Chances of approval

[Anonymous]

Hello, I was wanting some advise as I will be applying for a auto loan with NFCU next week. I provided my credit info below. I will also be having my sister co-sign for me, she has perfect credit in the 700's. What do you guys think my odds of getting approved are.

TU- 614

        Average Age-10 months- Oldest being 3 years

        11 Total Accounts

        12 Inquires

        10% utilization

EQ- 546

        16 inquires 

Ex- 632

       8 Total accounts

       4 Inquires

       16% UT

The baddies on all reports

2 30 day lates most recent in 2015

charged off One Main loan 6k

$355 Gecu overdraft charged off 

I am looking to request 13k and have an annual income of $19k. My sister makes $37k. I have no issue with the monthly payment. What do you guys think my odds are.

[SamsungHDTV]

Decent chance but only because of your sister. 

If your sister posted here and asked, should I co-sign for my brother? And posted your credit history, I would not recommend. I hope I didn't offend you, just a forewarning that if you miss any payments, your sister's pretty scores disappear. It also affects her DTI if she is planning to finance a car or house in the near future.

[jim44]

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@SamsungHDTV wrote:

Decent chance but only because of your sister. 

If your sister posted here and asked, should I co-sign for my brother? And posted your credit history, I would not recommend. I hope I didn't offend you, just a forewarning that if you miss any payments, your sister's pretty scores disappear. It also affects her DTI if she is planning to finance a car or house in the near future.

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OP,  You might find some subprime lenders who would take a chance on you without having your sister co-sign.  You may have a high apr but with a good payment history, it will help you rebuild your credit score/history. 

[StartingOver10]

OP, in my opinion, I think you should take the time to build your score so that you are at least in the 600's (all 3 FICO scores).  So you don't need a co-signer at all, I also suggest getting a much less expensive vehicle for yourself until you are able to increase your income. Having a vehicle is more than vehicle payments. It is also insurance and repair expense which you don't have, given your current income.  I suspect they l ask for a co-signer because of your current annual income of $13k and any vehicle loan will cost too much to support (high DTI) given that amount of income. 

It doesn't take long, depending upon what is on your report, to get your score up. Some have been able to increase their score more than 100 points in just a month or two. Others take longer.

Using the installment loan approach to increasing your score is the long, slow approach with the exception of the SSL through Alliant.  Using revolving accounts to increase your score is much faster, especially in the beginning when you have few positive tradelines.  

Visit the rebuiding forum or even the bankruptcy forum to see the thread of a specific blueprint of how to get to 700 in 24 months: http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

The initial steps are easy and will get you to above 600 more quickly than 24 months especially since only one of your scores show in the 500's now

It is a much better solution than asking anyone to co-sign for you. Co-signing when your income and credit is at its current level is inviting disaster for your sister and is likely to create long-term consequences for your relationship with her. If she co-signs she is tying up her credit so she can't get a car or home or possibly even rent anything due to her debt to income especially with your high-interest, sub-prime loan that you are likely to get if you qualify for one.

It is better for you to take the time to build your credit over the next few months and then get a vehicle or get a cash vehicle until you are prepared to purchase one on payments by yourself. JMO.