11-27-2012 12:50 PM
I wanted to get some opinions based on previous experiences / expertise in this forum
23 year old male
120k a year with proof of iincome
At current job for 2years
2200 in monthly expenses including car payment, rent, utilities, etc.
1 secured credit card with 600 limit with capital one
1 unsecured with my credit union for 375
authorized user on cap one card with 500 limit
auto loan through cap one aukiwi with 9 months good payment history
monthly rent of 1400 reports to experian only for last two years no late payments.
Current experian fico = 652 and increasing monthly
credit score was lower before due to carrying higher balances, since educating myself on improving credit half a year ago I pay my balances I in full on bill date and do not use them until the 0 balance is reported to the bureaus.
In April 2013 I will have had 12 on time car payments
what I am looking to purchase in April 2012:
used 1-2 year old mercedes e class very low mileage @ 53,000
I will be 4-8k upside down, however, I will pay the trade difference.
I am willing to put down 4-8k in cash
I do have a bank account and unsecured credit card with my credit union.
in your educated opinion do you think I will be approved?
capital one claims they do not do auto loans for used vehicles over 30k but they do through the dealer occasionally .
thank you for your input
11-27-2012 01:06 PM - edited 11-27-2012 01:07 PM
Hi! Welcome to MyFico Forums!
My best advice would be to apply for the car loan through the credit union or through the dealership. At this point, your auto enhanced FICO should be fairly high, so you may have better luck at the dealership.
do you have any negative remarks on your credit report?
11-27-2012 01:38 PM
I have one late payment on my 1 year old capital one 600 limit. I have attempted multiple times to have it removed via certified letters. All previous collections have been paid off and completely removed.
11-27-2012 01:40 PM - edited 11-27-2012 01:41 PM
With another 6 months of good payment history, and since you will be taking care of any negative equity. You may have a good chance of approval. But as webhopper mentioned, I also suggest trying via your Credit Union first.
11-27-2012 01:56 PM
thank you for your input, I would not mind a few more opinions.
minor correction to my post - my ipad auto- correct feature changed capital one auto (whom I currently have my car financed with) to some strange word.
12-03-2012 08:42 AM
I think the $53,000 purchase may be a stretch for your credit profile. With such small limits you can't really show the ability to handle such a large amount. What was the purchase price on your current car?
I would be expect/be prepared to put down a pretty large down payment ($10k or so PLUS your negative equity in your trade)
12-03-2012 09:45 AM
Thank you for the response,
the purchase price on my current vehicle which is financed through cap one was $25k.
I had a 30 day late on my credit file on my cap one credit card that was a negative but cap one agreed to remove and should be taken off within 30 days.
Therefore the only bad thing working against me are my credit limits and my length of credit history.
Hopefully by April, 2013 when I have made a full year of consecutive on-time payments it will help my auto-enhanced score.
Do you think my income will be taken into consideration with what I am trying to achieve?
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