Auto lease and outstanding student loans

Anonymous · ‎07-08-2018

I have still about 15k in ourstanding graudate student loans that I have always made payments regularly, nothing has been missed. But I cannot pay off right now.

I also have minor credit card payments that are not topped off and are payed regularly as well.

I rent apartment.

I need a car. Yes need, not want. A local dealer gave me a rating of 581 in the auto FICO when my regular fico is 619. So the dealer said no to a lease.

I have reduced my student debt since I last bought a car on an auto loan. My salary has increased. And no additional debt has been added in credit cards

What are my option here? Do I call all the local dealers to find out what it will accept? And if all ask for Auto FICO, what are my options again?

A car loan would considerably put a dent in my living expenses, which are not extravagant or even higher median at best,( no extra dinners, no entertainment extras, no vacations, no fancy clothing) so I'm trying to avoid this. Is a car loan my only option and how do I get names of different lenders that will not pull hard reports on my credit that ultimately affect my score as well. UCH UCH

Please help me navigate through this.

Anonymous · ‎07-08-2018

If you have reduced your debt then that means your score have improved? Have you checked your current score? What is it? Based on the score, if you insist on a lease, you will have to get a co-signer.

Anonymous · ‎07-08-2018

Oh yes. I have reduced my debt. I have increased my salary. The numbers above were 2 weeks ago.

Do I have to call each individual dealer and talk to the finance manager inquiring what tier number is acceptable for a lease?

Does this mean that depending on the underwriter of the lease and the risk that it and the dealer wants to accept the acceptable number could change.

How is a cosigner evaluated? What percentage contribution to the total number is counted?

pipeguy · ‎07-09-2018

Welcome to the MyFico forums - personally, I would avoid a lease at this point and either go with a cheap used card for 6-12 months while you work on getting for your credit scores up or consider making a strong down payment of 20%+ on an inexpensive used car. Considering your cash flow (payout) base, which from your post seems to be what is holding your scores down you are not going to help your scores or situation by taking on a new car lease right now. Another option is to consider "unpopular" vehicles such as 4 door sedans right now since their demand and price are depressed - popularity cycles of course but if you are looking for function over anything else no sense in paying for your car "need" based on popular choices (more of the want than need category).

Anonymous · ‎07-09-2018

Yes. I agree. Using a used car that has as low mileage as possible and is certified maybe the way to go for 1-2 years till hopefully my credit score goes up.

I am ignorant on the following issue but how long does it take for an auto enhanced auto score to reflect the payment of a car auto loan that I paid off in November 2017?

pipeguy · ‎07-09-2018

@Anonymous wrote:
Yes. I agree. Using a used car that has as low mileage as possible and is certified maybe the way to go for 1-2 years till hopefully my credit score goes up.
I am ignorant on the following issue but how long does it take for an auto enhanced auto score to reflect the payment of a car auto loan that I paid off in November 2017?

Generally 1 reporting cycle or about 30 days. That said, if that was your only installment type loan, that factor depresses your scores it does not increase your FICO score - due to no installment in your credit mix (usually minus 15 to 20 points).