11-29-2012 08:42 AM - edited 11-29-2012 08:46 AM
So yesterday I applied with Road Loans for a auto loan and I was approved for 21k.
My net income is 5700 month. My fico is about 635 and I have paid my Lexus lease on time for the last 2 yrs. I have a discharged bk from 2009.
Every credit card I have had open since 2009 I have paid on time. I have about 30 inq and my utilization is at 85 %
Why is it that I was only approved for 21k. I can proove that I receive 5700 in income a month
It is that my utilization and subsequent low score are the reason for the low approval limit?
Was that a system error?
11-29-2012 08:45 AM
No, you have 30 inquiries and your utilization is at 80+ percent. You need to pay down debt and let those inquires fall off..
11-29-2012 08:47 AM
If I pay off ALL my debt including the Lexus lease early and have 20 % down will my chances dramtically increase?
The inq will not fall off by next May when I have to get another car as my lease it up on my current car
11-29-2012 10:37 AM
Why do you have 30 inqs?
Are those from Auto Loans inquiries or CC inquiries or what?
And 20% DP trumps all.
Follow my financial journey: http://www.frugalrican.com
11-29-2012 10:38 AM
Paying your reported debt down to the 1 - 9% range will definitely get you a score boost. Paying the lease down or off will make your debt to income ratio look better, and six months of positive credit will certainly help and not hurt. Given those factors and having 20% down you should have no problem securing very favorable terms for an auto purchase in May.
11-29-2012 12:38 PM
utilization is at 85 % you need to bring them down to see your score increase and get better rate and better Loan amount.
pay down to 30 % is good. when your used 85% of your total credit limit that is make you become high risk to lender.
base on your income alone 5k7 for month
How much you total credit limit?
how much did you used?
do you have another open auto loan?
do you have open mortgage?
any another bill?
11-29-2012 10:20 PM
My plan is to pay off all of my revolving debt and wait a few months and try again. I hope that my score goes up a good amount if I pay everything off and leave a small balance on one card
11-29-2012 10:27 PM
I guess my question is what are you trying to buy and why did you go to Roadloans to get this new loan?
I don't care about the INQ and for car shopping, banks don't either!
now 85% that is an issue
Why not go back to Lexus?
11-30-2012 12:12 AM
I would def wait to you get util in check then seek an auto loan again. most likely that 21k loan came with a high apr. If i had to take a gues and you got util to report less than 10% a jump close to 700 may be in order
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† 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.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com 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.