01-30-2013 07:52 AM
Hello board, I currently have a fico score of 587 eq and 581 tu. Using the estimator, i can bring these scores up about 65 points by paying cc debt. Now I am desperatly in the need for a new car. ONly problem is I still owe about 4500 on my current vehicle(which has a blown motor now). WIll paying off the current loan or cc to help raise my scores best help me get a new car loan? Or should I pay half and half on both? Thanks for any advice in advance...
01-30-2013 08:35 AM - edited 01-30-2013 08:36 AM
What I have been told by many loan officers and car finance people is that CC utilization is a killer. Deal with that first.
If you get your utilization down you will actually (as long as your income is OK and you have no collections/judgements/etc) qualify for a 2nd auto loan. So you will have something to drive while you figure out what to do with the other car.
With a ~580 score I was able to buy a brand new Mazda 3 even though I already had an open loan for a much more expensive car.
01-30-2013 06:54 PM
01-31-2013 11:28 AM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.