Re: New auto loan situation
11-12-2012 06:41 PM
This is a "where do I go from here?" question basically.
So I literally committed credit score suicide on purpose by apping for a buttload of cards a year ago. I did this on purpose so that my AAoA will be a solid brick wall in a few years. My starting score was 641ish I think it dropped somewhere to 615 and I stopped checking because it was pointless since I knew the scores were going to stay low for a year or so. I got a little purchase happy with my cards, so my credit cards are currently standing at 80% UTIL. Well, the Discover and US Bank cards anyway. I didn't really pay much attention to this as I wasn't really needing a car or a home loan ... or so I thought.
The goal is to get this car in February or March. In that time I will be excercising complete financial discipline and paying my debt to around 20%-40% UTIL. It's kind of addicting to have credit the first time, but I am thankful I have a job with sufficient income to cover the expenses... most of my apps last year were during this time last year in Nov thru March so by the time I get a car hopefully the INQ score damage will be reversed.
I have a somewhat short credit history. I have a previous auto loan my parents cosigned for. They paid for it- it has a 30 day late on it from 3 years ago but it is paid off. There are no blemishes on my account. Everything is in good standing. My credit card history started in Feb of this year. I've been working for my state for a year and 3 months. I switched to another position in the state that pays 10k more, so I make 36k at this point in time with my current job.
My student loans amount to around 32,000- monthly payments are 150 but I am going back to the standard repayment soon which would double it to 300.
I think if I get to my goals I will be looking at a score of 660-680. Realistically speaking, do you think I'll be able to get a loan at a decent APR? Will I need to expect to pay some down payment? I have my car I want to trade in- the suspension I think is literally falling apart even though it's 5 years old. Such a shame. I've thrown in $2000 in repairs this year and I think it's making a humming noise which I really don't want to get it taken in and fixed again... not when the last time I fixed it was only 6 months ago.
I live with my parents, I pay $450 a month in rent if it can be so called + some misc. bills I'll take care of. But I told my parents about my situation and they're ok with me funneling that money towards a car payment.
Thanks a lot for reading. I know this was a long read.
A 30 day late is a blemish on your credit record, it will still affect your score to some degree, as well as, if not more so your Auto enhanced Fico score which the lender will possibly pull. It will depend on your DTI(I don't see where you stated your income, so hard to say). If you let your accounts age, and get your utilization down to at least below 30% for scoring purposes( 19% or 9% will even be better), I think you should not have a problem getting financed if your DTI is adequate.
Starting Score: 500's
Current Score: 761 EQ(DCU), 758 TU(Barclay), 788 EX(Credit.com)
Goal Score:760 X 3
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