05-06-2017 08:53 PM
Hello, im looking to see if I would qualify for an auto loan. All feedback is appreciated. Im looking to apply through NFCU.
Credit Score: 612 Equifax score 8 ( I plan on paying down some credit card balances and Myfico simulator states i'll be at 639)
length of Employment: 2 years
Previous Loan Experience: N/A
Debt-to-Income (DTI): Have no bills besides utilities
Year of Car: 2013
Requested loan term : 60 - 72 months
Down payment amount: $1000
10 credit accounts all being paid and never late.
1 charge off account unpaid - $6k One Main - Nov 2015 was the first missed payment
1 collections unpaid- 6k for One Main - date assigned Jan 2017
1 charge off paid - Bank overdraft $355
Any suggetions that will help me will be much appreciated.
05-10-2017 07:06 AM
Need to know your debt to income ratio. Do you have rent or mortgage? DTI is not just credit, but also your rent or mortgage paymnent in relation to your income.
05-15-2017 04:32 AM
I would work with a credit union. That One Main account is going to be your biggest barrier, if you could negotiate that debts with the collectors you would be better off. Open collections like that are pretty big red flags. A dealer will likely get you a loan but the interest will be high so trying a credit union first is going to be worth the effort.
05-18-2017 11:48 AM
I think you would get approved at higher interest rate...probably around 21% with $1k down for a $12k car... do you currently have previous auto loans? If not then it will be a bit tough but doable with a higher interest rate.
Auto loan lenders wnat to see how well you pay your car payments, not much more emphasis is placed on other loans. With no other auto loans on your reports then they feel that they are taking a bigger risk. Refinance after about year once you got some auto credit under your belt.
Example, my friend who works for one of the largest BMW dealers in the nation sees guys who come in with a score in the high 500s and get Tier II approval because they do pay their car payments on time and not much else..
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.