@Anonymous wrote:What are the chances of being approved for an Auto loan with the following:
Amount I would be asking for somewhere between 55-65 k
Credit score: EX 653, TU 655, EQ 700
Annual Income: 90,000.00
No Debt other than credit card, with no balance and paid off monthly and current vehicle payment (which I would be trading off)
No Collections
The only late payments showing on my report is from a truck I owned in 2005 when I was 21. I had 5 total late payments then.
My wife would be the joint account just to help build her credit up, She is a student but her credit scores are 640, 700. No collections, Credit card 0 balance, paid off monthly, no late payments. No other debt.
I'm trying to decide whether I have better chances with my credit union or a local car dealership.
Where did you get these scores? Did you get them from a lender? If not from a lender, I doubt these are FICO scores, as it is very difficult to get your EX FICO anymore. Also, I would expect you would have higher scores if the only negatives are some 7 year old late payments and you have no CC debt.
How much do you run through your card per month? What is it's limit? Even though you are paying in full, you might be letting a balance report and having high utilization. If those are FICO scores, something besides those lates has to be keeping them down. I have 7 accounts with 30+ late payments spread across them, some of them 120 and 150 day lates. Mine are just over 3 years old and my scores have rebounded a lot. If you are paying your card after the statement cuts, you might be able to improve your scores simply by paying most of the balance before the statement cuts. You want utilization below 10%. Your CC will report whatever is on the bill. So if your CC limit is $2000, and you charge $1000 in the month and pay in full, you're still showing 50% utilization if you're waiting until y our bill prints.
Also, how many CCs do you have? If only one, you might see score improvement by adding another CC.
ETA: I realize that was a little rambling and may be a lot for someone who is posting for the first time.
1. Need to find out whether those are FICO scores or what we call FAKO scores. If you got all three of those scores from a credit monitoring service (CMS), they are FAKOs. They will not be used by a lender. You should check at least your EQ FICO from this site. You can also get your TU FICO, but it is an older version that will not be used by most lenders. And for an auto loan, they use an auto enhanced FICO, which will be different from the EQ FICO as well. But it is still good to know where you stand.
2. I don't think your scores add up given what you've said. If there are no other negatives, I would think it has to be utilization. For optimum utilization, you want only one CC to report a balance. All others should report $0. For the one that report a balance, you want it to report 9% or less of its credit limit (not total CL across all cards). It seems like you only have one card, so 9% or less of that card's limit. Most cards report whatever ends up on your bill. So if you want $200 to report (arbitrary number, you'd need to calculate depending on your CL), you want to pay your card down to $200 or less before your statement closes. Then, after you get your bill, you pay the remainder before the due date to avoid paying any interest.
A lot of people see some score improvement by adding a second card. I might suggest that, but only after first checking to make sure you are looking at FICO scores, and then making sure you are taking care of your utilization properly. After doing that, you may find that your score is already a lot higher and you don't need a second card.
Starting Score: ~500 (12/01/2008)