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I really need a new car. How is my credit profile?

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New Contributor

I really need a new car. How is my credit profile?

I bought a 6-year-old pre-owned car in February 2017. This was my first car purchase. Unfortunately, this car has begun to have cost-prohibitive mechanical problems. It needs upwards of $9000 worth of repairs, is no longer safe to drive, and was appraised by Carmax at only $9500 before the CEL was a permanent fixture of the instrument cluster. I paid approximately $24,600 for this car with taxes, warranty, and fees. The price of the car was approximately $19,600. I was refunded the money for the warranty because it was inapplicable. I also received a $500 additional refund. I put down $4000, leaving me with a loan of $20,600. The loan was opened jointly with my father. My remaining loan balance is approximately $15,400. I have the ability to pay either the upside-down balance or repairs. I think the latter is irresponsible, and both a dealer and an independent mechanic have told me as much.

 

If I choose to get rid of the car, I am only interested in leasing a new vehicle. This 6-year-old car is loaded with features and originally retailed for approximately $74,000. I am looking at new cars of a similar price point from Land Rover, Mercedes-Benz, and Volvo. I am concerned about my credit profile, more than my scores. My scores are below 700, but that is because I am carrying a balance on my credit cards right now. The score estimators all point to a FICO above 710 if I pay them all off.

 

I have four credit card accounts in my name. I will list them:

 

American Express - $5,000 limit - opened 10/2015

Chase - $5,000 limit - opened 4/2016

Barclays - $600 limit (down from $1,500) - opened 9/2016 (used to finance iPad with no interest) - one unintentional 30-day late payment in 8/2017, and my only derog ever

Capital One - $1,750 limit - opened 11/2016

 

Total revolving limit: $12,350

 

I also have two loans in addition to my auto loan:

 

CU - $1,500 secured (24 months) - $69/month - opened 12/2014 (closed, paid as agreed)

City National NJ - $1,000 secured (12 months) - $89/month - $356 remaining - opened 2/2018 (open, pays as agreed)

 

I have two authorized user accounts:

 

Capital One - $500 limit - opened 1/2017

Chase - $1,500 limit - opened 8/2006

 

As you can see, my credit profile is not that old but isn't terribly new. I am looking at 36-month lease balances between $30,000 and $43,000. Am I aiming way too high? Thanks!

25 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $47,148 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - orig. $20,617, paid/closed
Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, cur. $370
Equifax - 729
TransUnion - 740
Experian - 752
38 REPLIES 38
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New Contributor

Re: I really need a new car. How is my credit profile?

I was recently approved for a Capital One auto loan refinance at a slightly lower interest rate, but I declined. I was also pre-approved for American Express Platinum, but I declined because of the annual fee. 

25 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $47,148 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - orig. $20,617, paid/closed
Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, cur. $370
Equifax - 729
TransUnion - 740
Experian - 752
Message 2 of 39
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Frequent Contributor

Re: I really need a new car. How is my credit profile?

Your scores are not good enough for the best leases.

Sounds like you should use the money you have for the negative equity to either pay off your credit card bills or bring down the balance on your auto.

Seems like you have incentive to fix the car since dad was kind enough to cosign and doesnt sound like youll be able to unload it all that quickly.

Starting Score: 475
Current Score: 649
Goal Score: 690


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Message 3 of 39
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New Contributor

Re: I really need a new car. How is my credit profile?

I visited a local Land Rover dealership and spoke to the finance manager. He said a 700-720 score is Tier 2. I also told him about my credit and loan history. He said it sounded approvable. I am a little skeptical. Should I be?

25 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $47,148 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - orig. $20,617, paid/closed
Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, cur. $370
Equifax - 729
TransUnion - 740
Experian - 752
Message 4 of 39
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Frequent Contributor

Re: I really need a new car. How is my credit profile?

Yes. You are financeable but at ugly terms and youll be buried in a Land Rover.

As an F&I Manager, I would tell you to hold off until you can get scores above 700 and lease at the best terms possible.

Dont rush it or youre going to be buried for years. Best of luck.

Starting Score: 475
Current Score: 649
Goal Score: 690


Take the myFICO Fitness Challenge
Message 5 of 39
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New Contributor

Re: I really need a new car. How is my credit profile?

I have no plans to apply until I am over 700. My scores are low because my balances are too high. They are way high. I got sucked into zero interest offers.

25 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $47,148 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - orig. $20,617, paid/closed
Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, cur. $370
Equifax - 729
TransUnion - 740
Experian - 752
Message 6 of 39
Highlighted
Frequent Contributor

Re: I really need a new car. How is my credit profile?

Ask for some CLI to help soften the utilization and improve your scores. I get sucked into 0% offers too but you need to make sure it doesnt impact your ability to seek financing before those 0% terms are up.

Starting Score: 475
Current Score: 649
Goal Score: 690


Take the myFICO Fitness Challenge
Message 7 of 39
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Regular Contributor

Re: I really need a new car. How is my credit profile?

Those credit simulators aren’t always accurate, technically anything under 20% util per card won’t effect your credit score. Your income can be a factor as well depending on your debt-to-income ratio. Good Luck!




EX: 694 (F8)(7inq) | TU: 691 (VS3)(5inq) | EQ: 699 (VS3)(5inq)
BK Ch 7 Discharged 2015 | x1 Paid collection | x1 30 day late on file
9% Utilization | AAoA: 2yrs | Updated: *UPDATING*
Message 8 of 39
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New Contributor

Re: I really need a new car. How is my credit profile?

I don't have under 20% utilization, so getting there would be a huge step in the right direction.

25 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $47,148 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - orig. $20,617, paid/closed
Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, cur. $370
Equifax - 729
TransUnion - 740
Experian - 752
Message 9 of 39
Highlighted
Frequent Contributor

Re: I really need a new car. How is my credit profile?

20% utilization isn't what you should be shooting for, > 8.99% is.  Even better, AZEO would put you at 1%.  What is your utilization now?

 

Also, don't underestimate the impact of that 30 day late.  It's barely over a year old which means it's dinging your score a good 60+ points. 

 

As the poster above said, the score simulators are worthless.  

 

You need to gain more than 100 points in order to be tier one, and that's no mean feat.  At least not quickly.  The best way to do that is to employ AZEO and get that 30 day late goodwilled.  Meanwhile, you can pad your utilization by soft pulling your way to higher limits and paying down your debt.

 

 

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EX 780 TU 806 EQ 810

Message 10 of 39
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