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Established Member
hussain99
Posts: 32
Registered: ‎11-20-2012

Urgent advice needed!

[ Edited ]

I'm getting a car on finance.

 

Here's how my profile look like:

 

Income $85,000

FICO EQ: 640

Inquiries: 6

Length of credit history: 10 months

 

Just a few days ago my FICO was 694 but I got short of cash somehow and left a balance of $900 on one of the cards. As a result of that, my score just dropped to 640 today.

 

Now when the dealer would run my credit today, I won't be able to get a good interest rate. However, if I could somehow get a month, I can clear all my balances & bring my score up again to high 600's. I'm not sure if the dealer would be able to hold the car for so long since its a special pricing going on these days on this car.

 

What do people normally do in these situations?

Valued Member
blackie1
Posts: 36
Registered: ‎06-26-2012

Re: Urgent advice needed!

Well, usually they wait, which is what you are going to have to do!!


hussain99 wrote:

I'm getting a car on finance.

 

Here's how my profile look like:

 

Income $85,000

FICO EQ: 640

Inquiries: 6

Length of credit history: 10 months

 

Just a few days ago my FICO was 694 but I got short of cash somehow and left a balance of $900 on one of the cards. As a result of that, my score just dropped to 640 today.

 

Now when the dealer would run my credit today, I won't be able to get a good interest rate. However, if I could somehow get a month, I can clear all my balances & bring my score up again to high 600's. I'm not sure if the dealer would be able to hold the car for so long since its a special pricing going on these days on this car.

 

What do people normally do in these situations?


 

2fst4u
Valued Contributor
tooleman694
Posts: 2,257
Registered: ‎08-25-2011

Re: Urgent advice needed!

Buy the car, then refi in a couple months.

Valued Contributor
maiden_girl
Posts: 1,773
Registered: ‎12-29-2011

Re: Urgent advice needed!

I'd wait. There will be others. With your short credit history...your FICO wouldn't matter anyway to the lender. Your Apr will still be high.
The truth is out there...
FICO scores: 724 (EQ) 709 (EX) 711 (TU) 4/14 | Goal score: 750+ (all 3)
Tradelines: Capital One (5.0k) | Discover IT (5.0k) | Walmart Discover (3.0k) | Chase Freedom NPSL | Citi Simplicity (8.0k)
--------------------------Gardening until my credit recovers...NO MORE INQUIRES TIL 2015
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Urgent advice needed!

Some card companies might be able to report your balances mid cycle based on an escalation request.  Might want to look into that.  There will always be incentives for auto sales, but not waiting at most 30 days for possibly savings hundreds a year seems kind of crazy.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Moderator
Revelate
Posts: 6,798
Registered: ‎12-30-2011

Re: Urgent advice needed!


Jutz wrote:

Some card companies might be able to report your balances mid cycle based on an escalation request.  Might want to look into that.  There will always be incentives for auto sales, but not waiting at most 30 days for possibly savings hundreds a year seems kind of crazy.


Depends on the dealer I think; buying in December in "last year's" model is often a non-trivial savings right off the top, I don't know if those deals are still there mid-January in all cases... though in general I would agree with you if you can afford to wait for a month, do so.

 

Also it very much depends on the borrower's profile, 640 Auto Enhanced from several well known lenders is nowhere close to 20%; 640 Classic first time buyer, maybe as an example... but lenders are really favorable right now, and that includes the big dealer lenders too.  If it were me and I was buying from a brand-name dealership, and I was planning on dealer financing anyway, I'd at least consider buying in December regardless of the 50 point swing... which theoretically won't be 50 points (probably smaller) difference on Auto Enhanced anyway given the relative weights.

 


Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 672, Wally TU 686, EX 702 (04/14)
Goal Score: 700 in all three (01/01/15)


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Established Member
hussain99
Posts: 32
Registered: ‎11-20-2012

Re: Urgent advice needed!

Ended up financing the car on 14% APR :smileysad:

I told their CSR its very high but he said I'm financing for the first time so I'll be getting a high APR almost everywhere. He also suggested me to refinance after sometime.

Is refinancing easy? What should be my best strategy? Should I get it from the Bank I mostly deal with, CUs?
Valued Contributor
maiden_girl
Posts: 1,773
Registered: ‎12-29-2011

Re: Urgent advice needed!


hussain99 wrote:
Ended up financing the car on 14% APR :smileysad:

I told their CSR its very high but he said I'm financing for the first time so I'll be getting a high APR almost everywhere. He also suggested me to refinance after sometime.

Is refinancing easy? What should be my best strategy? Should I get it from the Bank I mostly deal with, CUs?

The dealer could have done better. I financed for the first time like a week ago and my rate was no where near that high. You need to definitely refinance that in maybe a few months.

The truth is out there...
FICO scores: 724 (EQ) 709 (EX) 711 (TU) 4/14 | Goal score: 750+ (all 3)
Tradelines: Capital One (5.0k) | Discover IT (5.0k) | Walmart Discover (3.0k) | Chase Freedom NPSL | Citi Simplicity (8.0k)
--------------------------Gardening until my credit recovers...NO MORE INQUIRES TIL 2015
Moderator
Revelate
Posts: 6,798
Registered: ‎12-30-2011

Re: Urgent advice needed!

[ Edited ]

Your scores are substantially higher maiden_girl; that's a non-trivial difference in rate which can be obtained from anywhere.

 

Hussain: yes refinancing is very easy, and I do recommend CU's for it.  


Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 672, Wally TU 686, EX 702 (04/14)
Goal Score: 700 in all three (01/01/15)


Take the myFICO Fitness Challenge
Valued Contributor
maiden_girl
Posts: 1,773
Registered: ‎12-29-2011

Re: Urgent advice needed!


Revelate wrote:

Your scores are substantially higher maiden_girl; that's a non-trivial difference in rate which can be obtained from anywhere.

 

Hussain: yes refinancing is very easy, and I do recommend CU's for it.  


Alot of dealers have first time buyer programs, college graduate, and military discounts. I assumed the OP would qualify for at least one of the discounts. The dealers can always do better. They actually can call the bank up and negotiate with them on rate and payment. I always feel like the dealer could do more if they truly want to earn your business.

The truth is out there...
FICO scores: 724 (EQ) 709 (EX) 711 (TU) 4/14 | Goal score: 750+ (all 3)
Tradelines: Capital One (5.0k) | Discover IT (5.0k) | Walmart Discover (3.0k) | Chase Freedom NPSL | Citi Simplicity (8.0k)
--------------------------Gardening until my credit recovers...NO MORE INQUIRES TIL 2015

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