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Best plan of action

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Shanem1c1
Established Member

Best plan of action

Here is my cr in a nutshell.
Bad:
Sallie Mae several 90+ lates most recent 4 yrs old
Cap one paid charge off 2 years old
Cap one paid charge off 2 years old (HSBC originally)
Calvary collection that is paid

I also have several positive tradelines.
2 credit cards at about 60% utilization.

I am going to be applying for a car loan. Actually want to do it today. My dilemma is that I just paid down credit card balances that will put me at about 11% utilization. Question being: if I wait for these to report will I see enough of an increase to get a better rate?
Current scores are EQ 644 Experian 633 not sure on TU although CK shows 620. Basically wondering if I should be patient and hold off a week. My bank uses an average score and 660 would drop my rate a point.

Thanks!!
Message 1 of 6
5 REPLIES 5
gdale6
Moderator Emeritus

Re: Best plan of action

No one will be able to tell you if you will get enough points out of this but I will tell you this; one would want to show him/her self in the best light and with the best possible FICO to a prospective lender.

Message 2 of 6
Shanem1c1
Established Member

Re: Best plan of action

I guess my question is will I see an increase by going from 60% utilization to 11%. I'm so borderline right now that a small increase will help but a decrease will hurt.
Message 3 of 6
Shokk
Established Contributor

Re: Best plan of action

It certainly can't hurt to let the new util kick in.  Have you tried to get pre approved anywhere yet?  I know its hard to be patient.  My util is NOT good and I still have collections.  I got pre approved through Cap One blank check program let the dealer pull as well.  Ended up with a rate a little over 5% with 5 charge offs still reporting.  All about 5 years old.  My scores were a little higher than yours, but I also have 3 or 4 more new trade lines.  Do you have previous car credit? This will help if its a positive TL.

I don't know my start scores, but low 500s. 6/2013

2/19/15
EQ FAKO - 638
EX FICO - 665
TU FICO - 697
Message 4 of 6
Shanem1c1
Established Member

Re: Best plan of action

I have not tried any pre approval as I am afraid an inquiry will lower my score and put me below the threshold I need to be at. I have one inquiry on my cr right now. I had considered cap one but with 2 cap one charge offs I highly doubt I will have any luck!
Message 5 of 6
Shokk
Established Contributor

Re: Best plan of action

Regardless of whether or not you wait, you really want to try and get a pre approval 1st.  A dealership is obviously going to try and make as much money on you as they can.  This includes making rate. IE. offering you 10% when the bank said 7.  If you can't get pre approved, you might want to wait until you can.

 

A dealership can get you a better rate than you can get on your own. (Not always true of course, but true enough often enough.)  It still helps to have a starting point.  My Cap One approval was for 7.66% for 72 mos.  I ended up with 5.15%.

 

I was in the business for 5 years, so that helped, but always be as prepared as you can.

 

And you're never going to know anything without an INQ.  1 more is not going to kill you.  i went from 8 to 16 while shopping, but most of those are scored as 1 INQ becaue they were all pulls for a car loan on the same day.  Do NOT hop from dealer to dealer and let them all pull.

I don't know my start scores, but low 500s. 6/2013

2/19/15
EQ FAKO - 638
EX FICO - 665
TU FICO - 697
Message 6 of 6
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