Question about Auto Loan and Credit Score

[Anonymous]

Will a credit score of 650 make much difference over a score of 634 when it comes to obtaining an auto loan? I’m trying to decide whether to pay $1000 on my care credit to lower my credit card usage rate or put that money toward the down payment instead.

[Anonymous]

I would say it's lender-specific.  If the lender in question has some sort of tiers where (say) 640 is a threshold for the next best rate, sure in that example the 650 would be better than the 634.  You'd really have to talk to the lender.  Are you doing everything you can to maximize your score prior to apping (like AZEO)?

[Anonymous]

Thank you. Yes, I started rebuilding my credit this year. I was up to about 675 until recently when I had to charge dental work. What is AZEO?

[Anonymous]

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@Anonymous wrote:
Thank you. Yes, I started rebuilding my credit this year. I was up to about 675 until recently when I had to charge dental work. What is AZEO?

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AZEO = All Zero Except One

Have 1 of your credit cards report a balance and the rest of your cards reporting 0.

[RonM21]

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@Anonymous wrote:

I would say it's lender-specific.  If the lender in question has some sort of tiers where (say) 640 is a threshold for the next best rate, sure in that example the 650 would be better than the 634.  You'd really have to talk to the lender.  Are you doing everything you can to maximize your score prior to apping (like AZEO)?

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I agree with BBS.  Each lender has their own way of doing things and may weigh different scores on different scales of imprtance to them.  Maximizing your score from the utilization end is a good way to gain some points in a short period of time (AZEO).

[Anonymous]

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@Anonymous wrote:
Thank you. Yes, I started rebuilding my credit this year. I was up to about 675 until recently when I had to charge dental work. What is AZEO?

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Where are you getting your score(s) from?

When you charged the dental work, what was your utilization at prior to it and what was it post-balance update after the charge?

To figure utilization, take your balance on the card and divide it by the limit.  To determine overall utilization, add up all the balances on all of your cards and divide that by the sum of all your limits.  It would be good to know here your before/after utilization to try and determine how much of an opportunity (in terms of FICO points) you have related to the Amounts Owed sector of the FICO pie.

[Anonymous]

I was at 0% utilization before I charged the dental work and now I’m at 46% utilization.

[Anonymous]

Money down is what the dealership is going to tell you which is always great as each $1k will lower your monthly note. Depends on what banks they use depending on dealership. They won't even try and go through the auto manus financing, they'll do the usual Cap Auto Finance, Chase, etc with Ally or some other lower tier lender thrown in. Money down also looks good to the lender as well, also if you have a trade in that will help.  When I bought my '16 Highlander I had 650-680 across the big 3. But I also was reporting an income of $90k and was with Cap One Auto already.  So you're milage may vary.