Chances of getting an auto loan?

[Anonymous]

I've been in the process of massaging my credit back to a certain standard for the first time in my adult life. Long story short, I need to know where I stand with a potential of getting a new auto loan probably around October. I haven't pulled my credit scores from here yet, as I'm waiting until I get a bit closer until it's time. But I recently pulled my credit reports to see where I stand with what's left on there and here it is.

I have six 90 days lates with Nelnet from May 2013 for student loans. I'm currently trying to goodwill them through Ombudsman after a few unsuccessful attempts at goodwill letters. I have two 120 days lates from Great Lakes Higher Education from June 2012 for student loans. I'm currently in the process of trying to goodwill letter those as I've not been late for either lender since. 

I have a $64 collection from 2011 with Enhanced Recovery Company that I've sent a debt validation to and they're in the process of looking over that. From what I've read on here, that often means it'll be removed and I can just pay it with AT&T if it gets kicked back. So if the ERC collection is cleared, the only negatives I will have on my credit are from the student loan late payments. 

My total household income a year is around $58K or so. Currently, my DtI is currently around 15 percent, or so. My other main issue currently is my credit cards. I have total about $8,500 across eight accounts. I'm currently at around 90 percent utilization. I'm being VERY aggressive about paying that down. At my current pace, I should be down to about 39 percent utilization come October. 

So what I need to get an idea of is what are my chances of getting a car for around $19-20K? I'll still owe around $1,750 on my current vehicle and I'm going to trade it in. But it's only worth about $1,000 or so now. I should also have around $1K as a downpayment, if necessary. Also, would it be wise to take the money I'm using to pay toward my credit cards and go ahead and pay my car off, thus trying to find a new car with a higher credit utilization? Or if I continue to pay on my credit cards, is it better to pay them off as much as I can, or divide up my money and pay it evenly across all my cards, so that the individual utilization is lower across the board, as opposed to having some completely clear, but others up around 70-80 percent?

For what it's worth, my Credit Karma FAKO shows 623 for TransUnion and  627 for Equifax and Merrick Bank's FICO score shows 608. Sorry if this is long, but I'm just wanting to get an idea of where I'm at. 

[Anonymous]

you can get an auto loan but your payments and interest rates are going to be high.

[Anonymous]

What kind of interest rates will I be looking at?

[Anonymous]

just depends on who you get a loan from. If you get it from a credit union it will be decent.  Two years ago when my score was 615 a bout the new charger and my nterest rate was 9% could have refinanced it through my credit union for 2-3% later but didnt just paid it off early this year building my credit up with an auto loan on my credit resume. So the interest didnt bother me cause I already had cash to pay for it. I was just letting the loan grow for two years so my credit score could grow. If your affliated with military try Navy Federal or Usaa they have the best apr out there

[trant3]

if you can get the collection removed as stated and bring down your utilization to below 30-40 % range, you should be able get a loan I would say somewhere between 6% range and up depending on who you go with.

To answer your question about paying your credit cards, I would use the funds you were referring to towards the credit cards rather than paying off your auto loan as it would not help your credit profile. If you have cards that are maxed out, those should be addressed first. Hope that helps.