I've been getting my ducks in a row in the last couple of weeks, in hopes of buying a car at the end of the month. My scores aren't great, but they're not bad-- I have a couple of negs that probably won't be fixed in time, so I've been a little bit nervous about it, but I am able to make a big down payment, which I'm hoping will help.
Last night, out of the blue, I got an email that Discover had given me an unsolicited CLI-- from $5500 to $6800! (They had just reported over the weekend, so I chatted w a rep as soon as I got the email, and asked if they would report it again-- she said she submitted it, and it should show up in 2-3 days.)
I don't want to get my hopes up, but is this a good sign that maybe I look better to creditors that I realize? Or are CCCs and auto lenders like apples and oranges? I'm just now learning about how credit actually works, and am too new to the rebuilding process to know, so I figure y'all are the ones to ask! 
Any thoughts?
**Update, 10/18/2014** BOA approved me this morning at 2.24%! I am so tickled. Thanks for everyone's insight and feedback!
@NewGirlNewLife wrote:
I've been getting my ducks in a row in the last couple of weeks, in hopes of buying a car at the end of the month. My scores aren't great, but they're not bad-- I have a couple of negs that probably won't be fixed in time, so I've been a little bit nervous about it, but I am able to make a big down payment, which I'm hoping will help.
Last night, out of the blue, I got an email that Discover had given me an unsolicited CLI-- from $5500 to $6800! (They had just reported over the weekend, so I chatted w a rep as soon as I got the email, and asked if they would report it again-- she said she submitted it, and it should show up in 2-3 days.)
I don't want to get my hopes up, but is this a good sign that maybe I look better to creditors that I realize? Or are CCCs and auto lenders like apples and oranges? I'm just now learning about how credit actually works, and am too new to the rebuilding process to know, so I figure y'all are the ones to ask!
Any thoughts?
Don't take my word for it until someone way more experienced chimes in, However in my opinion the only way a big down payment would be helpful is if you're buying a car for $25,000 but due to the negative factors in your history you only get approved for $18,000 loan so the $7,000 helps cover the rest of the car which means you can purchase your vehicle.
About the CC and the limit, The only way it'll help is by boosting your credit a little (Later on, not now) by decreasing your UTL. It is a good thing though, I don't want to put you down or anything. Just give it some time...
@RushXTC wrote:Don't take my word for it until someone way more experienced chimes in, However in my opinion the only way a big down payment would be helpful is if you're buying a car for $25,000 but due to the negative factors in your history you only get approved for $18,000 loan so the $7,000 helps cover the rest of the car which means you can purchase your vehicle.
About the CC and the limit, The only way it'll help is by boosting your credit a little (Later on, not now) by decreasing your UTL. It is a good thing though, I don't want to put you down or anything. Just give it some time...
Thanks for your reply, Rush.
That is exactly the situation. The car I want will be around $25,000 OTD. (2014 Hyundai Sonata Limited)
And I agree about the CC not really being able to help right now. My UTL was about 8% before they raised my limit, so I'm in pretty good shape there, fortunately. I'm really just hoping the CLI may be an indicator that creditors might see my credit history more favorably than I do.
Credit cards and auto loans are apples to oranges in that with the auto loan the creditor has a secured asset in the deal. Granted especially with a new car it won't fully secure the deal with depreciation but they know they won't take a total loss. If your scores in your signature are FICO scores then I would tend to think that you are in reasonable shape. The defining factor is going to be whether you have any auto loan history or installment history in your credit reports and is it positive or negative. And also what type of income you have to support the loan.
Since you know what type of vehicle you want I would suggest an application to your primary bank / credit union for an auto loan and see what they say. Don't spend a lot of time and inquiries looking on your own. Assuming you get an approval from them then go to the dealership and see if they can beat your offered rate. If you do not have any auto loan history then a down payment may be necessary to secure the deal. You would be surprised how 20% down can influence the banks to accept a deal they might not otherwise.
Especially on a new vehicle purchase a down payment is never a bad idea to avoid or lessen the drive off depreciation so that you are not "upside down" in the loan amount due to the vehicle value. Best of luck but I believe you can approach the dealer with confidence.
Starting Score: 500's
Welcome and congrats on the new start!
One of the goals I set a few months back was getting my wife a new van and part of making that goal was to bring up my scores and repair credit to try and get the best rate possible. It seems like most dealerships require right around a 680 to get into their top tier of financing which you should be ok getting into depending on what else is on your credit reports. I joined a credit union in hopes of getting a good offer from them while shopping just like stated in the thread already. I figured I'll see what they can offer me then see if the dealership can beat it.
There is also auto enhanced FICO scores (which you can't purchase) and since it seems your auto history has been positive these might help boost your scores as well.
Be sure to browse through the auto loan approval thread and find posts with people who have similar credit scores to see what they financed. Chances are you'll find a handful close to your situation who finance the same amount and it'll give you a really good idea of what to expect.
Starting Score: EQ 574 - 08.28.13
@James82 wrote:Welcome and congrats on the new start!
One of the goals I set a few months back was getting my wife a new van and part of making that goal was to bring up my scores and repair credit to try and get the best rate possible. It seems like most dealerships require right around a 680 to get into their top tier of financing which you should be ok getting into depending on what else is on your credit reports. I joined a credit union in hopes of getting a good offer from them while shopping just like stated in the thread already. I figured I'll see what they can offer me then see if the dealership can beat it.
There is also auto enhanced FICO scores (which you can't purchase) and since it seems your auto history has been positive these might help boost your scores as well.
Be sure to browse through the auto loan approval thread and find posts with people who have similar credit scores to see what they financed. Chances are you'll find a handful close to your situation who finance the same amount and it'll give you a really good idea of what to expect.
Hi, James, and thanks!
My current plan is exactly what you described. I'm going to try with my current bank (BOA) and credit union (PenFed), then maybe Capital One, and if the dealership wants to try to beat whatever I find, they can.
These forums have given me such a wealth of information-- I have scoured that approval thread (and many others!) a few times, taken notes, etc. I am already an Information Junkie about most things, but after finding MyFICO, I admit that I *may* be slightly obsessed with my new Operation Awesome Credit, beyond just getting a car. I'm grateful, because I used to think of it with such horrible dread, no matter where my score was. (I have some perfectionistic tendencies.) So many of the stories here make me feel empowered to achieve my Financial Identity-related goals. Such a great feeling!
yeh I started along the same lines as you. Wasn't looking forward to it but it came to a point that I knew it had to be done. Now it's like an addicting game to try and gather as many points as possible!
@NewGirlNewLife wrote:
@James82 wrote:Welcome and congrats on the new start!
One of the goals I set a few months back was getting my wife a new van and part of making that goal was to bring up my scores and repair credit to try and get the best rate possible. It seems like most dealerships require right around a 680 to get into their top tier of financing which you should be ok getting into depending on what else is on your credit reports. I joined a credit union in hopes of getting a good offer from them while shopping just like stated in the thread already. I figured I'll see what they can offer me then see if the dealership can beat it.
There is also auto enhanced FICO scores (which you can't purchase) and since it seems your auto history has been positive these might help boost your scores as well.
Be sure to browse through the auto loan approval thread and find posts with people who have similar credit scores to see what they financed. Chances are you'll find a handful close to your situation who finance the same amount and it'll give you a really good idea of what to expect.
Hi, James, and thanks!
My current plan is exactly what you described. I'm going to try with my current bank (BOA) and credit union (PenFed), then maybe Capital One, and if the dealership wants to try to beat whatever I find, they can.
These forums have given me such a wealth of information-- I have scoured that approval thread (and many others!) a few times, taken notes, etc. I am already an Information Junkie about most things, but after finding MyFICO, I admit that I *may* be slightly obsessed with my new Operation Awesome Credit, beyond just getting a car. I'm grateful, because I used to think of it with such horrible dread, no matter where my score was. (I have some perfectionistic tendencies.) So many of the stories here make me feel empowered to achieve my Financial Identity-related goals. Such a great feeling!
And so starts that slippery slope into full blown addiction! My name is HOH and I'm a FIco - holic.
@HoldingOntoHope wrote:
@NewGirlNewLife wrote:
@James82 wrote:Welcome and congrats on the new start!
One of the goals I set a few months back was getting my wife a new van and part of making that goal was to bring up my scores and repair credit to try and get the best rate possible. It seems like most dealerships require right around a 680 to get into their top tier of financing which you should be ok getting into depending on what else is on your credit reports. I joined a credit union in hopes of getting a good offer from them while shopping just like stated in the thread already. I figured I'll see what they can offer me then see if the dealership can beat it.
There is also auto enhanced FICO scores (which you can't purchase) and since it seems your auto history has been positive these might help boost your scores as well.
Be sure to browse through the auto loan approval thread and find posts with people who have similar credit scores to see what they financed. Chances are you'll find a handful close to your situation who finance the same amount and it'll give you a really good idea of what to expect.
Hi, James, and thanks!
My current plan is exactly what you described. I'm going to try with my current bank (BOA) and credit union (PenFed), then maybe Capital One, and if the dealership wants to try to beat whatever I find, they can.
These forums have given me such a wealth of information-- I have scoured that approval thread (and many others!) a few times, taken notes, etc. I am already an Information Junkie about most things, but after finding MyFICO, I admit that I *may* be slightly obsessed with my new Operation Awesome Credit, beyond just getting a car. I'm grateful, because I used to think of it with such horrible dread, no matter where my score was. (I have some perfectionistic tendencies.) So many of the stories here make me feel empowered to achieve my Financial Identity-related goals. Such a great feeling!
And so starts that slippery slope into full blown addiction! My name is HOH and I'm a FIco - holic.
Room: "Hi, HOH."