Think we will get a loan?

[nate79416]

I'm new to this board, and have a question. I have a credit score that is 596, I have a 2002 honda that I am paying on, and I owe $4500. We need a suv, we have 4kids now, so need a bigger vehicle, I don't want to use my car as a trade in, We have saved up 3k for a downpayment, my question is do you all think we will get a loan?? We are looking at a 2006 Ford Expedition asking price 17k, I have seen some lower, is 3k a good amount for downpayment? I have a steady job, I make about 50k a yr.

Thanks for all your advise/help

[leah5570]

My score was 565 (took a huge drop for some reason that week) two weeks ago when I applied for an auto loan. On my Experian Auto Enhanced score it was 610. Your auto enhanced score may lift your score up for the purpose of an auto loan if you have good auto payment history. My husband cosigned, but his auto history was poor from 2004. His regular Equifax score is 677. I didn't see his auto enhanced. Our interest rate is 11.5%, 2007 Trailblazer for 17K. If you had someone to cosign with that has decent credit in general, it may be the same scenario for you. Since you already have an auto loan that's helpful, but be sure to evaluate your DTI ratio, as well.

[nate79416]

Thanks for your reply, another question

Should we tell them we have a downpayment of 3k down, or just wait and see what they say first, thinking of going though CarMax!

[nate79416]

hmm I'm thinking since we don't owe that much on our honda, maybe we should buy a car cash, and when the honda is paid off, then go and get a SUV.

My Question is will my credit score go up once my auto loan is paid off???

Thanks

[MarineVietVet]

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@nate79416 wrote:

hmm I'm thinking since we don't owe that much on our honda, maybe we should buy a car cash, and when the honda is paid off, then go and get a SUV.

My Question is will my credit score go up once my auto loan is paid off???

Thanks

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If this is your only installment loan and you have credit cards your score might actually drop a little when this is paid off because FICO likes to see a mix of credit. But that mix is only 10% of your total score so the ding would be minor in my opinion.

But don't let a few FICO points keep you from paying off debt.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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