Established Member
Posts: 13
Registered: ‎10-22-2012
Re: Auto loan advice from an Underwriter

Looks like a lot of good insight here, what do you think about my situation:


I need a new car, I'm pretty much decided on the Honda Fit as its price is pretty low and I like the car. (Expecting to pay low 17k out the door, and hoping to put 3000 down) Went on and got my EQ and TU scores, 741 and 712 respectively.


Quick credit history: I've had two previous car loans both paid off. I have a fed student loan that is 20% paid. I have 1 credit card, however my credit utilization on that card is 80%. I have nothing negative on my credit report, not even one 30 day late payment.


I want to secure the best rates for a new car but may have to finance for 72 months. (Santa Barbara isn't cheap) I dont mind payment a little bit higher interest for 72 months. Do you think my high credit card balance will force me to pay a higher interest rate though? I'm hoping by the time I buy the car I can be down to 60% utilization. There is a credit union with a really good 72 month rate (3.25) so I'm hoping to obtain a loan from them.


Thanks for your opinion.