Auto Loan - Credit Score vs Credit Utilization

[Anonymous]

Hi All,

I am nervous to go down to the dealership.. because my credit utilization is going to reflect 38% roughly (down from 70%). Right now my credit score reflects a 692 for Experian. When my credit reports update in the next 11 days.. my 692 credit score should be at least 700.

* 41,000 a year i make

* My last auto loan i had with chase and i paid every bill on time

In your view -

* Do you think i will be able to get some kind of an approval (hoping for around 18k-20k loan) - regardless of the interest rate?

* Do you think lenders/dealerships would look past the 38% utilization rate in favor of a score of around 700-705?

11 days and counting .. before i stop down there... god help me

[Anonymous]

38 percent of what is the main question. If you have 3k in limits yes, if you have 70k in limits your dti probably wont work. Debt to income is a factor, housing payment, total of all bills on the credit report etc. 

[Anonymous]

I agree.  I had an auto loan with Chase at first but I owed maybe 5k in cc debt.  So was instantly approved for the BMW select plan here in FL.  They will definitely factor in all of your other bills.  If your utlization stays low, you'll be fine.  

[Anonymous]

My apologies , it would reflect $10,481 in credit card debt out of a total limit of $27,450. The cards would look like this in roughly 11 days:

Card 1 - 4079/6000

Card 2 -0/5800

Card 3 -0/4200

Card 4 -3429/3500

Card 5 -2973/3000

Card 6 -0/2000

Card 7 -0/1250

Card 8 -0/1000

Card 9 - 0/700

* Card #4 and 5 report way later next month.. after the 11th ... i also dont have a mortagage payment.. but i do try to help my parents when possible (im 29).

* I also have 3 defered student loans totaling $10,488

* I have been employed at my company for 10 years about

[CJIII29]

Need to pay down that credit card debit.

[RussianPassion]

You'll be fine. DTI is more important than utilization. Plus you have plenty of cards with 0 balance telling lenders that are you are not balooning your debt. Worst case they will approve you and give you a MAX payment. It will be up to you to find a car that fits within the payment and/or adjust your downpayment.