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sgentile87
Posts: 7
Registered: ‎06-21-2013
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First time buyer, opinions on my approval odds?

Hello,

 

First post here.. First here is my credit situation:

 

I have a history including several collections that are ALL now paid in full. I have a small limit credit card in decent standing as well. I am 25 years old and looking to purchase a new car for $27,000 and intend to put around $5k - $7k down payment so the loan would be about $20,000. I make $60,000 per year and have no debt besides the small credit card. I can have references furnished and show paystubs... I have been actively employed in my career field for over 3 years. I have a few hard inquiries from when I applied for a car last year before cleaning up those previously mentioned collections accounts. My myFICO score for EQ is 615.

 

What do you think? Let me know if you want more info.

 

Thanks


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Established Contributor
Exonumist
Posts: 582
Registered: ‎07-03-2012
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Re: First time buyer, opinions on my approval odds?

I would think your good to be approved. The question is going to be more about the interest rate. Checking out some local credit unions would probably be your best bet. 


New Member
sgentile87
Posts: 7
Registered: ‎06-21-2013
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Re: First time buyer, opinions on my approval odds?

@default4 thank you for reply

Starting Score: EX-609 EQ-613 TU-626
Current Score: EX-609 EQ-649 TU-626
Goal Score: 700


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StartingOver10
Posts: 4,060
Registered: ‎03-06-2010
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Re: First time buyer, opinions on my approval odds?


sgentile87 wrote:

Hello,

 

First post here.. First here is my credit situation:

 

I have a history including several collections that are ALL now paid in full. I have a small limit credit card in decent standing as well. I am 25 years old and looking to purchase a new car for $27,000 and intend to put around $5k - $7k down payment so the loan would be about $20,000. I make $60,000 per year and have no debt besides the small credit card. I can have references furnished and show paystubs... I have been actively employed in my career field for over 3 years. I have a few hard inquiries from when I applied for a car last year before cleaning up those previously mentioned collections accounts. My myFICO score for EQ is 615.

 

What do you think? Let me know if you want more info.

 

Thanks


Check your report to see why it is showing a 615 score. Is there something else holding your score down? Do you pay the balannce on your card prior to the statement drop? If not, do that so your score will increase. Paying in full monthly doesn't do any good for your score unless you pay before the statement drops, especially on low limit cards.

How long has it been since you cleaned up your derog's? If everything is straightened out now, you might wait a month or two to see if the score increases. You will get hit pretty hard on your interest rate because you are a first time auto buyer and your score is low.

 

Or, better yet, go to a credit union and get your approval there. Don't even mess with the dealership. They will give you an insanely high rate.

New Member
sgentile87
Posts: 7
Registered: ‎06-21-2013
0

Re: First time buyer, opinions on my approval odds?


StartingOver10 wrote:

sgentile87 wrote:

Hello,

 

First post here.. First here is my credit situation:

 

I have a history including several collections that are ALL now paid in full. I have a small limit credit card in decent standing as well. I am 25 years old and looking to purchase a new car for $27,000 and intend to put around $5k - $7k down payment so the loan would be about $20,000. I make $60,000 per year and have no debt besides the small credit card. I can have references furnished and show paystubs... I have been actively employed in my career field for over 3 years. I have a few hard inquiries from when I applied for a car last year before cleaning up those previously mentioned collections accounts. My myFICO score for EQ is 615.

 

What do you think? Let me know if you want more info.

 

Thanks


Check your report to see why it is showing a 615 score. Is there something else holding your score down? Do you pay the balannce on your card prior to the statement drop? If not, do that so your score will increase. Paying in full monthly doesn't do any good for your score unless you pay before the statement drops, especially on low limit cards.

How long has it been since you cleaned up your derog's? If everything is straightened out now, you might wait a month or two to see if the score increases. You will get hit pretty hard on your interest rate because you are a first time auto buyer and your score is low.

 

Or, better yet, go to a credit union and get your approval there. Don't even mess with the dealership. They will give you an insanely high rate.


I have a lower score because of the high amount of hard inquiries it appears as well as short credit history, being only a few years.

 

Also, what credit union would you suggest if you know of any in NJ? Looking online I can only find some that require military or state work affiliation..

 

Thank you


Starting Score: EX-609 EQ-613 TU-626
Current Score: EX-609 EQ-649 TU-626
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sdotlow
Posts: 82
Registered: ‎05-06-2013
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Re: First time buyer, opinions on my approval odds?

A lot of credit unions have easy ways to get in.  Becoming an affiliate through joining a certain club.  Having a family member that is eligible makes you eligible.  Lots of ways to get in!

 

Also, if you're not in dire need of getting a vehicle, i'd advise to wait.  APR can be really brutal with low / bad credit.  Building up your credit may be worth it, especially if you're as low as you say you are.


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New Member
sgentile87
Posts: 7
Registered: ‎06-21-2013
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Re: First time buyer, opinions on my approval odds?

Would it help to have my fiance cosign with me?  I believe her credit score is between 675-700, with a fairly thick history, including 4-5 cars.  She currently owes probably around 20,000 on her current car and only makes around 40,000/year.

 

Thanks guys!


Starting Score: EX-609 EQ-613 TU-626
Current Score: EX-609 EQ-649 TU-626
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sdotlow
Posts: 82
Registered: ‎05-06-2013
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Re: First time buyer, opinions on my approval odds?

Cosigning would do the trick.  Just make sure you apply around to get a really good rate, then try and have the car dealership try and beat it.


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
New Member
sgentile87
Posts: 7
Registered: ‎06-21-2013
0

Re: First time buyer, opinions on my approval odds?

Thanks for the reply, could you suggest any lenders to try first that you have experience with?

 

I will have to update this as my loan journey continues!


Starting Score: EX-609 EQ-613 TU-626
Current Score: EX-609 EQ-649 TU-626
Goal Score: 700


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StartingOver10
Posts: 4,060
Registered: ‎03-06-2010
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Re: First time buyer, opinions on my approval odds?

Before you get a co-signer, see if DCU will finance you at a decent rate. I haven't used them personally, but a bunch of people on here have and seem to post good experiences.

 

https://www.dcu.org/ 


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