Thanks for all the information I have found here. Very interesting reading and enlightening.
I would like some opinions regarding my situation seeking a first-time car loan. My credit history averages 1.8 months. In 1992, I went to live in Europe and returned in 2001 to find I had a couple of errors in my credit profile. So I mistakenly had the three CRAs wipe my report clean by asking for the removal of everything over 7 years. I had blank reports. I had a car financed in the early 80s through Chrysler, but in 2013 there is no available record of that finance. Living in NYC, I went without a car. Now, I’m in LA. I earn $80,000. My scores are TU 620, EQ 612 and EX 686 as shown in my purchase of service from each of the CRAs. I have no late payments. My credit card appearing on credit profile and limits are Capital One (formerly Orchard) $2,000, Bank of America $5000, Macy’s $800, HSBC credit line $600 -- nothing else on credit profile. My utilization on cards is about 50%. Just joined my local credit union in Burbank, CA.
I want to buy a new basic car, Honda Accord at $25,000, as a first-time buyer. Any ideas on possible approval or thoughts in general?
With your income, you will get approved. With your scores, you will have a fairly high rate, which you can refi in a year. Getting your untilization down to 10% or so would help your scores quite a bit...just dropped mine from 55% to 15%, and shot up 37 points in a few weeks. If your CU says no, go to a dealer and let them find a bank for you.
Sure there isn't anything negative on your reports? Those scores seem really low even with 50% utilization. You'll certainly get approved but if you can get those scores up the rate will be dramatically lower.
boomhower, thanks for the reply. There is nothing else in my credit profile. A knowledgeable suggested that is actually the problem -- a short credit history and few accounts. Will try to get utilization down. Just signed up for myFICO. Score is 608!!! citing the similar reasons.