Need some feedback --> What are my chances on this approval :)

[Anonymous]

Hi guys,

I appreciate you taking the time reading my post and providing feedback. Thank you thank you!

Here's my situation:

I'm looking into purchasing (finance) my first vehicle from a Ford dealer. I'm thinking about purchasing next month. The vehicle is about 37-39K (Ford F-150). It will be a pre owned vehicle year 2012/13. 

I only have about 1 year and 6 months of credit history ( I know.. bummer) Never been late, no Bankruptcy, nada. I'm also 28 yrs old if it matters. Credit Karma say's i'm currently at 692 fico 

I have 4 credit cards:

1. 3500 limit / 1600 used
2. 2,000 limit / 400 used
3. 1,200 limit / 500 used
4. 1,100 limit / 300 used
5. 6,000 limit / 0% used 

If it will increase my chances of approval and/or lower APR, I can drop 8k down payment. I also make about 50K a year (1 year job history)

What do you guys think?       Worth a shot?  Tips or Suggestions? 

[Remember0]

What's your monthly rent/mortgage? And what's the minimum monthly aggregate payments across all these cards?

As long as rent isn't too high, I think you'll be approved as is right now for probably <5-6%! But if you can pay down some of those cards and let them report a 0 balance, your score will go up. If we can get you comfortably above 675+ on EQ (NOT creditkarma, that score is useless...I mean a score from like here), you'd qualify for 1.24% for 65 months with DCU.

In fact, to maximize FICO, you should pay off the 300, 400, and 500 balances. This will get you to ~13% util. THen sending ~300 to the 1600 if possible will maximize your FICO to I'm guessing low to mid 700s if you have no baddies (late pmts, judgments, liens, charge offs).

In terms of lowering APR, I think using ~1.5k of that dp to pay off the cars AND let them report 0 balance to the credit bureaus (bureaus updated shortly after your next statement with a 0 balance comes out) will help far more with lowering APR. You'll be approved with no down payment regardless even now.

[SamsungHDTV]

I think you have a decent shot. Overall you're solid.

Utilzation - 20% which is not too bad, but 10% is ideal.

Credit length - 1.5 years is not bad, enough to qualify for auto loans.

LTV will be fine because you're big down payment

I'm assuming your DTI is fine. If you make 50k, your minimums on credit cards shouldn't be that high.

Here is one part that is working against you. You dont have previous auto loan, some finance companies wont want to finance that much to a first time car buyer. Some may, some wont. If you were financing less, it would be a non-issue.

My suggestions:

1. Use your 8K available and payoff most of the credit cards. If you want a number say 2500 towards them. This will help most on increasing approval and/or lower apr. But you have to wait until your reports update.

2. Use rest towards down payment which will also help with approval and/or lower apr.

Bottom line, worth a shot. If I were you, I would do the suggested above and apply at 3-5 different places including credit unions. Hope this helps.

[Anonymous]

Thank you guys.... I decided to wait an extra month and pay down CC's ....