shopping for a used car - need help with my credit file

[egypt04]

Hi everyone,

I'm not sure where to post this but since I am currently in the market for a "new to me" car I thought I'd try this board first : )

I've had my current vehicle for over 11 years now and I'm looking to trade up while this one is still working. I am looking at a used Hyundai elantra gt or accent hatchback. I am hoping to get $1500 for my current car (02 malibu) and saving $1500-2000 extra to put down as well.

I have never had a car in my name (my mom had to help with this last one). 

Currently my scores are hovering around the 600 range, due to student loan woes. I am currently rehabbing them, 5 will be posting positively by this October and a different one will be good by January. 

I do have 5 current student loans reporting positively. However, there are 2 accounts that have been closed by the creditor (Bank of America) and 5 accounts showing negatively from Wells Fargo (they're offering me settlement terms but I still can't afford to deal with them yet)

: (

I have only 1 credit card (Cap1) but it is almost maxed out. I'm trying to get that paid down but it's a slow process.

I am wondering what I can do from now until early next year to increase my chances of getting an auto loan?

Should I try to get another credit card and do a balance transfer to help out with my utilization amount??

I joined a credit union a few months ago and started a separate car savings acct there as well. I am looking to find a vehicle no more than $12k, which with my large down payment (including trade-in) would be around $3000/$3500. 

I'd be needing to finance somewhere around 9k. I'm looking at a 60 month term. No clue what interest rate I'd get approved for but if I do and it's high I know I can refinance thanks to this board.

Please let me know what you guys would do if you were in my situation.

I'm hoping in just 4-6 weeks my scores will go up another 30-40 points from the student loan rehab finishing up.

Also, I have had a FT job since Feb where I make approx 30k/year.

[Appleman]

Welcome to myFICO boards! 

Your profile is likely to put you into sub-prime lending I imagine.

Anything you can do to improve your credit score will help. Check out the rebuilding section here for any advice on how to handle some of the current accounts.

You can always try the Capitalone Auto Navigator (the one that is only a soft credit pull) and see if there is a chance of being financed.

I even hate to recommend it, but it may be time for a new start..... Let's see if others chime in.

[Anonymous]

Hey egypt, im sorry to hear the troubles, and it does look pretty grim atm. You have several different aspects that need to be addressed. For one if you have any accounts your not paying on you should not even attempt to apply for an auto loan until you are paying all acounts consistently ontime. If you can save that much money for a down payment you really should be paying your current loans aswell because even if a creditor approves you scorewise, you will be declined for delinquent payments. Other than your student loan issues the fastest way you will raise your credit is by bringing your utilization down to between 1-10%. Utilization does not hold a history though in your credit, in other words you should pay down your debt but its not until your actually going to apply that utilization matters. You will need to find out what day your bank posts to the credit bureaus and then right before that date you would pay down to the 1-10% and it will post that as your utilization. That counts for 30% of your score.

[egypt04]

What can I do NOW to help out my situation? Obviously paying down the Cap1 card is essential, do I try to sign up for another CC through them or someone else and do a transfer or is that not a good idea? Would having another positive acct in my file be the next step or not? Also, could I try to decrease my interest rate or would they look at my score and say no? 

Not that it matters but the 5 WF accts that are bad are private school loans. My mom was paying monthly on all of them but she'd only send in one check for all the accts to be split from and WF rarely did that. Some months they would put all the check towards only 1 or 2 accts. I asked for the loans to be put back with the ones that are still in good standing and they refused, saying those bad accts were now with another section of their company.

I've been advised not to do anything with those accts yet until I have enough money to settle them - does that seem correct?

Also, what type of down payment would be most favorable to say I have for a down payment in order to have a better chance of getting a loan through my CU? 30? 40?

I've been thinking of meeting with someone at my CU to discuss my situation & get some advice - would that be a good idea?

Thanks for all the support so far guys!