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*UPDATE* Need Auto Loan Real Soon - How Risky Do I Look?

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Anonymous
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*UPDATE* Need Auto Loan Real Soon - How Risky Do I Look?

Hi Everyone,

 

(FYI - For some reason - i couldnt log into my other username anymore or use the forgot password.. so i had to create a new one.)

 

I am 29 years old and have no monthly rent. I need to purchase a new car really soon .. like in 2 weeks about.. right now i make 41,000 a year.. i have been employed at my job for 10 years roughly. I have no late payments on any credit cards or my prior auto loan that i had)

 

My current credit score is a 692 from experian. This reflects $19,172 in "revolving" debt (credit cards) (70% utilization used) ... and $10,288 in student loans (defered).

 

I just made a LOT of payments and now my "revolving debt/credit cards" - is down to $12,579 (now at 45.83 utilization used)  in addition to the $10,288 in defered student loans.

 

Over the next 2 weeks.. i can get the $12,579 in credit debt down to $10,629 .. out of a max $27,450 credit limit. This would reflect 38.72% utilization used and my card balances would look like this below.

 

Card 1 - 4,226 / 6000   (70.44% utilization)

Card 2 - 0 / 5800

Card 3 - 0 / 4200

Card 4 - 3,429 / 3500 (97.99% utilization) (reports way later next month- wish it reported earlier Smiley Sad )

Card 5 -  2,973 / 3000 (99.11% utilization)  (reports way later next month- wish it reported earlier Smiley Sad )

Card 6 - 0 / 2000

Card 7 - 0 / 1250

Card 8 - 0 / 1000

Card 9 - 0 / 700

 

Current Experian Score - 692 

Current Equifax Score - 701

Current TransUnion Score - 696

 

** I also have 8 "credit inquiries" on my experian report, but only 3 on my equifax and 4 on my transunion report.

 

How risky do i look? I am hoping my scores jump a lot now that i made a lot of payments! I need a car loan bad as my car died unexpectedly and at a bad time Smiley Sad Also - i do see people getting car loans on this board that have lower scores than me.. but their utilization isnt as bad. What do you think outweighs 1 more than the other in regard to - credit score versus credit utilizaiton?

 

Im just afraid of getting rejected.. i will be in such a bad position Smiley Sad

Message 1 of 23
22 REPLIES 22
SamsungHDTV
Established Contributor

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Here's the thing. Even if you make big payments on your cards, they dont reflect immediately on your credit report. So when you go to apply in two weeks, even if you've made your payments, your reports still might show 70% utilization.

 

Your scores are fine. Yes your utilization is high, but given all else you look good. I think you'll get approved, on the basis that you have everything else clean. Having no rent helps your DTI. However, there's only one way to find out.

 

Go apply at your local credit unions.

Message 2 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Thank you for your reply Smiley Happy

 

In regard to when my payments update on my reports - the cards i went to make those big payments on have billing due dates on the 2nd and 5th of next month. Thus, they will report the newly updated balances to the credit bureau's only a few days later Smiley Happy I just hope it makes enough of a difference to get a loan Smiley Sad

 

edit: i updated the above numbers a little because i will be able to come up with another $592 in order to pay off more debt ... im trying i really am ... Smiley Sad

Message 3 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

I am in the same boat, I paid down all my debts. Then realized I didn't have any money to put down. Kinda depressing.

i am sure you will be credit worthy. Your score does qualify. Dcu gives their top credit tier loans on 675 equifax score which you  would qualify for.

good luck dude

 

Message 4 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Dont pay down credit cards anymore? go find out what its like having a 701 eq score and 70% utilization first? You will be pleasantly surprised, what you can get without having to pay down.

 

Save it all for a down payment? I'd call you crazy if you had zero down payment, no money for your TTL and got a 2,9% APR for 60 or 72 mos.

lol

Message 5 of 23
TRC_WA
Senior Contributor

Re: Need Auto Loan Real Soon - How Risky Do I Look?


@Anonymous wrote:

 

You will be pleasantly surprised, what you can get without having to pay down.

Save it all for a down payment? I'd call you crazy if you had zero down payment, no money for your TTL and got a 2,9% APR for 60 or 72 mos.

lol


 

@I got a $40k Challenger @ 4.49% for 72 months with $0 down thru a local CU.  I didn't want to put $5k down to save $60 a month on my payment.  My EQ was 691... auto 707.

 

Will refi at my CU's best rate (around 1.9% with 700+ TU) in October when everything BK13 falls off my TU report with early exclusion.  They originally declined the loan due to the amount... the max they'd do was $30k so I had to go with a different CU for the loan.  I shouldn't have an issue getting the refi this fall after I've made 9 payments and my TU which is currently my lowest score is over 700.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 6 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Thanks MrDeezy!

 

Yeah its kind of a catch 22.... either pay off a lot of debt to look more "credit worthy" to lenders... or save it for a big downpayment... but i figure its better to pay off debt instead of saving it all for a down payment so that i will look less risky to lenders, so i will have a better chance at an approval... because should i get a denial - i am going to be in a horribleee position :/

 

What i am very curious to see is the fact that right now my utilization rate on my credit reports is around 70%.  With these new payments i made - i am not at around 39% so once my credit reports update - i am sooo curious to see how much of a bump in my credit scores i will get .. i hope at least 10 points .. right now im at a 692 on experian :/

Message 7 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Utlization is huge. If you get a chance play with your FICO similulator... I got 40-45 points paying down debt across all three cra. I was aroun 30% util. I also fought for CLI and got a couple new high cl cards. So my scores are maxed out until my new cards can mature. 

 

But, homeboy right above was right. If you get a loan @ 2.9% or so. There is almost no point in putting money down. Save it for a rainy day. I plan on putting it into the back end of the loan and paying it off. I would only put down money if my credit score was still bad, and it was necessary to get the loan. In the spot you are in the value of the money in the bank is more than it is being in the car loan.

 

Just by looking at your scores now. If you can get down to around 30% util. You should be 740-750 easily. I am suprised your scores are that high with that much debt. 

Thats something to be excited about!

 

Just make sure you can continue paying your debts down. AND pay your car loan AND pay for full coverage insurance. 

 

Your on the right track though!

Message 8 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Unfortunatly, i will most likely be able to get it down to around 38% utilization in the next 10 days by the time my cards start to report Smiley Sad

What has helped my score a lot though is the fact that i have been paying all my bills on time, every month.

I just wonder if a dealership/lender would overlook the 38% utilization for a score that should be over 700 by the time my recent payments appear on my reports :/

Message 9 of 23
Anonymous
Not applicable

Re: Need Auto Loan Real Soon - How Risky Do I Look?

Update #1 -

 

So, some of my payments posted to my credit report. In regard to Experian - it last reflected a 70% credit card utilization rate and it provided a score of 692.

 

My credit utilization on my credit report now reflects about 51% ... and my score is now........ 703!

 

I have 2 more credit cards that will be reporting within the next 5 days or so which will bring my Utilization down another 10% or so. I am hoping my 703 score goes to 710+

 

I just hope dealerships overlook my high utilization rate for a somewhat "good" FICO score :/

Message 10 of 23
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