Valued Member
aman31
Posts: 41
Registered: ‎06-16-2009
Need auto loan.

I'm needing to trade in my car within 6 months. I went from no credit to a score of 633 with 4 months. I currently have a Dell account with $1200 limit, currently using 100%, but will be paid off before applying for the auto loan. Also, $500 capital one card. I've using the capital one card every month and paying off. Should I do anything else or just wait on time?

 

My local bank has a credit building loan. You can borrow $500-$1500, the funds go into a cd, then you make monthly loan payments for 12-36 months. I've thought about doing the $500 for 12 months, but wondered I have to wonder if it looks like I needed a loan for $500.

 

Any help is appreciated. I know this is the rebuilding thread, but i'm basically building. I'm 35 and never really needed credit until now. In the past, I was able to pay cash for my car. Thanks.

Starting Score:
myfico score watch 576 (6/4/14)
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
Re: Need auto loan.

aman31 wrote:

I'm needing to trade in my car within 6 months. I went from no credit to a score of 633 with 4 months. I currently have a Dell account with $1200 limit, currently using 100%, but will be paid off before applying for the auto loan. Also, $500 capital one card. I've using the capital one card every month and paying off. Should I do anything else or just wait on time?

 

My local bank has a credit building loan. You can borrow $500-$1500, the funds go into a cd, then you make monthly loan payments for 12-36 months. I've thought about doing the $500 for 12 months, but wondered I have to wonder if it looks like I needed a loan for $500.

 

Any help is appreciated. I know this is the rebuilding thread, but i'm basically building. I'm 35 and never really needed credit until now. In the past, I was able to pay cash for my car. Thanks.


I wouldnt add any new accounts if your going for the auto loan in 6 months. Let everything age further that you have.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Member
havecollectionsaccounts
Posts: 8
Registered: ‎03-10-2011
Re: Need auto loan.

I agree with the previous comment of not engaging in any other loans. Since your credit history started 4 months ago, it won't look good that suddenly you are opening accounts. Keep your balances low and try to have a down payment. I would also apply for an auto loan with a credit union- they are more lenient on credit score and history versus other banks, they also have better rates. I had a 636 credit score to refi my car... Wells Fargo was able to give me 11.7% and a local credit union gave me 4.99%- HUGE difference! If you call local banks and provide them with your credit score, they can usually tell you if they are able to finance you and provide a general rate prior to applying. Good luck!

09/2012
TU- 638 (Lender Pull)
EXP- 644 (MyFico)
EQ- 678 (Lender Pull)
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
Re: Need auto loan.

havecollectionsaccounts wrote:

I agree with the previous comment of not engaging in any other loans. Since your credit history started 4 months ago, it won't look good that suddenly you are opening accounts. Keep your balances low and try to have a down payment. I would also apply for an auto loan with a credit union- they are more lenient on credit score and history versus other banks, they also have better rates. I had a 636 credit score to refi my car... Wells Fargo was able to give me 11.7% and a local credit union gave me 4.99%- HUGE difference! If you call local banks and provide them with your credit score, they can usually tell you if they are able to finance you and provide a general rate prior to applying. Good luck!


I agree, especially since your new with credit. Big banks will take advantage of that. CU's are more lenient.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014