need auto loan advice!

[DevotionToU]

My pre approval process with DCU went like this:  Log in to the loan site (non-member version).  It stated conditional pre approval pending the purchase order from the dealership.  At this point, I went in and agreed to purchase the vehicle, and had them fax the purchase order to DCU referencing the loan number.  After this was completed, I called the DCU Consumer Loans department and had them issue the check, which they will overnight to you for ~$15-20, took the check in to the dealership and was finished.

I would recommend calling if you get approved for the loan, as their customer service was extremely helpful for me.  The person I spoke with answered all the questions about how to proceeed, what steps to take, and even changed the rate to the member rate since I was a member but was unable to open the loan platform on the account website.  They gave me the loan department number (which I believe closes @ 6pm each day so make sure you call before then), as well as the fax number for the dealer to use.  

Hope everything works out for the best!

[jj88]

Yes the car is sick! haha. I actually got an update from the dealer and it will be here next Wednesday! My fico score actually went up today and it also listed the loan inquieries.. yet no collections notice so that's good! I also applied to Chase and am currently awaiting a decision. Depending on the rate I get from chase, I think I will either go with them or BoA. I do not want to make a checking account with DCU since I already have one with BoA and a VISA credit card from Chase.

[nlyngso]

Send a Cease and Desist notice to the collection agency. They should then send the account back to the creditor. - If on your credit report, you dispute the accuracy of the entry. The collection agency cannot verify because they have closed the account.

[mmjs]

In regards to a collection.   I would not worry about this.  After spending 2000 hours researching about credit, I could write my own e book.  Do not worry about collections.  I do not care what financial advisors tell you.  Paying a collection in full or not will not gain you any points.  The only thing that matters across the board with all the bureaus are your revolving account balances...Do not worry about inquiries, I have 35 with transunion and just got approved for five more cards.  It is all about your utilization.  I purposely did 100 inquiries for equifax and their system cannot fault me for it.  It is about a formula which I now know.  I have 20 positive accounts and a 540 credit score.  Worry instead about payment history and utilization.  Do not pay charge offs and collections.  Let them drop off.  As far as an auto loan there is Lexis Nexis, go to Auto Max, they will give you a fair dail.  Join a credit union.  Of all, this is my best advice.  Also, Credit One, out of all the credit cards they are the best, the nicest, and the fairest.  A year ago, I was denied a credit loan, got a few secured credit cards, then they turned un secured, Comneity Bank is very nice, stear clear of gemcrb.  I can absolutely tell you do not worry about your credit score, worry instead about your financial status within each individual bank.  I had a stellar credit history before my son had a castrophic illness.  Then, it all went down from their, but see you can get credit.  Build it from each individual bank.  As far as people who say, oh American Express is the best.  Baloney, get a rewards card, and American Express is not a revolving credit card. 

[mmjs]

And, also about a Cease Letter.  Do not do this.  Also, do not electronically dispute.  All this does is take a collection off and the 30 days later put it back on and to the fico system makes this a whole new collection.  Therefore, a new drop of your score.  Let it age gracefully.  If you have money, and a low score do secured cards as much as you can you will gain 35 to 40 points throughout the bureus.  Do not worry about inquiries.  If you get a denial, call the bank, they are regular people, like you and I.  Let the banks do your increases.   Do not be so afraid of banks.  Their are regular people there like you and I.  Trust me, I know what I AM saying.  I have 20 positive accounts and a great payment history.  And 15 months ago, no one would give me credit accept Fingerhut.  I will always be loyal to Fingerhut

[froggySD]

I'm really surprised that with all these replies, no one has brought up the silver bullet.

Collections for amounts under $100 (as this one was described) do not affect your credit score in any way, and haven't since the major revisions a few years back. Those changes were made to avoid things like overdue library fines being used as a predictor of default (when they are usually clerical errors).

So if your collection is truly for the $40 you said it was, you have no concerns whatsoever.