@Staralchemist wrote:I looked around some more and saw this so wanted to add for easier viewing.
Need to purchase by June 2023.
Credit Score: EQ 591| TU 622 | EX 594 (AUTO SCORES: EQ 624 | TU 642 | EX 622)
AAoA: 7yrs 8months
# of positive trade lines:
- 2 Open accounts now current (0% & 80% util) - previous late pays: 10 combined, 4 months since the last late payment.
- Authorized user of 2 other cards - never late, high utilization, but not counted in my utilization
- 8 student loans - never late, currently on hold (SL holds)
# of negative trade lines:
- 3 charge-offs with a balance: $20,441, $20K, and $603 that update monthly as I make my payments on them
- 3 old paid charge-offs $0
Income: $180K + bonus
Length of Employment: 6 months (by the time I apply)
Previous Loan Experience: Paid off auto loan 2020, never late
Debt-to-Income (DTI): 15% gross, 20% net
Year of Car: 2023
Miles: 0
Purchase/Refinance: Purchase
Requested loan term (XX Months): 72 most likely
Down payment amount: 20%
Co-borrower/Co-Signer: No
Other:
I'm rebuilding after having lost my job and family loss during the pandemic shutdowns. I sold my paid off car in 2021 to make ends meet. Fast forward, I recently started a job making almost $200K a year that was initially work from home. Now we're in return-to-office (RTO) mode. We only have one car and the conflicts of schedule are starting to arise with June being the point I will need a vehicle as my spouse is also being called back into the office.
Because of the hit my credit took with old collections and recent late pays (prior to job start), my FICO scores are 614/622/612. The Vantage scores are worse, but my Auto FICO 8 is better - TU 644 - since I paid my previous auto loan on time the whole time I had it. I'm working to pay down the utilization, but noticed the following:
* 2 NFCU charge-off cards are counting in my utilization AND NFCU reports each month for each payment I make. Utilization is 93% and 94% on those. Balances on each are just above $20K, total $40K combined. I won't be able to pay this in time for June.
I sent a goodwill letter to Capital One asking for the removal of the late payments since I'm now current. Balance paid on one card, the other 82%. They said no citing some FCRA rule, yet I know they have done this for other customers and still do it. I'm tempted to contact the FCRA or whoever to let them know that Capital One doesn't treat their customers the same, but that's just me being annoyed more than anything.
At this point other than making payments on time and continuing to pay extra what I can on the balances, I don't know what else to do. I still have to save for a down payment as I need to at least look good in other areas (income is great, credit isn't) in order for someone to approve me to be in a car.
Any thoughts? I've spoken to a few credit unions on general guidelines. The CU that had my previous auto loan says 640 regular TU (not FICO/Auto FICO) even though she says she could get me approved another way - don't know what that means other than a high interest rate.
Again, any advice, thoughts, or general encouragement appreciated. Thank you.
Utility doesn't make as a dramatic swing in scores with unclean reports. Time since last derog is what will make the difference. You need to get some age behind those lates. That said.... There are a few lenders that would try to approve terms. Believe it or not, Capital One Auto Finance is VERY forgiving, even with prior negative history WITH Capital One. Try to prequalify with Auto Navigator.. It's a soft pull. You could even try now just to see what they do.
Santander and Ally Financial are two other lenders that also come to mind. Rates won't be great but the lower the amount finance, the lower the impact of higher rates will make on your overall payback. Ally is more lenient with amount requested. Santander is VERY down payment focused. Both could have very high rates. All three of these lenders all use simple interest so you will be paying higher rates only for the payments you make during the term if you refi later. Early payoffs will waive any unearned interest and there shouldn't be any pre-payment penalty.
Your down payment of 20% (or possibly a little more) will definitely make the application more appealing as well as the provable $200K of income. Just don't go crazy with your choice of transportation that takes you to the place that makes you all that money. If a perspective lender sees responsibility in your application (meaning you are just buying what you need, not want), they're likely to overlook other things in your profile. If you continue to keep your focus on this purchase as a neccessity and not a desire, you should be able to get an approval.
@Staralchemist wrote:Thank you for the response @fury1995!
I forgot to mention that I tried Cap's Auto Navigator before one of my balances updated to being current on my credit report, so I was denied based on not having that single current account. That was 3-4 weeks ago. I read somewhere that Capital One's system remembers the information on a soft pull for 60 days. Is that accurate?
Funny enough, my down payment sits currently in an Ally HYSA. However, it looks like they don't do pre-approvals. They only work through the dealer. I won't know if I was approved until the dealer ran the information. Just called in to verify it.
Not sure about Santander as I have never heard good things about them.
I'm not sure about the 60 day memory for CaOne Navigator. I do think it doesn't matter how many times you try. Ally subprime usually is indirect (through a dealer). Santander used to be CDJR dealers main bank. They're a fairly large bank.
@Staralchemist wrote:
@fury1995 wrote:
@Staralchemist wrote:Thank you for the response @fury1995!
I forgot to mention that I tried Cap's Auto Navigator before one of my balances updated to being current on my credit report, so I was denied based on not having that single current account. That was 3-4 weeks ago. I read somewhere that Capital One's system remembers the information on a soft pull for 60 days. Is that accurate?
Funny enough, my down payment sits currently in an Ally HYSA. However, it looks like they don't do pre-approvals. They only work through the dealer. I won't know if I was approved until the dealer ran the information. Just called in to verify it.
Not sure about Santander as I have never heard good things about them.
I'm not sure about the 60 day memory for CaOne Navigator. I do think it doesn't matter how many times you try. Ally subprime usually is indirect (through a dealer). Santander used to be CDJR dealers main bank. They're a fairly large bank.
Ok, I'll try CapOne in the next month or 2 after additional payoffs get reported and I see the FICO scores move upwards more. I just learned that I can hold off until August/September on purchasing so more time to pay down & save up.
I'm trying to focus on what makes the most sense in improving my score. Looks like I will need to tackle the 2 NFCU CO as I didn't realize before they were being counted in my utilization and as derogatories. I thought the 2 cards where I'm an authorized user may have been hurting me because of their high utilization, but FICO isn't counting them. Good thing I investigated deeper.
The chargeoffs may be having the largest effect on your scores via your utilization because (I believe that's what you're saying) the accumulative chargoffs show balances against each line that has zero available credit... so that factors into your overall utilization of all available credit.
That said, utilization needs to get down but.. time since last derog is what makes the most immediate impact on your scores in your situation.
There is ONE caviat. You have history of a paid auto / never late. That has far more impact than anything else on your credit for auto lending. That shows historically, you make auto loan payments a priority. Indirect lenders see value in that and it makes a case for why in this circumstance for of extension of auto credit, you are less of a risk... combined with stable employment (income), equity (down payment) and justification for a second auto. Just make sure you're requesting an amount that is reasonable based on your previous loan amount.
... and the values seem to have rebounded too. For kicks I looked up my '22 Bronco and KBB is showing it $2k higher than the MSRP I paid in October.
I love it too much to get rid of it but it's interesting nonetheless.
