Looking at getting new car loan. Need advice

[Anonymous]

Currently all of my credit scores are low 600s (average 618). I have very high utilization, around 92%. I will have this paid down to around 30% or lower in the next month or two.

I haven't had the best history with auto loans, had one with a few 30 day lates and a couple 60s.

Once I pay my cards down my DTI will be around 11% with an income of 85k. I'm looking at getting a new pickup with a 35k loan. Will I have an issue getting a loan in a couple months when my utilisation is reported back under 30%?

[Anonymous]

You shouldn't have a problem getting a loan. The issue will be with the interest rate. If you can hold off on buying a new vehicle until your scores increase that could garner you a better rate. 

[Anonymous]

Yeah, I'm not expecting a fantastic rate. I can handle a higher interest rate for a year or so before I refinance. I plan on making double, possibly triple payments.

[Anonymous]

I would hold off if you can to get that utilization down.  You will get a nice bump in scores so it will be worth it.  Then I would apply with one of the credit unions like DCU or Penfed and get a great rate from day 1.  No sense in paying any more interest than you have to, unless of course you need the car right now.

[Anonymous]

Well, i will need one this fall.

I will get my utilization down below 30% before I apply for a loan. I have a PenFed account and NFCU.

Should I get my utilization down lower than 30% before o attempt? I know theres no magic number and I can't be 0% (use cards for everything and pay them off along the way)

Just bought some home theater equipment which got my utilization up too high

[Anonymous]

I just got an auto loan from Penfed. They gave me an loan for 38k with 4.9% interest rate. My util is at 32% overall, and they ran my TU which was at a 636 when I got approved for my loan.

[Anonymous]

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@Anonymous wrote:
Well, i will need one this fall.

I will get my utilization down below 30% before I apply for a loan. I have a PenFed account and NFCU.

Should I get my utilization down lower than 30% before o attempt? I know theres no magic number and I can't be 0% (use cards for everything and pay them off along the way)

Just bought some home theater equipment which got my utilization up too high

The lower the better but under 30% will be fine I think.  Both NFCU and Penfed are great so you cannot go wrong either way.  Both will use Equifax data for car loans so make sure that you take a peek at that before you apply so you know your scores as good as can be before you apply.  

[Anonymous]

Yeah, currently my Equifax is frozen so myFico cannot get a good number for me just yet. I forgot I had it frozen, now I forgot my pin haha. So once I am able to get the freeze off I will pull my Eq report next month just to see where it's at than again I'll pull all three before purchase.

[Anonymous]

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@Anonymous wrote:
Yeah, currently my Equifax is frozen so myFico cannot get a good number for me just yet. I forgot I had it frozen, now I forgot my pin haha. So once I am able to get the freeze off I will pull my Eq report next month just to see where it's at than again I'll pull all three before purchase.

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What kind of truck are you going to get?

[Anonymous]

Looking at a new f150 XLT