Chances of approval

[Anonymous]

Hello

I have been in the process of paying off debt and improving my credit score via GW and what not in order to facilitate buying a car later this year.  I really want to apply now with USAA or one of the online services, but I do not want to damage my credit score with a lot of inquiries if I am denied.  Instead I wonder if anyone here might be able to offer their opinions based on experience or expertise.

My situation:

Annual Income 53000

Currently have 1 car loan (2years down, 11k remaining)

Current credit score of 620 (should be going up within the next 2 months due to pay offs and what not)

Credit util of 10%

Mortgage 7 months

I have about 8 inquiries this year, mostly pertaining to when we were trying to get a mortgage. 

The worst part about my credit history is  I have 2 charge offs - both paid.  I GW'd one and had them open another account for me, but the CO is on my report still.  Both are from 2007.

I want to get an auto loan for ~20k within the next 3 months.  Any tips?  Ideas on whether I would get approved with my current situation? 

Thankyou,

brown

[daisyduke]

Hi Brown,

Are you buying another car in addition to the one that you already have a loan on? or are you rolling it into another car loan?

i'm currently shopping for a car and trying to figure out the BEST financing (5% is my number that I want)....my conclusions are as follows and I hope this helps you:

1. If you are not a member of a CU you may want to consider joining one for the lowest possible rate. I will join one and apply the very same day hoping ofr one pull, not two. But who knows what will happen, maybe they'll put more reports than expected. I will plan to secure financing PRIOR to even visiting a dealership. I will know what amount I can get approved for and at what rate. If the dealer can beat it, then fine, go with the lower guy...

2. Auto inquiries that are made within a 14 day period are suppose to count as one.

3. Interviewed a couple of finance guys at a dealership via phone. They look at years on the job, income, debt to income ratio, debt to credit ratio, how you paid or are paying your current car and I'm sure there are more factors.... Some will use auto enhanced which helps those with a good payment history and hurt those that don't have good payment history. I've been told NMAC (nissan) uses auto enhanced...

4.  Check your CO's again to be sure they have reported ACCURATE information. For example, I have two CO's on my CR that I know contain incorrect information...but I'm not going to dispute them now, only when I'm ready to apply for a car loan because they won't be counted in scoring, thus giving me a higher score.  it's just an available strategy because I know that the information is INCORRECT....

5.  Most great financing offers made apply to those with scores 720 and above, but not always....sometimes the score can be around 680 to get the best...(like the ads you see on TV)...

7. What is your age on your credit file and what is your AAoA?  

I would not apply for any loans just yet and the window is far too large right now.

[Anonymous]

1- USAA is extremely conservative, although you may get approved you may not qualify for their best rate.

2- Any credit inquiry costs some points. Thats the nature of the beast. Its like beiong upset yo drive to work costs you gas money. its up to you to make the point drop count.

3- Are you looking new or used?

4- If new you could propbably find financing at a dealership, especially with a down payment

5- have about 20% of the transaction down for a downpayment to ensure a good interest rate and good financing at a dealership

6-Attemp tto secure financing with USAA the week you are ready to buy the car. If they approve you you take that to the dealership with you and see if the dealership can beat the rate you got.

7- if you are AD or family of eligible members see if you can get a sponsorship/membership to NFCU.