Mercedes financial

[Anonymous]

 I went through a tough time financially 2011-2014 when my wife lost her job and I was injured and unable to work ( I am self employed). This resulted in a late mortgage payments, late car payments and default on a credit card..

I recovered and my wife got a great new job and things have been great financially for 4 years.

I haven't used any credit since 2013, so in order to rebuild my credit I got 2 secured capital one cards a couple of months ago. My 4k/mo mortgage payment has been current since 04/14 . i have a paid auto loan that had some late pays and I have 2 collections that are due to fall off my credit report in 02/2018 amd 04/2018

My TU score is dismal- 600...

Doe's anyone know what I need to do to get approved for a 25K loan with Mercedes? The van I want to buy is 45K and I will put $20,000 down. 

Thanks!!!

[Anonymous]

Welcome to the board and congrats on catching up on the payments.  Based on your score and credit profile, you will need a co- signer unfortunately although you have a large down payment.

[sccredit]

I would bet if you went to the dealer they would get you approved with 45% down.

[Appleman]

You may want to pay for the 3B report here on myFICO. It will show you your Auto FICO scores across all 3 bureaus.

Also, plug in your information to the Capital One Auto Navigator (only a Soft pull) and see if they pre-qualifu you.

Based on the large down payment my guess is that you can be approved. If you can wait for those collections to drop off even better.

[Anonymous]

Thanks, I actually just recheked my credit score with TU (which is who Mercedes will pull) and my score is actually 640. 

Will my score jump up when the 2 baddies fall off? 

Also, one is a collection account ... When does the 7 year reporting period start? Because the account with  original creditor , think it was citibank, has already fallen off and I think this accoint is older than 7 years. 

Are there any tricks that will get me another 50 points in a few months? Another credit card? Dispute the collection account? It is portfolio recover service. Since it is scheduled to fall off in 7 months or so, is it better to just leave it alone? 

[Anonymous]

Thanks!

[Appleman]

Also remember that you don't have to use Mercedes financing. I am sure the Mercedes dealership has multiple lenders.

I am honestly not sure if another credit card will help you right now. You may want to post in the rebuilders section to see if they have any advice or knowledge related to the collection questions.

50 points in a few months is probably not realistic. If you had 85% credit card utilization and dropped that to 1% utilization with an otherwise great profile you would likely see 50 points.

Sounds as though the collections are what is holding your score down and that is often a function of time before they improve.