@Anonymous wrote:
My first car loan was with a cosigner. car was paid off and now am needing another loan. (Car loans was $24k)
Income is $120-140k
I have a mortgage for over 3 years
My credit score is in the range of 680'-690s due to an old debt I had nearly 7 years old that will be soon removed from my records
Some credit card debt but is all paid on time.
How can I make certain I get approved for a $50-60k car loan?
Hi and welcome!
You have an optimum mix of credit (revolving, installment and mortgage reporting).
You have great income.
You should have higher scores than you state in your post based on what I see,
Have you pulled your Fico Scores recently from here? You will also be provided Auto (enhanced) Scores.
How is your utility on your revolving credit currently?
What is the old debt you are referring to and what is the status?
@Anonymous wrote:
old debt is a credit card I paid off less than what I actually owed.
I believe the biggest factor on my 680-690 credit score is the usage of my credit cards. I do use 70-80% of the available credit but pay them off or more than minimum all the time.
Would that be a hindrance to me being approved for the car Loan?
No it wouldn't keep you from being approved but it will be a factor in determining your monthly debt which could affect the amount of the approval and your APR.
Paying in full on your revolving debt monthly does help with your payment history with that particular lender however when you allow the balance to report by not paying in full before the statement date (not the due date, the actual statement) that account won't report a zero balance and your utilization won't be reported as 0% utilization and 100% available for that account. This won't reduce your overall revolving utilization for all revolving accounts and keep your score down.
One of the most common mistakes people who pay in full monthly make is letting the balance report BEFORE they pay in full. The best way to immediately affect your score in your situation is not to change what you pay but change when you pay.... since you already pay in full or more than the minimum.
Having a credit card with a $1,000 limit and a $700 balance is seen no differently than a credit card with a $10,000 limit and a $7,000 balance. Both cards are at 70% REPORTED utilization. Make sense?
Most underwriters can see beyond this to approve you for an auto loan however having a higher score improves your chances at a lower APR and lower monthly payment.
You won't get denied but you will need to rate shop carefully.