Advise Needed - Auto Loan

[Anonymous]

Hi,

I'm planning to buy a new 2009 BMW 3 Series car & I was wondering whether if i'll be approved for the 2.9 % APR.

Here's my credit profile:

My experian credit rating as of 06/22/ 2009: 693.

15 Accounts in good standing.

Inactive: 13 (Closed, Paid, Never late)

Active Credit Accounts: 2 (Open, Never late)

Mastercard: $11500 / 23000

VISA: $0 / $1200

I don't have any mortagage payments. I don't have anyother autoloans / personal loans.

The reason my credit rating came down is because of a mistake I made 8 months: I closed a lot of my other / old credit card accounts which I'm NOT using.

This has brought down my open credit history to a very short period.

So, can anyone suggest me whether I would approved for the 2.9 % APR or not.

if not, what are some ways to improve my score...

Thanks in advance,

Shamu

[Anonymous]

Closing older cards does not negatively impact your FICO average age of accounts (at least not for 10 years).  It will hurt your percentage of utilization on your CC/revolving accounts if you have balances being carried on some.  You also get hurt if you have balances on more than 3 accounts (inlcuding auto, CC and mortgage) which means if you have a mortgage and auto loan, you should not carry more than 1 CC balance and try to keep the reported balance low.

If you have no derogs and 15 open/good standing accounts, plus some older closed accounts but paid never late, then I have to guess you have balances on multiple accounts and maybe are carrying too much debt (for FICO taste).

And this brings me to my next point.  The lender will look at your income and DTI in addition to your FICO and credit.