Car loan approvals...? do they see how long have you been in that credit score?

[Anonymous]

Hi, this is my first post

My score went down to 560's a year and a half ago with 5 missed payments on a store credit card (with wells fargo) because I could never setup the auto-payments. anyway 4 times 30 days, 1 time 60 days. payments were less than $60. I paid off the card this year, february'19.

2018 March, June, July (60), Nov   |    2019 Feb 

My revolving debt was at 93%. I have been paying off my cards. Now it's 60%.

And I am around 650ish across. 

The only derrogatory mark is that 60 day. besides that excellent payment history. 

8 years the oldest card, 4 years average

It should be close to 30% with this last big payment I made. And the simulators say it should be around 700. (I really hope so, considering those late payments)

NOW... BIG QUESTION...

I need to change my car ASAP, before winter hits. Do car loan lenders see/care how long have you been in that credit score? 700?

If I only got to that number in that last cycle. Is that good enough to get a better rate, or do they want you to have been there for a while?

Can I car shop as soon as I hit that number? I know 720+ would be better, but I am definitely not getting there before winter.

Any advice about what lenders are better. shop lenders myself or whatever car dealership has?

thanks for your insights

[Trudy]

Like utilization, scores have no history/memory.  If you were at 850 today and drop to 750 tomorrow and you apply tomorrow, they would never know you were at 850 the day before.  It's a snapshot in real time.

Lenders will only see what is on your credit report at the time they pull your credit.

[Anonymous]

So in your opinion. As soon as I hit the number I can go shop for loans the next day?

(by next day, I mean I would check on equifax, experian, transunion sites when they update the last payment, around a week after pay date)

[Trudy]

Yes in the sense you would want to check your actual FICO scores before applying.  It is not a given, whether expected or not, that your scores will change after payments post.  And as most will say on this forum, simulators are trash (even FICO's) although every once in a while they come close.  And you would want to check through myFICO as each credit bureau's site other than Experian provides a non FICO score.  Most lenders use FICO scores.  (FYI - I do not work for myFICO or any affliate and not trying to sell you anything, but it is the only place you can get all 28 FICO scores.) 

Making large purchases like an auto or home is a time that is well worth the expense of paying for all of your scores in my opinion.  The simulator provides a guess for your classic FICO 8 score (1 of them not all 3 bureaus).  The lender may use FICO auto score 2, 4, 5, 8 or 9. And may only use one of the credit bureaus where the same score type may be different with another bureau even if all have the same information.  As you can see with my F8 scores below and many peoples sig.  I have identical information on all 3 CB and all 3 scores are different.  You can always ask the lender which score from which bureau they use so you know which score they will be looking at.

So as soon as you know your scores are where you want them to be you can apply.  Note that if other activity happens the next day (after you get your scores) your scores may very well change.  Although we often don't see score changes daily because most CMS don't provide daily updates to FICO scores, it could happen daily.  It's all about the information in your credit report on the day your credit is pulled.  When it changes, your score may change.

[AllZero]

For auto loans, I would recommend joining a local credit union or online e.g. DCU. Soft Pull EQ 5 for membership.

Check out the auto loan forum for information.

https://ficoforums.myfico.com/t5/Auto-Loans/bd-p/autoloans

[pinkandgrey]

Your score on the day of application is what will be used. However, I will say that having a decent score isn't a guarantee of being approved for anything-be it cards, loans, etc. 

With car loans, almost anyone can get financed, but you want to make sure you're getting the best rate!

Good luck and enjoy that new car!