Re: Paying off car/credit score
11-21-2012 05:51 AM
I was in a wreck that was not my fault a few months ago and still owed about $2500 on my vehicle that was considered a total loss. The other person's insurance picked up the tab but my credit score has not budged in those months since.
I talked to a loan officer at my local credit union shortly after the accident about an auto loan and he advised that I wait until the insurance paid the balance of the vehicle off before applying for another loan. He said this would help in their (credit union) eyes that it is not a debt that I am paying on and it would help my DTI ratio. I waited, and applied for $30,000 and was approved.
Not sure if any of that helped or not but that's my story.