Can I Expect The Loan I Want?

[Anonymous]

Any help from those with experience would be greatly appreciated.

My situtation:

24 years old.

5.5 year credit history.

6 credit card lines.

No mortgage, no auto loans, no student loan tradelines

2 accounts were 60 days past due over a year ago.

1 account was 30 days past due 1 month ago (I paid off the balance, but not the remaining interest of only $17, and eventually went delinquent b/c I thought it was paid off.

Currently have only ~$2000 in CC debt on over $9000 in CC maximums.

SALARY not commission of over $4000/month.

No rent currently, living with family.

Scores show as high 500's...about 590, 580.

I am looking to buy a new car in the $25,000-35,000 range. My downpayment is flexible, but I want to keep it low or none at all.

I was turned down by Capital One for a new auto loan...any suggestions on where to turn?

[SCF]

Hey Ken, welcome to the forums!

I think you have a decent chance of getting the loan you want if you do a couple of things first.  If you have an otherwise good history with the card with the 30-day late, try to GW (send a letter/make a call asking for a "goodwill adjustment" to their reporting) and see if they will remove that late.  You can find examples of GW letters at the Rebuilding Your Credit board.  Also, try to pay down your CC debt so that you are utilizing 10% or less of your available credit.  Those two things should help your scores a bit, although I really don't know how much, someone else in similar circrumstances to yours might be able to lend some advice there.

Once you've done what you can to improve your scores, I would take them to a bank that you already have a relationship with or a local CU (credit union).  Those will usually be the places who are more willing to work with people with lower scores and provide better rates.

Good luck!

[Anonymous]

Thanks for the quick reply!

The CC that I was recently delinquent on, I was 30 days past due on over 1.5 years ago. Other than that, it is about a 3.5 year old account that I don't really use now. It was a Circuit City card, Chase owns the account though.

I am close to paying off all of my balances, but doing so in the next month or two will make me not have much in terms of cash for a down payment.

The car I am looking at is an Infiniti. The sales guy here near me said I might qualify with their financing company with their College Graduate program which essenitaly makes it easier to qualify for a loan if you graduated in the last 2 years. DOES ANYONE HAVE ANY EXPERIENCE WITH THIS? If I qualified easily for this, I would be buying the car this weekend. But I dont want to risk being turned down and having the inquiry show on my report when I keep looking for a loan.

More help would be greatly appreciated!!

[Anonymous]

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@Anonymous wrote:

Thanks for the quick reply!

I am close to paying off all of my balances, but doing so in the next month or two will make me not have much in terms of cash for a down payment.

The car I am looking at is an Infiniti. The sales guy here near me said I might qualify with their financing company with their College Graduate program which essenitaly makes it easier to qualify for a loan if you graduated in the last 2 years. DOES ANYONE HAVE ANY EXPERIENCE WITH THIS? If I qualified easily for this, I would be buying the car this weekend. But I dont want to risk being turned down and having the inquiry show on my report when I keep looking for a loan.

More help would be greatly appreciated!!

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A salesperson will tell you just about anything to get you in the showroom! Yes they have incentives for graduates however they are normally $500 off the msrp it will not make the financing go any smoother with that said.... If you neg the car's price you can get that anyhow. NEVER buy a car on the weekends!!! Most banks are not opened on the weekends and you can get into a sticky situation!

[bott6698]

Hey Ken, I am in a similiar situation. my scores are 580 or so on TU and EX and 625 on EQ.

My car dealer shopped me through so many banks and could not get me any kind of financing. 

I also decided to try my local CU since they only pull EQ and I found out they not only pull the EQ

score which they felt was fine but calculate your BNI index or Bankruptcy Navigator Index. Basically means

how much of a chance based on credit limits to balances that I could go Bankrupt.. I was approved for the loan

from the CU but at 16.9% on a 35k suburban FORGET IT!.... My goal is on the 15th of January to pay down

all CC's to help my UTL as it is the biggest score killer for me. 

My advise is to listen to the other poster SCF on here and GW and Pay down CC balances to bring UTL good before

you apply as you will just waste an inquiry unless you want to pay a HIGH interest auto loan...

Also I would add to buy a copy of your scores from Myfico and use the simulator. I used the simulator and 

it said if I pay down my CC balances by 2000.00 in just one month I would be between 675 and 705 on EQ. 

So play with the simulator and see what it has to say...

Message Edited by bott6698 on 01-02-2009 10:01 PM