topic Re: Before Applying for Auto Loan in Auto Loans

Before Applying for Auto Loan

Anonymous — Fri, 05 Apr 2013 23:06:46 GMT

I have a FICO of 699 and have been rebuilding my credit, I basically only have one credit card, which I had charged a little over 300 w/ a 500 balance however I paid it off so it is now only 30 however this isn't reflected on my Fico for probably 20 more days. Should I wait the until my credit card reflects the new lower balance before applying for a car loan?

Re: Before Applying for Auto Loan

Anonymous — Fri, 05 Apr 2013 23:20:05 GMT

Yes, you should wait until your new balance is reflected and updated on your credit report. Your balance plays a role on your scoring.

I too am waiting till the 9th of this month for it to update before applying for a loan.

Good Luck.

Re: Before Applying for Auto Loan

Walt_K — Mon, 08 Apr 2013 14:27:59 GMT

@Anonymous wrote:
Yes, you should wait until your new balance is reflected and updated on your credit report. Your balance plays a role on your scoring.

I too am waiting till the 9th of this month for it to update before applying for a loan.

Good Luck.

+1. And because you are going from 60% utilization to less than 10%, you can expect to see a fairly nice score bump.

Re: Before Applying for Auto Loan

Anonymous — Mon, 08 Apr 2013 14:47:10 GMT

@Walt_K wrote:
@Anonymous wrote:
Yes, you should wait until your new balance is reflected and updated on your credit report. Your balance plays a role on your scoring.

I too am waiting till the 9th of this month for it to update before applying for a loan.

Good Luck.
+1. And because you are going from 60% utilization to less than 10%, you can expect to see a fairly nice score bump.

+1 Walt is wise!

Re: Before Applying for Auto Loan

Anonymous — Tue, 09 Apr 2013 22:45:15 GMT

I hope you have other lines on your credit report. If the only thing on the report is one low limit credit card. The dealer might give a high rate because of the thin file.