High Credit Card Utilization but need Auto Loan

[Society1]

Hello i currently need advice on how to successfully secure a NEW auto loan for work purposes..my score currently 580 due to a late payment from affirm which i will later try to dispute and also due to high credit card utilization which is at 97%. I' currently have 5 credit cards w/ exceptional payment history w/ the majority cards being 2 years old.. i also have a auto loan(7k) 1yr old w/ exceptional credit history & personal loan 14months w/ exceptional credit history! I need a work truck which is around 70k-75k that i can generate income asap but i'm knowing in order for me to get consideration i need to clean my report up. Any advice on where to start first or advice on if still possoble to get auto loan if i do recommended certain steps

[simplynoir]

You kind of already identified the issues you need to tackle to improving your scores

Affirm from searching the forums doesn't seem keen on removing late payments but hopefully someone with experience or first hand knowledge will say differently on that. Regarding the utilization if 97% being reported by you is the total across all your cards you have bigger problems to tackle right now in getting that debt paid off. With that kind of usage I don't see any bank offering an auto loan with any favorable terms. However, if the debt is only on one card and/or manageable I'd see about getting that lowered. Depending on what amount fo money you can throw at it you should see about getting below certain utilization thresholds to get the most out of your payments. We will need information on your current cards and their usage/limits to help further if that's the case

[Society1]

ok thanks! if i get each of  the 5 cards utilization to 30% think that will be okay?

[Society1]

And i was thinking goodwill letter to affirm and hopefully they will understand

[increasingmyfico]

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@Society1 wrote:

Hello i currently need advice on how to successfully secure a NEW auto loan for work purposes..my score currently 580 due to a late payment from affirm which i will later try to dispute and also due to high credit card utilization which is at 97%. I' currently have 5 credit cards w/ exceptional payment history w/ the majority cards being 2 years old.. i also have a auto loan(7k) 1yr old w/ exceptional credit history & personal loan 14months w/ exceptional credit history! I need a work truck which is around 70k-75k that i can generate income asap but i'm knowing in order for me to get consideration i need to clean my report up. Any advice on where to start first or advice on if still possoble to get auto loan if i do recommended certain steps

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   Ford Motor Credit or Ally may be willing to play ball but the rate will be high with your current profile. On a truck that expensive you will be looking at a monster payment. I would also imagine you needing some cash to make it happen. If it's not an emergency I would recommend getting your utilization down first and letting a few good payments push that late back. Also maybe a cheaper truck? 

[TattnallTrio]

I think you can get it done provided your monthly payments-to-income ratio will be less than 50% including the new work truck payment and you don't have any other open auto loans. 
Your credit score and the risk associated will determine the interest rate. 
If you get a denial from a $70k truck, I'd try again with a $20k one and see what happens. 

[Society1]

Yes I think most importantly I will drop my credit utilization first try to get all cards to 30% or near there for sure before I do anything. I was told to try both those banks thanks a lot brother appreciate it. I will definitely let you know how it goes

[disdreamin]

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@Society1 wrote:

And i was thinking goodwill letter to affirm and hopefully they will understand

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I read back through your posts and in the thread about the Affirm loan you were warned not to dispute accurate information,  and others have already mentioned that Affirm doesn't seem particularly open to goodwilling things. It may be a challenge to get those negatives removed, but certainly worth trying to goodwill.

I'm struggling to understand your credit timeline from reading your older posts, and am hoping for some clarification. When you inquired about apping for new cards in early December 2021, it sounded like you were AU only one Disco card and had no other cards. Also, at the end of January of this year you mentioned having a new auto loan that hadn't reported yet (presumably the $11k loan from May 2021 where you said you financed a car for your mother). That info isn't aligning well with what you posted in this thread. Could you clear up the discrepancies so we could have an accurate picture of your credit portfolio?

Lastly, you mentioned being denied for a $40k loan with $8k down for the Sprinter last year. Given that, it seems like a new auto loan for $70-75k will be a stretch only a short while later. Paying down the cc debt should help with that and getting total utilization under 9% would be ideal, along with paying down/off the current auto loan. If it were me, I'd start there. That, coupled with ordering the exact truck you want since there will be a good 3-4+ month lead time for delivery (unless you're willing to pull something from the lot and possibly pay MSRP or higher) should buy you time to get your credit in a better place before you take delivery.

[Society1]

So I went to the lot today for ram 3500 & was told from finance manager after reviewing my credit. No Inquiry to the bank I showed him my experian and what I was trying to do. He just said that 70k-75k not happening  even w/ the 11k auto loan & me paying my cards down. Business credit paydex is good but by it not being up & running I can’t use it

Even w/ my exceptional payment history on both my business and personal credit. I also offered 20-25% and he said no they not going to do it

[increasingmyfico]

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@Society1 wrote:

So I went to the lot today for ram 3500 & was told from finance manager after reviewing my credit. No Inquiry to the bank I showed him my experian and what I was trying to do. He just said that 70k-75k not happening  even w/ the 11k auto loan & me paying my cards down. Business credit paydex is good but by it not being up & running I can’t use it

Even w/ my exceptional payment history on both my business and personal credit. I also offered 20-25% and he said no they not going to do it

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    Try Ford when you're ready. They are typically the most willing to play ball.