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Before Applying for Auto Loan

Before Applying for Auto Loan

I have a FICO of 699 and have been rebuilding my credit, I basically only have one credit card, which I had charged a little over 300 w/ a 500 balance however I paid it off so it is now only 30 however this isn't reflected on my Fico for probably 20 more days. Should I wait the until my credit card reflects the new lower balance before applying for a car loan?

Message 1 of 5
4 REPLIES
Member

Re: Before Applying for Auto Loan

Yes, you should wait until your new balance is reflected and updated on your credit report. Your balance plays a role on your scoring.

 

I too am waiting till the 9th of this month for it to update before applying for a loan.

 

Good Luck.

Message 2 of 5
Senior Contributor

Re: Before Applying for Auto Loan


Eve23 wrote:

Yes, you should wait until your new balance is reflected and updated on your credit report. Your balance plays a role on your scoring.

 

I too am waiting till the 9th of this month for it to update before applying for a loan.

 

Good Luck.


+1.  And because you are going from 60% utilization to less than 10%, you can expect to see a fairly nice score bump.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Message 3 of 5
Regular Contributor

Re: Before Applying for Auto Loan


Walt_K wrote:

Eve23 wrote:

Yes, you should wait until your new balance is reflected and updated on your credit report. Your balance plays a role on your scoring.

 

I too am waiting till the 9th of this month for it to update before applying for a loan.

 

Good Luck.


+1.  And because you are going from 60% utilization to less than 10%, you can expect to see a fairly nice score bump.


+1 Walt is wise!

Age: 22 //Cards: Chase Freedom, Chase Amazon Visa, Discover IT, CreditOne, CapOne Quicksilver, CapOne Cash, Walmart, Barclaycard, Citibank BestBuy, NavyFederal Visa Signature cashRewards //AAoA: 1 Year 3 Months (but going down quickly Smiley Tongue) //CK:692, Sesame:656
Message 4 of 5
Valued Contributor

Re: Before Applying for Auto Loan

I hope you have other lines on your credit report. If the only thing on the report is one low limit credit card. The dealer might give a high rate because of the thin file.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 5 of 5