Looking to get new auto loan.

[Xblindsiderockx]

So, I have a closed account that had a lot of late pays on it. They did not send it to collections but they decided to do an internal recovery. I have been making the minimum payments on it and I am current. I owe $2100 dollars on it and I called today to get a payoff amount. I am going to be in the market for a brand new f-250 truck this fall so I want to get everything in line. My fico auto scores are around 690. Wil paying this completely off increase my scores? I don’t think it will hurt it as it’s been closed for about 2 years. And what do you think of approval odds on a $70000 dollar truck? I make about $90000 a year. My monthly debts are currently $1998 and that’s including my $540 suv payment that will be traded in.

[donkort]

I would say you're in Tier 2, probably, for most auto financers.   The interest rate might be pretty high.

How recent are the lates?

It would be nice if you could, somehow, get a "pay to delete" on this when you pay the $2,100; that would certainly increase your score.

There will be a pretty hefty payment on this truck.  If your truck note is $500 more your present note, your DTI would be about 33% or so, since you make $7,500 a month gross.

I don't know if getting a truck is easier than getting a car.

[Xblindsiderockx]

My wife also makes about $57,000 even tho she will not be on the loan, we do have a shared bank account that she has regular pay checks deposited in for the past 3 years. I do not know how the lender would look at this as it is deposited into a joint account. We make about 14,750 gross per month. We do keep separate finances as we use have to many fights over money. As far as the pay for delete, they forwarded it on to someone else to review the matter.

[donkort]

So you called them, and offered the $2,100 if they would delete the account with the lates?

If they do agree to this, ask them for email documentation that they will do this.  Ask them in a nice way.

The auto financer will probably only look at your income----unless your wife is part of the loan. 

[Xblindsiderockx]

I asked if they would pay for delete and he stated he does not believe they would do this but they would put paid in full on the account. He forwarded this on to his supervisor. 

we have always wanted a truck and I feel we are in a position to do so. We would have a combined 30% dti with the new truck payment around $1100. Just didn't know what financing I would be getting approved for.

[donkort]

I forgot to ask:  How old are the lates?

[Xblindsiderockx]

Two years.

[donkort]

I'm glad the account wasn't put in collections.

It would look good to have the account fully paid off, though I don't believe it would positively affect your score should it not get deleted.  It would also lower your DTI.  690 is not a particularly bad score. You should look at all the auto scores available to you.

Good luck.  I hope you get a decent interest rate.  

[Creditplz]

Most important thing in this scenario is do you have any equivalent auto/installment to this?. $1000/mo payments? Home loan? 

[Xblindsiderockx]

Yes. Our mortgage is $1780. Mortgage is in mine and my wife's name. We have a total combined income of $150000