Best course of action

Anonymous · ‎11-16-2007

Here are my current scores:

Your FICO® Scores

TransUnion 651 Equifax 639 Experian 648

I am 21 (22 on the 25th) and I want to purchase a car.. Do you think I could obtain an auto loan for approx 10K? My income is $30,000 the car I want is 13000 and I can put down 3,000.

I have only one credit card, but it shows as 2 positive accounts becuase 1 was closed b/c it was lost and they reopened it.

I have medical collections of about $500 from 2 years ago, I can pay them off but will it help my scores?

I recently applied for an auto loan online and was declined, once from HSBC and once from my bank, Wells Fargo, in which I hold 10000 in my savings account.. so i'm not sure why they declined me.

I also applied recently for a bestbuy credit card (online) and was declined.

What is the trick, should I be applying in person or are online apps handled the same way? I heard that in person they make more of an effort to push it through. Any tips will be appreciated.

Also can anyone tell me why my freecreditreport.com rated me in the 550s and there is a 100PT jump by switching to myfico?

Message Edited by Mike_Tillman on 11-16-2007 10:36 AM

Message Edited by Mike_Tillman on 11-16-2007 10:37 AM

Message Edited by Mike_Tillman on 11-16-2007 10:37 AM

Ausfarm · ‎11-16-2007

For the medical collection try a PFD (pay for delete). Just paying it won't help your score, but paying it makes sense if you can get them to delete it in exchange for payment.

Maybe the reason you're not getting credit is b/c your lack of credit experience. Your scores aren't bad. The lack of credit experience with a collection account makes you look like a risky borrower.

You can try asking for a recon (reconsideration). A actual person evaluating your credit is going to be more willing to dismiss a medical collection.

If the terms PFD and recon are new to you, try searching the forums for these terms.

Anonymous · ‎11-16-2007

Hi Mike, welcome to the forum. Here you will find a wealth of information to help you improve your credit health.

I'll address the medical collection, as I've successfully had 2 of them removed from my CR's a couple of months ago.

IMO, your scores are decent enough to have those med collections removed to favourably impact your scores.

I would suggest not contacting the CA(collection agency)at all. But instead negotiate directly with the OC(orig.creditor) for PFD'S on them(pay for delete).

Search this series of postings for my comments, and you'll find how I did it. It's not the only way, but it sure worked well with me:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=51094&query.id=36347#M51094

Sorry, you'll have to open up another browser window to look at it. I'm on Firefox, and I can't post a url to click on.

Anonymous · ‎11-16-2007

Thanks for both of your responses, I will contact the origional creditors as I actually know who they are.. I wonder why they make it so hard to contact the CA in the first place, you'd think that if they want their money they would make it easy to get ahold of them.

Would the origional creditor take less than full payment for satisfaction of debt, or would only a CA do that, I really can afford to just pay in full and the debt is mine (well, thats debatable, my insco didn't cover me and they are saying its too late to go back and charge them) so I don't feel too bad about paying them..

How much do you think a PFD on all of my derog accounts will raise my score?

I will continue to read everything, as always, its just nice to have instant gratification on the questions you can't seem to find answers for.. so I thank you for that.

I will also need student loans soon, do you think I should purchase a car and then student loans or vice versa, i'd assume that the lending standards for student loans are a lot more leanient than say those for a car loan.

Anonymous · ‎11-16-2007

I'd strongly suggest you make all attempts of getting the collection baddies off your CR before applying for any kind of credit, car included. Note that it might take 45 days to have them deleted, if they accept your offer, though.

Also, I'd suggest you offer to pay in full if you possible can afford to do so. IMO, it puts you in a much more favourable light for them to agree to delete the major baddie.

I think firstly you need to determine, who exactly owns the account. The hospital/doctor or the collection agency. Quite often an OC will actually sell an account to a CA. If that's the case the hospital is taken completely out of the picture, and you're stuck with dealing with CA.

You're doing a good job of asking questions. Keep it up.

Anonymous · ‎11-16-2007

Not only that but I need some way to stop applying for credit.. 3 7 to 10 day responses today.. you'd figure i'd learn, but really I guess in my psychology I take it as a personal failure when I don't get instant approval.. even for something menial.. I am just dissapointed :/ Now my cr will take a hit from the inquiries.. I.. must.. stop.. I just feel so unaccomplished

Anonymous · ‎11-16-2007

I agree totally. With the 2 collections on your CR, they have a death grip on you, as far as getting more cards. You need to go totally cold turkey, for at least 6 months on applying for some new cards.

I've heard that 1 inquiry will ding you 10 points. Sounds about right to me. That's what I've experienced lately.

Don't feel bad. Most of can really, really, really relate to what you're going through.

Anonymous · ‎11-16-2007

I applied for an auto loan a few days ago for a 2001 Audi TT and I just got a call back today, this was before my stupid inquires so hopefully they don't report yet and I can snag the car loan while my fico is still somewhat ok.. I could wait 6 months and shoot for a 700 fico but its my birthday soon and I really want to get into a car (riding a motorcycle now, and its COLD)

wish me luck, its beautiful.. silver convertible

Anonymous · ‎11-16-2007

Wow, can you imagine that.. I was approved. However, I found this GEM of a site, if you are buying a car in California I would DEFINITELY check it out.. http://nationwideauction.com the Audi TT is really undervalued, if I purchase it it will be like paying flat even + interest what its worth, if I use these guys (and hopefully get approved, again) I will be purchasing a bank repo for like 5-10K under the KBB.. can you believe it? Well, i'll check them out tomorrow, wish me luck.. things are starting to look up.. if anything i'll be crusing in the Audi TT