Posts: 97
Registered: ‎06-04-2012

Newbie to auto loans

I am planning on buying a new(er) car sometime in the next year and I have no idea what the best way is to obtaining an auto loan. I just had a few questions. I've been reading about the Auto Enchanced FICO scores... How does that apply to someone who has not had any previous auto loans? I had a little hiccup with two credit cards 1.5 years ago, will that affect me as much as if I were applying for a credit card? I had one 90-day late on one card and a hand full for 30- and 60-day lates on both between Feb and Sept 2011, all of which are paid off and closed. I have 3 cards and  never late. Will I need a co-signer?


Looking at a 20109- 2012 Chevy Tahoe at about 30k with 7-10k down. Income is $30k.

Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009

Re: Newbie to auto loans

With a down payment in the 25% range you should not require a co-signer. Your scores if they are current are not bad considering the credit hiccup's you have had. As to auto enhanced scores if you do not have an auto loan on your credit report then your auto enhanced score is likely going to be a few points lower than the score you are seeing from here. But not every bank uses auto enhanced scores.


Your best bet is to go to the institution (bank or CU) where you do your primary banking and see if you can get an auto loan preapproval through them. Then go to the dealership and see if their finance department can beat that rate. You will be able to finance but as a first time buyer I wouldn't hazard a guess at what rate. If you are buying brand new you may squeak in to some of the manufacturers subsidized interest rate promotions.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL

Take the FICO Fitness Challenge

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011

Re: Newbie to auto loans

I think your best bet would be to go to the dealer and let them do the loan.


That is a very very big loan for your income. But I think you will be able to get it with that down. One thing to keep in mind, the most you can finance with a 30k income is 22500. So you will need to use all of the 10k.

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 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.

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

IMPORTANT INFORMATION: All FICO® Score products made available on 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.