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Will I qualify?

mamahearts
Frequent Contributor

Will I qualify?

Score 630
AAoA 8 y 9 m
Positives No late payments on 3 credit card acts and student loans
Negatives 3 collection accts 2 medical, 1 old phone bill from 2003
Income 24000
Employment length 2 yrs but have been in same industry for 13 with no time unemployed
No prev loan always paid cash for old high mile cars
DTI 33% including my credit cards, student loans and half of mortgage
Year 2014 Ford Focus
Mileage 31799
Price 9495 before down pyt of $500 and/or trade in
Term 60 months
Down pyt 500 and/or trade in
No cosigner available

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 1 of 5
4 REPLIES 4
Appleman
Valued Contributor

Re: Will I qualify?

I would recommend that you check out the Capital One Auto Navigator. They will do a soft pull to pre-qualify you for an auto loan.

If they qualify you, it would likely be worth it to check out a credit union.

 

My guess is that you will qualify. With your income, the lenders are looking with working with $800 a month for all of your financial obligations to remain below a DTI of 40%. If you are already at 33% that leaves only 7% or so for an auto loan or a payment of around $140 a month.

 

As an example: $10,000 loan at 5% for 72 months is $161.05. What is your current utilization on your credit cards?

Message 2 of 5
mamahearts
Frequent Contributor

Re: Will I qualify?

Sorry I just saw that you replied.

I included half the mortgage which is in spouse's name in my DTI.  Should I count that?

I have 3 credit cards with no late payments.  I have student loans broken out to 4 different loan accounts with no lates.

But 2 out of my cards have high UTI.  90% or so. Will that preclude me from getting an auto loan?

I'm planning to apply in October so I'll have some time to bring down that UTI but was wondering what % would still allow me to qualify.

I have a trade in and a down payment.

 

 

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 3 of 5
Appleman
Valued Contributor

Re: Will I qualify?

I am honestly not sure on the mortgage as it will appear on your spouse's credit report and not yours. That could work in your favor.

 

I don't think there is a Utilization % that will get you qualified but the better the score and credit file, the better the terms you will get.

 

I too had a few cards that were maxxed in my past and based on my experience paying those balances down and the experiences of others, there seems to be improvements at certain points.

90% - Bad maxxed according to score

70%, 50%, 30% and below 10%   - I saw score improvement.

 

So, I do not think 90% will preclude you from an auto loan but there will be more choices if you get below 50% which should also improve your DTI.

Message 4 of 5
mamahearts
Frequent Contributor

Re: Will I qualify?

Thanks! I'm going to bring down my uti between now and when I'm ready to apply in October.  I'm going to apply through Cap 1 Nav.  I don't belong to a CU but I heard they have good terms usually for car loans so that is something I might look into as well. 

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 5 of 5
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