Auto Loan Approval Chance?

[trader92]

I have been building my credit since last year and my FICO scores are up almost 100 pts. I would like to get some feedback on whether I can get approved for an auto loan. Currently have an auto loan (co-signed) for 1 year 4 months, $700/month payment, 11% rate, all on time payments. Only other debt payment is rent $2300. 

Only remaining outstanding bad item is a charge off of $245 which I am paying in full this month. Credit card debt: ~2800, Utilization 33%. Income: $129K (been at my job since 2022).  

FICO 8:

EQ: 633, TU: 634, EXP: 647

FICO AUTO 8:

EQ: 589, TU: 604, EXP: 617

FICO AUTO 9:

EQ: 631, TU: 633, EXP: 659

Purchase Price (incl TTL): $73K

Down Payment: $14K

Loan Amount: $59K

Thanks for the feedback! 

[Adkins]

Is the charge off going to be removed from  your credit reports after it's paid off?

[trader92]

I don't think it will. The charge off is Open Sky which the C/O is now handled through Carson Smithfield. When I spoke to them, their policy is just to update the balance to $0 and note it has been paid in full. 

[Adkins]

That's better than showing the full balance, unpaid. You might try a good will campaign to get it removed completely at a later date. 

[Adkins]

A loan might be doable. You may end up in with a higher APR, which you could refinance once your credit has improved. 

[trader92]

Thanks for the reply! I decided to try Capital One Auto Navigator pre-approval. I was going to wait until next month once I am ready to buy, but decided to try now and just see where I am at. Capital One pre-qualifed me up to $55,000. I started looking at vehicles, and some dealerships are showing "pre-qualified" even though I would have to finance $58K, which is above the $55k prequalification. I am guessing since its somewhat close within range, the dealer can make it work? The APR for a 60 month is 8.5%. Not entirely as bad as I thought, but I definitely would refinance once the score is much better. Any thoughts on the pre-qualifications from the dealers?

[pizzadude]

---

@trader92 wrote:

Thanks for the reply! I decided to try Capital One Auto Navigator pre-approval. I was going to wait until next month once I am ready to buy, but decided to try now and just see where I am at. Capital One pre-qualifed me up to $55,000. I started looking at vehicles, and some dealerships are showing "pre-qualified" even though I would have to finance $58K, which is above the $55k prequalification. I am guessing since its somewhat close within range, the dealer can make it work? The APR for a 60 month is 8.5%. Not entirely as bad as I thought, but I definitely would refinance once the score is much better. Any thoughts on the pre-qualifications from the dealers?

---

8.5% isn't the worst rate, and I'm sure the dealership would be able to make a deal work for you but keep your eyes on the rates & terms they're offering.   If you're putting more money down on the vehicle it might also help. 

[trader92]

thanks for the reply! I agree, i don't think 8.5% is that bad. But i will definitely keep an eye on the terms and the out the door price to make sure they dont sneak in anything at the finish line. Do you have any insight why on Capital Auto Navigator, some dealerships show pre-qualified, and it allows a print out offer summary sheet, which is financing more than I have been pre-qualified for. Guessing, Cap One has a partnership with those dealers and maybe gives them more financing for extra products? 

[coldworld]

8.5% is on the high side. Paying that charge off and paying down your CC util will help your scores and may help you qualify for better terms.