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New Member
micha3l
Posts: 13
Registered: ‎10-08-2008
0

Will I see an increase?

Hello,

My question is probably really simple, but im only 19 and really have no exp in this area.

Anyways my question is; I have four CC and a total available balance of $5,400 with a current total balance of $1,604 spread over 2 of them, Which I'll have payed off by December. Last time I checked I had (between all 3) a 670-691 score. By paying off the $1,604 about how many points can i expect to increase on my total score? And would that put me into a qualifing range for a small car loan? I tried to get a $4000 car loan from my bank of 2 years last month and was denied for "high total revolving balances, and short credit history." Thanks in advance, and please feel free to give me all the advise you can :smileyhappy:

 

Michael

Established Contributor
rmily
Posts: 670
Registered: ‎07-12-2008
0

Re: Will I see an increase?


micha3l wrote:

Hello,

 

Anyways my question is; I have four CC and a total available balance of $5,400 with a current total balance of $1,604 spread over 2 of them, Which I'll have payed off by December. Last time I checked I had (between all 3) a 670-691 score. By paying off the $1,604 about how many points can i expect to increase on my total score? And would that put me into a qualifing range for a small car loan? I tried to get a $4000 car loan from my bank of 2 years last month and was denied for "high total revolving balances, and short credit history." Thanks in advance, and please feel free to give me all the advise you can :smileyhappy:

 

Michael


I'll give it a shot since no answers yet..

 

Obviously paying off the debt takes care of one of their reasons, but the other remains and can't really be solved anytime soon. :/ If the bank you tried still can't help after cards are paid off, maybe you could try someone else. Print off your credit reports/FICO scores and bring to a local credit union and see what they have to say without actually pulling your credit history. (After you pay off the CCs).  A down payment might help make them feel better about your short credit history. 

 

How long have your cards been open? Just trying to gauge if 3 months will make a difference. I'm thinking if they've been open a year, 3 months isn't gonna help, but if they've only been open a few months, maybe another few months will make a difference.  Also, is it safe to assume you have a steady income which can handle a small car loan? I would guess so since they didn't mention that but just checking.. :smileyhappy:

 

I know, that didn't answer your question at all. But honestly, it sounds like your score isn't really the problem.  Keep up the good credit habits.  Your scores are good for the limited time you've been of age to have credit and will improve with time and good habits.

Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
0

Re: Will I see an increase?

I reside in South Florida and the automobile business is terrible. There are two problems: 1) no demand and 2) inability to qualify for financing. In order to qualify for a car loan down here you need a higher FICO score that you did in the past AND you need a 10% down payment for any purchase. What you need to do is focus on paying your balances down to 1% to 9% of your total available credit (not zero) AND saving for a down payment. Also, as PP stated, once you have improved your CBR's go to your local CU's and ask them how they might be able to help you. (Bring your own reports and ask them not to pull a hard INQ until you have come to an agreement on something.) I do think you will do better financing away from the dealer. Since there is no demand for vehicles today dealers must mark them down. They have to make money somehow and that would be off the financing. A young person with a short credit history and a soft score is an excellent mark for a finance manager. Shop your financing around, know what you can afford, then go and shop your deal. You'll make out better that way.

 

Best of luck!

New Member
micha3l
Posts: 13
Registered: ‎10-08-2008
0

Re: Will I see an increase?

Thanks, Both of you. But actually this past friday I purchased a very nice Nissan sentra SE-R.

 Could've done it without all the help ive recieved on these forums, Thanks every body for the advise.

 

Michael


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