So my husband and I tried a couple days ago to trade my car in on a SUV. We picked out a used one that actually wasn't much more than my car was when I purchased it 3 years ago. I've been repairing my credit since I was divorced 3 years ago. When I initially purchased the car my credit score was 685 and capital one had pre-approved me for the car I had picked out. I went to the dealership thinking I might not be able to actually get it. I managed to get it with 6.6% interest rate thru Ally which I felt was ok considering my credit history (my former husband was terrible with money and maxed our credit cards out and we became delinquent on payments. Some were closed and I managed to pay 3 off, then before our divorce he again maxed them out)
the truck I had in our divorce had a $1000 a month payment through our bank so I had to get rid of it. Looking back I should have refinanced it. But live and learn.
Now since my remarriage we have 5 kids between us and wanted to get an SUV to accommodate.
My score was 670 on Experian. And the dealership told us we were preapproved. I asked about payments and they said they had to see my trade in person. So we drove 2 hours and they give us this sheet with estimates on financing at 12% with $1000 payments. I had told the one working with us we would not go over $750 no matter what. So I told her again. She said these are inky estimates until we run it thru financing. So I signed it and they ran it through. They didn't come back with any options Other than would need $5,000 down to "get close" we told them no thank you and walked out. When my alert came up on the bank they tried it was Sandtander. I looked them up before we walked out and read all about how terrible they are and fraudulent.
I just don't know what the best thing is to do. I know time is ticking on my credit score since they ran it. I have student loans because I am in grad school to become a nurse practitioner. So I know that hurts me. Credit cards are payed off. I have no other debt except the student loans and my car.
my spouse has worse credit than I do from when he was home from his first round in the military and then he rejoined and now he is a deputy sheriff so we weren't going to use his but they ran both to see. Our monthly income can support the payment fine.
And if you made it this far through all my rambling thank you!
You don't want all of your cards to report $0. You're taking a scoring penalty by doing that. You want 1 card to report $10 or so dollars to show use. Doing that could give you up to 30 points depending on your profile.
What pre-approvals have you ran? Did you try cap1 again? Do you belong to a credit union? Would you be against joining a credit union?
Have you tried selling your vehicle to vroom? Or seeing what they will offer you for the car. It doesn't cost anything to check. They'll use your VIN or vehicle tag in order to give you a price. The offers are solid as long as you are honest with the description of the vehicle. They normally beat the stealerships IME. From there you can take that money and use it towards your next vehicle without snow balling on trade ins.