Credit Card Center Advertiser Disclosure

Reply
Contributor
Posts: 82
Registered: ‎04-15-2015
0 Kudos

Ford motor credit, turning in my lease

Hi everyone,

 

I'm currently in a 24 month lease with ford. My lease is up in February but I got a call saying they're doing early bird turn in where I can waive the remaining payments and get into something new. I have a few qestions regarding this process. First of all my utilization is a lot higher than when I got the car back in 2015 (up to the high 80% up from about 50% in 2015). Do they do a hard pull for a new lease? I have no lates or no new baddies since my original lease. I'm worried about a need for a consigner due to my score. Experian has my score as 630, 668 as auto score 8 and 606 as auto score 2, discover shows 612, cap one credit credit works show 571. I'm debating on waiting a few months to lower my utilization. Any advice would be appreciated!

Valued Contributor
Posts: 1,478
Registered: ‎01-31-2008

Re: Ford motor credit, turning in my lease

Yes, they will pull credit again when applying for a new loan/lease. 

 

Go to Capitalone Navigator and see what they might offer you as a loan. This is a Soft pull (SP) unless you go through with the financing. My guess is your interest rate will be fairly high with an 80% utilization on your cards.

 

It sounds like Ford may have given the dealer some cash to help people trade up/in OR it is just a sales gimmick and they will bury the cost in the fine print. It is model year end and I am sure they are needing to move some vehicles.

 

I would say to hold off on trading in early and pay that utilization down as low as possible. Also, read up on leases as they can be tricky but not impossible to get a good deal. 

Established Contributor
Posts: 657
Registered: ‎06-04-2015
0 Kudos

Re: Ford motor credit, turning in my lease


Appleman wrote:

Yes, they will pull credit again when applying for a new loan/lease. 

 

Go to Capitalone Navigator and see what they might offer you as a loan. This is a Soft pull (SP) unless you go through with the financing. My guess is your interest rate will be fairly high with an 80% utilization on your cards.

 

It sounds like Ford may have given the dealer some cash to help people trade up/in OR it is just a sales gimmick and they will bury the cost in the fine print. It is model year end and I am sure they are needing to move some vehicles.

 

I would say to hold off on trading in early and pay that utilization down as low as possible. Also, read up on leases as they can be tricky but not impossible to get a good deal. 


+1

 

Additionally, I would refrain from obtaining another vehicle with a payment until you've worked out your debt situation.

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Sept 2017: EQ 679/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving
Contributor
Posts: 82
Registered: ‎04-15-2015
0 Kudos

Re: Ford motor credit, turning in my lease

Thanks for the feedback. I've had some major purchases recently and am in the process of paying down my cc debt and should be able to do so in 3-4 months. @SteelerNyc when my lease is up in February and my debt should be down to the 20-30% range. The main reason for my post was looking for advice on what my approval odds were given my current situation.

Valued Contributor
Posts: 2,457
Registered: ‎03-28-2017
0 Kudos

Re: Ford motor credit, turning in my lease

Is that 80% aggregate or 80% on a single account?

 

What's the HIGHEST utilization you have on any one account?

FICO8 3/17 550EX, 570TU, 559EQ
FICO8 10/17 710EX, 693TU, 734EQ -- almost 700 club!
Gardening since Aug 7, 17
Contributor
Posts: 82
Registered: ‎04-15-2015
0 Kudos

Re: Ford motor credit, turning in my lease

87% total utilization.
Valued Contributor
Posts: 2,457
Registered: ‎03-28-2017
0 Kudos

Re: Ford motor credit, turning in my lease

Your highest card has 87% utilization?  That's the question I asked -- what's your highest utilization on any one card?

FICO8 3/17 550EX, 570TU, 559EQ
FICO8 10/17 710EX, 693TU, 734EQ -- almost 700 club!
Gardening since Aug 7, 17
Contributor
Posts: 82
Registered: ‎04-15-2015
0 Kudos

Re: Ford motor credit, turning in my lease

Sorry I misread your post. My highest card is at 93%. Working hardest on getting each card as low as possible but focusing on that first.
Valued Contributor
Posts: 2,457
Registered: ‎03-28-2017
0 Kudos

Re: Ford motor credit, turning in my lease

Any utilization that posts over 89% is considered "maxed out" and can cost you significant amount of FICO points just on that notation.  Remember that if you do pay that 93% down to 89% but it gets interest posted, that interest may post at statement cut and then report more than 89% again immediately.


So you want to pay down to 88% minus whatever interest is going to post so that it reports less than 89%.  That will help return some FICO points -- make sure NO accounts post more than 89%.

 

Getting a new car right now doesn't make financial sense from my napkin math.  Since your lease is up in February, I'd carry it til then and cut your spending everywhere so you can pay all your cards down to below 40% individual utilization and as low aggregate utilization as is possible.

FICO8 3/17 550EX, 570TU, 559EQ
FICO8 10/17 710EX, 693TU, 734EQ -- almost 700 club!
Gardening since Aug 7, 17
Contributor
Posts: 82
Registered: ‎04-15-2015
0 Kudos

Re: Ford motor credit, turning in my lease

Thanks! If it's possible I can get into a lower payment I'll explore turning it in but otherwise I agree with you and will wait it out.

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.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* 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.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.