APR questions

[BluesFan]

Hello,

I have been shoping for a new car just to test the waters as I will need one here soon, and I have recieved about 3 approvals so far but none I will really accept. My scores are 610,595,604. 

My mortgage is currently reporting 30 days late though even though I will be caught back up in less than a week.

Do you think that my offers will drastically improve after the mortgage reports current? Right now I am getting offers to the tune of 12-15%, as well as denials.

[DrZoidberg]

Do you hav eany other derogs? Those rates seem on par with a late mortgage and very low scores. 

[BluesFan]

Sadly yes, we have been recovering for a year and a half now from almost utter financial disaster. I have many lates, all paid and accounts current though, as well as a charge off that has been paid off. 

The mortgage is the only account reporting as not current. It will be however at least by the end of the month depending on how fast they report the payment I will be making soon to bring it current.

I guess my question is, even if that account gets current and my score jumps above 620 over the next six months will I really be looking at any better rates? Considering those types of derogs.

I know I won't qualify for a great loan anytime soon, but getting around 9% in the next 6-9 month would be acceptable.

[CreditDunce]

I don't have any experience with lates, but my understanding is 30 & 60 day lates will really hurt for the first 2 years.  90 day lates and worse will hurt for about 7 years.  I am sure getting everything current will help a good bit.  I am not sure how many lenders would want to even lend to someone currently late on their mortgage.  But I would expect a short term miracle.   But I would expect some improvement in 6 months.

If you have high utilization on CC's, paying them down would be a big boost in the short term.   I would also try to limit the number of INQs before you are really ready to buy.  Each one does a little bit of damage.

[BluesFan]

I have already taken care of the CC utilization, and my current scores are based off of boost from that and paying off the charge off's. I doubt I will see above 660 for at least 2 years to be honest. 620 is my short term goal right now, and I will have to make due with that when I absolutley have to purchase. Hopefully 36 months down the road I will start getting back to around 700.

I have paid off many car loans and have not had really any issues with them so hopefully that helps when I do buy.

[Anonymous]

One thing to keep in mind is that scores don't care if you went back and paid off a charge off or other lates. Once they are in the report you won't get a boost from paying them off.

Having said that, lenders that have you borderline or something would care I would think. With a solid auto payment history I think you are on the right track.

Get the mortgage current limit the inquiries and save as much as you can towards a down payment.

Good luck with it.