovingForward_2012 wrote:
That's going to be a hard sell. I wish I had better news for you. Probably not impossible as it is slightly better than a $16K car making $16K. But typically you don't want to purchase a vehicle that cost the same as your salary. Can you afford a $550 car payment?

I sure can.  I only pay my cell phone payment, gas, and food.  I probably spend less than 10% of my monthly salary :smileyhappy:


Starting Score: 660
Current Score: 691
Goal Score: 850


Take the myFICO Fitness Challenge
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Almost ready for a new auto loan?

I guess I should add, get your debt to income ratio as low as you possibly can before applying. If you get your scores to 700, they may let you lease the base model with no upgrades.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Almost ready for a new auto loan?

No rent? Is that solid for the next 5 years?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Member
michintom
Posts: 37
Registered: ‎01-11-2013
0

Re: Almost ready for a new auto loan?


MovingForward_2012 wrote:
I guess I should add, get your debt to income ratio as low as you possibly can before applying. If you get your scores to 700, they may let you lease the base model with no upgrades.

My debt to income ratio should be 0% by end of this month.  Also, would it be wiser to go with a certified used vehicle?


Starting Score: 660
Current Score: 691
Goal Score: 850


Take the myFICO Fitness Challenge
Valued Member
michintom
Posts: 37
Registered: ‎01-11-2013
0

Re: Almost ready for a new auto loan?


MovingForward_2012 wrote:
No rent? Is that solid for the next 5 years?

Yup.  No rent for the next 5 years and nothing would probably change in the next 5 years :smileyhappy:


Starting Score: 660
Current Score: 691
Goal Score: 850


Take the myFICO Fitness Challenge
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Almost ready for a new auto loan?

It would, if you can get the same model you want for less, yes. Leasing can be an option too if you bump your scores just a little bit more as your lease payment would be $150 per month cheaper. I lease a $35K car as I didn't want to pay $661 per month. I make $96K a year and still didn't want to pay almost a $700 per month payment. If you have no rent for the foreseeable future and can shrink your debt as low as it will go, they might just do it for you.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Almost ready for a new auto loan?

As without debt you appear to make $60K a year with debt. Hopefully that makes sense.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Almost ready for a new auto loan?

Lastly, if you don't mind the higher payment with financing, you could give it a try now after you minimize your debt. Later on, you could always refinance the lower principal in 3 years if you happen to need some of your money back for an apartment, condo, whatever.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Member
michintom
Posts: 37
Registered: ‎01-11-2013
0

Re: Almost ready for a new auto loan?


MovingForward_2012 wrote:
Lastly, if you don't mind the higher payment with financing, you could give it a try now after you minimize your debt. Later on, you could always refinance the lower principal in 3 years if you happen to need some of your money back for an apartment, condo, whatever.

Thank you for all the replies.  I'll try next month after I check my scores.  I tried the FICO score simulator and the simulator showed I should be anywhere from 680~720.  I don't know how accurate the simulator is but once my FICO score is updated next month, I'll give it a shot.  :smileyhappy:


Starting Score: 660
Current Score: 691
Goal Score: 850


Take the myFICO Fitness Challenge
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Almost ready for a new auto loan?

Sounds good. Best of luck to you! :smileyvery-happy:

I just started using score watch so I'm not sure how accurate it is either but I do know lower utility usually means higher score!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+