Will I Qualify? Carrying 95% on CC, Self Empl.....help!

[steele]

Hey all,

Hub had two major hospital stays last year - used CC to float the biz. We are finally back in business w/ last 3 months combined biz brought in 20K. My Volvo Lease is up in 4 weeks.  

I brought in 1K per month to add.

Here is the breakdown:

AAOA - oldest 18 years - average 6 years / 7 mo 

Experian Fico 8 - non auto - 697

** Have $46K in CC debt. Revolving Credit Usage

98% (

Income: ??? 7K -ish per last 3 months - self-employed unless I use payroll and pay myself through biz

Lenght of Employment: 10 years ( 30 years of empl history)

Previous Loan Experience: Excellent - paid off 3 cars in my life. 1 lease. Soon to end 2nd lease.

Debt-to-Income (DTI): 40% ( might be 37%)

Year of Car: 2017 or 18 ( Camry? Honda? VW) 

Miles: 50

Purchase/Refinance: Lease?? Or Finance whichever will be easiest. ( Will deduct miles from taxes) 

Requested loan term (XX Months): lease or 72 months ( need a low payment to pay down debt.)

Down payment amount: 500

Co-borrower/Co-Signer: Hubs score is 600 will it help? Still owes 3K on Camry.

Other: past 10 years- never was late, never missed a payment. Good history of paying on time and paying off cars. 

? Is Fico Non Auto lower than an Auto fico pull? 

My credit is frozen and need to unfreeze Equifax. Lost my pin. oye

Will the high credit utilization cause concern and ask for proof of employment/income? 

[blunderer]

I'm not sure which route you were planning to go as far as whethere or not you were going to apply for the loan/lease through a CU/Bank but I would suggest applying with a dealership since they base a large portion of their decision on how well you've done with car loans in the past.  They may or may not ask for POI.  Since the dealers typically use the Auto enhanced score your scores may come back at top tier and not require POI.  They may ask about the high cc usage but it's been my experience once they see a decent credit score they're not that concerned about high usage as long as it's being paid on time. Also with dealers you have the option of lease or finance depending on which will work out best for you.  While a CU may offer lowere rates most don't offer financing for leased vehicles. 

I definitely suggest when you start narrowing down who you will apply with don't lay all your cards on the table right up front.  Definitely if they ask about the high usage be honest with them but when dealing with dealerships if they even sniff desperation some become less then honest with your options.  Once they run your credit ask them what score they came back with.  If it's higher than your Fico score you know you're good to go.

Hopefully someone more experienced will also chime in. 

Good luck.

[Anonymous]

Checking with Cap 1 to see if prequalified might put your mind at ease. If the answer is affirmative, now a baseline of creditworthiness has been established. Good luck.