What is the possibility of getting approved?

[Anonymous]

My lease is up at the end of June and need to decide to continue renting or buy.  

My current income is 58,000 gross

I have a car loan with a balance of 3,000   390.00 per month

I have zero balance on 2 secured credit cards.  One of which I just opeded last month at the recommendation of a banker.

I have one charge off with capital one for 2800 which they offered me a settlement of 2000.  I am not sure if I should pay that now or wait.

I have a charge off with chase that was paid 

One collection account for 130 which was also paid 

I sent proof of payment and request to update or deleat to all Credit bureaus today.

My FICO 8 is  636  629  630

My FICO 2 is  640 647 and 652

FICO score is 636   629 and 630

Will the new credit card help my score? or hurt it?

Should I wait to try to get a pre approval until the credit bureaus review and update my delinquent accounts?

I also do have savings for downpayment.

Any advise would be greatly appreciated!  

[Lemmus]

...ideally you should read Shane's sticky at the forum top on the info needed to provide you the best advice ...and then post it here in the same manner

...questions that popped immediately ...how many current on-time payments do you have on the auto loan? ...the rates on that loan appear predatory ...if you have 6 mts or more of on time payments, you should be able to easily refinance it at $200 mt or less with much better rates ...would improve your DTIR significantly

,,,you will need to pay Cap One ...ask for a PFD in return for paying it, but either way, pay it

...the new card will hurt at first but help sooner than later ...keep 1-9% balance on one card, PIF all others ...this gets optimal revolving account scoring

...you can apply now but if in your shoes I'd wait, extend the lease a bit if possible ...a less than 60 day house search and loan closing is really pushing it imnsho although it can be done if everything just falls into place for you ...hth

[Anonymous]

I just read Shane's post.  Great information.

I have never been late with my car payment or secured credit cards with my credit union.   I pay 8.8% interest for the auto loan.  Should I refinance this loan?.  I have had several auto loans with them and always paid off early.  They offer mortage loans.  Should I apply with them?  I cannot extend the lease at all but can pay off the Capital One today and ask for removal for payment.

I take it my score is just too low yet to be approved.  Even with a higher intrest rate?  With refinance in the future?

[Lemmus]

...$300 mt payment on a $3k loan just doesn't match an 8% CU loan ...is it short term?

...no, your scores are ok especially if you have an established relationship with a CU ...definitely try them for your mortgage ...a 640 FICO mid mortgage score is usually the gateway for decent mortgage loan rates ...but anything you can do to improve those scores and lower your DTIR will work toward your getting the best rates available, normally at 720 and above ...hth

...that unpaid CapOne is probably taking a good sized chunk out of your current scores

...but with a bit more than 60 days staring you in the face, you should be talking to the CU and a realtor asap ...you CAN find and close on a house in well under that time ...but as is well attested to on this forum, the unexpected happens more often than not and "oops" is a dirty word ...if there is a problem with anything on your reports it can often take 30 days or more to fix because of the CRA reporting cycles ...so like I said, 9am tomorrow would be a good time to get started ...hth

[Anonymous]

I should have clarified the original loan was 21000 for a vehicle and the balance is 3100.

Thanks for the advice.  I'm going to start on this now.