ETA: Removed all the fluff.
I ended up staying behind quite a bit but would always pay enough to keep the car from being repossessed. Anyway, during the last few months, the financing institution became increasingly less willing to work with me and accept payments and would also tack on additional fees that would basically double the payment. At the end, they had my car picked up although I had already made arrangements with them to pay the car off. I was supposed to pay it off on Friday and they had someone pick it up Thursday. Anyway, I paid the car off on Friday as agreed but they filed the loan as repossessed. Fast forward to two years ago when I purchased my home, I had to reach out to the lender because the underwriters wanted to know about the repossession as I had paid in accordance to what we agreed on. Turns out the company was out of business and my file had been moved to this firm that was handling previous accounts. Spoke with the representative and told her my predicament. She pulled up my account and was perplexed as to why the loan showed as repossessed but was paid (I still have this vehicle to this day). She apologized for the inconvenience the previous lender caused and wrote a letter explaining that the car was paid off with the date that it was paid off on the company letterhead.
With all that said, I want to know what issues this may cause with my new loan. My scores are as follows and I'm working on getting them as close to 650 as possible.
FICO Score 2:591
Fico Auto Score 8:620
FICO Auto Score 2:640
FICO Score 9:607
FICO Auto Score 9:614
FICO Bankcard Score 9:609
Here's what my credit report shows.
SOUTHSIDE FINANCIAL GROU #43349****
1600 E PIONEER PKWY#300
ARLINGTON, TX 76010
Phone number not available
Date Opened: 04/01/2010
Responsibility: Individual Account
Account Type: Installment Account
Loan Type: AUTOMOBILE
Date Updated: 02/27/2014
Last Payment Made: 02/21/2014
High Balance: $15,995
Pay Status: Current; Paid or Paying as
Terms: $474 per month, paid
Monthly for 42 months
Date Closed: 02/27/2014
>Maximum Delinquency of 90 days in 12/2013 for
$1,472 and in 01/2014 for $1,455<
Remarks: >REDEEMED REPOSSESSION<; CLOSED
Estimated month and year that this item will be removed: 07/2020
Have you tried disputing this item? Especially with that letter I'm surprised if it won't be removed from your credit reports. Either way good news is it falls off soon even if they won't remove.
With it on your reports, you will be approved but my guess is at a high APR due to the low auto FICO / presence of a repo. If you want to get a sense for how badly it'll impact you, you can try to run Capital One's Auto Navigator which is only a soft pull and see what (if) they pre-approve you.
You can definitely try though that is a great rate for a 620 Auto FICO these days in my opinion. Do you have a local CU you have a good relationship with (smaller more local CUs are more likely to try to beat Capital One's offer imo)? I don't think DCU would be a good fit with your score profile. I'd suggest NFCU for sure but unsure if you would qualify to join.
So I did the simulator through here and it stayed I'd be at 678 if I pay off all my cards. What do you need to get into NFCU?
I do have a local credit union by me but I don't have a relationship with them.
I really appreciate your response.
You typically need to either be active duty military, a veteran, or have a blood relationship that is (and who would be willing to join so you can join through them).
A 678 would likely get you decent rates from DCU, but the problem is it might take a while to update once you pay off your cards. How long is the Cap One rate good for? If you have the $ to pay off your cards, you could try paying all of them off except 1 (leave a very small balance on 1 of them) and wait for it to report before going to a CU.
Your local CU maybe good, but they may not be. You could try talking to a loan officer there and see what they say though.
Ah, I don't have any military ties at all.
The Cap One rate is good for 1 month. I have the money to pay off the cards, I use my cards to pay my bills then I just pay them off. I'll pay all off them off and just keep maybe $50 on one card. I don't actually plan on getting a vehicle until June-July so I think I have a little bit of time.
I'll do as you say and then when I'm ready, I'll go to Cap One again and then a few CU's.