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Past Auto Loan Default.

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New Contributor

Past Auto Loan Default.

To the FICO experts or anyone who've worked in auto financing, I have a few big questions, as I'm about to finance a new vehicle:
1. Does your current auto payments have more or less effect compare to past negative payments? I've had my current auto loan since Sept.2015 and NEVER LATE. However, I have had a CO on an auto loan last registered March 2018; I was a co-signer on that CO. How does that affect my current chances of getting approved for a new auto loan. Myfico is showing all but one auto-enhance score well north of 640. EQ: 670 TU:688 EXP. 609 (lol). My income: PTI10250 per month.
THANKS.
Message 1 of 7
6 REPLIES 6
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Super Contributor

Re: Past Auto Loan Default.

You can certainly get approved with those scores... you may not get the best rate, but you can certainly get an approval.

05/29/20 Mortgage scores: EX2 718, EQ5 696, TU4 no idea.
06/01/20 Fico 8: EX 707, EQ 709, TU 737.
06/03/20 Fico 9: EX 706, EQ 697, TU no idea...

Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 2 of 7
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New Contributor

Re: Past Auto Loan Default.

Thanks. I'll try in April.
Message 3 of 7
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Frequent Contributor

Re: Past Auto Loan Default.

The charge off will count as recent serious derogatory plus their is probably late/ missed payments on the auto loan account.When you apply for a new auto loan they will use an auto enhanced credit score that may not be a Fico score.Which means any negative information on a past auto loan account will count more within their credit score model  and will affect your credit score more than say if applied as an example for a credit card. They will use a credit card enhanced credit score model,I hope this helps. 

Message 4 of 7
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New Contributor

Re: Past Auto Loan Default.

So even though it shows as a CO, it was paid and showing"current" on my credit. I hope that helps.
Message 5 of 7
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Established Contributor

Re: Past Auto Loan Default.

I have a couple of 30-day late payments on a Toyota Financial loan back in 2014 and 2012. I'm sure this caused my FICO Auto-enhanced scores to drop, but not my much. As with other derogatories, they have less and less impact on scores as they age. And this certainly didn't affect my ability to get approved for the best rates this winter. Good luck!

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New Contributor

Re: Past Auto Loan Default.

Thanks Ridge.
Message 7 of 7
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