topic Long Term Planning in Auto Loans

Long Term Planning

Anonymous — Fri, 30 Jan 2015 03:59:54 GMT

My BK7 was discharged in November 2014. I hope to be able to hold off buying a new car until Nov. 2016, so I'm trying to make long term plans. My wife and I are both retired at this point, but I won't start collecting Social Security until August of 2016. My wife is currently collecting and receiving a small annuity from an old 401K. We are currently surviving by taking monthly withdrawls from my IRA. Once I start collecting in 2016 our monthly income will increase about $500 per month, thus the hope I can wait till then before having to buy a car.

We are obviusly in credit rebuild mode right now, but the question is which of us we should try to concentrate on. In my prevoius credit history I show 4 auto loans, my wife shows none. But my last auto loan was a voluntary surrender prior to my BK7. One of my auto loans will likely fall off my report by 2016. Of the remaining 2 I show 0 late payments.

Unfortunately we are on a very tight budget right now and I can't afford to pay for real FICO scores so only have FAKO numbers to work with. But right now those numbers show about a 25 point difference with mine being the higher. I suspect that's due to the extra TL for those auto loans being on my CR.

But I'm worried that when they start pulling auto enhanced scores my negative auto TL will bring me down. So what say the experts? Will my wife have a better chance at a loan with a slightly lower score and no auto TL in her history or will I still be the better choice?

Re: Long Term Planning

Revelate — Fri, 30 Jan 2015 07:59:51 GMT

@Anonymous wrote:
My BK7 was discharged in November 2014. I hope to be able to hold off buying a new car until Nov. 2016, so I'm trying to make long term plans. My wife and I are both retired at this point, but I won't start collecting Social Security until August of 2016. My wife is currently collecting and receiving a small annuity from an old 401K. We are currently surviving by taking monthly withdrawls from my IRA. Once I start collecting in 2016 our monthly income will increase about $500 per month, thus the hope I can wait till then before having to buy a car.

We are obviusly in credit rebuild mode right now, but the question is which of us we should try to concentrate on. In my prevoius credit history I show 4 auto loans, my wife shows none. But my last auto loan was a voluntary surrender prior to my BK7. One of my auto loans will likely fall off my report by 2016. Of the remaining 2 I show 0 late payments.

Unfortunately we are on a very tight budget right now and I can't afford to pay for real FICO scores so only have FAKO numbers to work with. But right now those numbers show about a 25 point difference with mine being the higher. I suspect that's due to the extra TL for those auto loans being on my CR.

But I'm worried that when they start pulling auto enhanced scores my negative auto TL will bring me down. So what say the experts? Will my wife have a better chance at a loan with a slightly lower score and no auto TL in her history or will I still be the better choice?

Work both, no good reason not to, and you may need joint for income qualification, and unlike a mortgage as I understand it they use the higher of the borrower's scores so if one of you suck on a given lender's FICO model, the other will be OK.

Sign up for CK's service for their reports, and go grab an account at DCU: kill two birds with that one, monthly FICO score, and it's an excellent auto lender when you decide to pull the trigger. Also I think they don't pull auto-enhanced so your wife might score better there too.

Re: Long Term Planning

Anonymous — Fri, 30 Jan 2015 12:31:24 GMT

Thanks, I've seen DCU many times on this forum, but I didn't know they had real FICO scores available.

Do you think just opening a savings account is sufficient or do I need to actually do a secured loan with them? Or should I open a savings account now and a secured account later. I'd like to save HPs for real credit cards.

BTW, we were both able to get unsecured cards from Cap1 for with a $2K CLI just a month after discharge. So I'm thinking a good rewards card is 3 or 4 months away.

Re: Long Term Planning

gdale6 — Sat, 31 Jan 2015 20:20:47 GMT

@Anonymous wrote:
Thanks, I've seen DCU many times on this forum, but I didn't know they had real FICO scores available.

Do you think just opening a savings account is sufficient or do I need to actually do a secured loan with them? Or should I open a savings account now and a secured account later. I'd like to save HPs for real credit cards.

BTW, we were both able to get unsecured cards from Cap1 for with a $2K CLI just a month after discharge. So I'm thinking a good rewards card is 3 or 4 months away.

I believe a savings and checking combo is all thats needed if you dont go the savings/CC route.