Should I wait to apply?

[rnmedic85]

I am considering applying for a new car loan in the near future. There are a few changes that will be coming to my credit report within the next month. My UTI% will go from around 30% to 17% and a 3 year old collection(only ca) will be removed by the creditor. My question is would waiting for the changes to happen improve my odds of approval or lower my rate? My current scores are below. Do any lenders actually use auto FICO 2, since that is my highest score?

Requesting 50k loan

UTI: 30%

DTI: 17%

Income: 100k

1 CA (3yrs), 1 paid CO (3yrs), 4 inq(2 yr), 2 60d lates (3yrs), 1 90d late (4yr)

FICO 8 EQ:662 TU:661 EX:671

FICO 9 EQ:645 TU:635 EX: 618

AUTO FICO 5EQ:677 4TU:698 2EX:719

AUTO FICO 8 EQ:678 TU:683 EX:683

AUTO FICO 9 EQ:660 TU:654  EX:642

Mortgage Scores 5EQ:658 4TU:675 2EQ:669

[DebtStinks]

I say definitely wait, if possible. If your current scores were high 7's it wouldn't make much, if any, difference. 

I wouldn't be surprised to see some of your scores jump over 700 with a collection being removed and utilization going down to 17%.

With regard to a specific version of an auto enhanced score, yes there are lenders that use it. Some lenders (mainly CU's) will let a dealer "bureau shop" for a better rate in this case if they have a higher score on an alternate bureau that the CU didn't pull when submitting your application.

Best of luck!

[rnmedic85]

Yeah that's what I was thinking too. Thank You!

[dunn2500]

there are lenders that still use FICO 2, just have to find out who they are which shouldnt be that hard.......but obviously higher the score better interest rate......CU will probably beat any bank with those scores

[Credit4Growth]

Searching for lenders using Fico 2 would be smart but waiting for the updates to populate your reports is a smarter decision to be made.

GL2U!

[rnmedic85]

Thanks for the replies! I was also wondering if I should pay off my current auto loan before applying for the new one. I have 4 payments, roughly 1200 total remaining on loan. I am not trading in this vehicle. From what I understand I could get a substantial score drop by paying off this loan as it's my only installment other than student loans. Would it be wise to payoff the car like a week before applying, that way my credit report won't have time to update? 

Thanks!

[dunn2500]

your score will probably drop a bit ( short term) and possibly not your auto scores, but how much depends .....