05-04-2013 03:44 PM
Thanks for all the information I have found here. Very interesting reading and enlightening.
I would like some opinions regarding my situation seeking a first-time car loan. My credit history averages 1.8 months. In 1992, I went to live in Europe and returned in 2001 to find I had a couple of errors in my credit profile. So I mistakenly had the three CRAs wipe my report clean by asking for the removal of everything over 7 years. I had blank reports. I had a car financed in the early 80s through Chrysler, but in 2013 there is no available record of that finance. Living in NYC, I went without a car. Now, I’m in LA. I earn $80,000. My scores are TU 620, EQ 612 and EX 686 as shown in my purchase of service from each of the CRAs. I have no late payments. My credit card appearing on credit profile and limits are Capital One (formerly Orchard) $2,000, Bank of America $5000, Macy’s $800, HSBC credit line $600 -- nothing else on credit profile. My utilization on cards is about 50%. Just joined my local credit union in Burbank, CA.
I want to buy a new basic car, Honda Accord at $25,000, as a first-time buyer. Any ideas on possible approval or thoughts in general?
05-05-2013 07:59 AM
With your income, you will get approved. With your scores, you will have a fairly high rate, which you can refi in a year. Getting your untilization down to 10% or so would help your scores quite a bit...just dropped mine from 55% to 15%, and shot up 37 points in a few weeks. If your CU says no, go to a dealer and let them find a bank for you.
05-05-2013 09:59 AM
Sure there isn't anything negative on your reports? Those scores seem really low even with 50% utilization. You'll certainly get approved but if you can get those scores up the rate will be dramatically lower.
05-05-2013 11:42 AM - edited 05-05-2013 11:42 AM
boomhower, thanks for the reply. There is nothing else in my credit profile. A knowledgeable suggested that is actually the problem -- a short credit history and few accounts. Will try to get utilization down. Just signed up for myFICO. Score is 608!!! citing the similar reasons.
Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.
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.