Bigger down payment for new car? or payoff current loan.

[dwhatshappenin]

My credit scores are 602 - 550 - 510. My utilization is 118%. ( I think this mainly comes from one credit card. Limit is 100. balance is 1,700. i recently paid this off)

 

I have an open auto loan that still has $6,000 balance.

 

I have had 3 auto loans in my life. This current one is the only one that has ever had lates. it has 30-60-90 day lates. All 3 of them are from the last 3 months.

 

Im trying to get a new car now. ford explorer. cost around $38,000.

 

i have $10,000 saved for my new car.

 

Should I pay the current loan of and have less for a down payment.

 

Or pay my regular payments and have more of a down payment.

 

Would i be approved for this second auto loan?

[MarvBear]

On behalf of CreditBoards Admin, MarvBear would like to extend a sincere and warm welcome to the Automotive Forum. We have an Automotive FAQ (Frequently Asked Questions) section that should prove to be very helpful in your automotive knowledge quest.In the Reading and Resource Section of this forum, which is a read only forum, you can look up information regarding Sales Tax by State, Lemon Laws by State, along with a number of industry specific topics very relevant from the dealership's perspective.In the main section of this forum, there are two pinned topics both of which are read only topics. The first concerns Bank and Credit Union rates and tiers. You might find this useful in predicting an interest rate on your next vehicle purchase. The second is a general purpose credit application that you can use to get an idea if you might qualify for an automotive product loan based on an insider's perspective of the information you provide.You, as a consumer, have a unique advantage to "pick my brain"as I have been in the Automotive Industry since 1972. I will endeavor my utmost to give you up to the minute information and explain any insider workings you may question.Due to time constraints on my part, I may not always be available to answer your question right away. Don't be discouraged, this is a very busy board. If some extended time goes by without a reply, feel free to reply to your own post by typing the word *bump*. This will *bump* your post back up to the top of the forum where it is more easily seen.We make every effort to maintain a warm and friendly, and particularly non-judgmental attitude here on CreditBoards. If you find someone is discourteous to you, use the REPORT button located at the bottom of every post-that will ensure that either I or another moderator or Admin looks at the post and decides if it is against our TOS.Off-topic posts should go in the General Forum. And if you are a credit newbie, take a glance at our Newbies Section.Come get your new keys!HAPPY MOTORINGCB Admin: LKH, Pam, radi8, breezeCB Mods: cotterpin, CargoJon, CramitCCCA's, fla-tan, MarvBear, psp, pryan67, Forum Leads: TeeSharice, orangecrush, Four20Nik and Neen

[MarvBear]

Please post the credit app within this thread for review.

[dwhatshappenin]

Your Age? 52

 

Your Equifax Credit Score? 510

Your Experian Credit Score? 550

Your TransUnion Credit Score? 602

 

How many years have you been on file with Equifax? 22

How many years have you been on file with Experian? 22

How many years have you been on file with TransUnion? 22

 

YOUR PREVIOUS AUTOMOTIVE CREDIT HISTORY

 

Do you have an open auto loan? Yes

Will this open auto loan be a trade-in? No

How many late pays within the last 12 months on the currently open loan? 3

How many late pays within the last 13-24 months on the currently open loan? 0

Your current open auto loan is financed with? Toyota Financial

Your current open auto loan payment is? 313

Estimated amount you may be upside down in this vehicle? 0

Rate your payment history on this open auto loan from 1-10 (1=poor:10=Best) 7

 

 

YOUR REVOLVING CREDIT HISTORY

 

Total number of revolving account(s) you have? 12

Total percentage utilized overall? 118

How many of your revolving accounts are store cards? 3

How many of your revolving accounts are major credit cards? (i.e. Amex, MC, Visa) 9

How many of your revolving accounts are known subprime credit cards (i.e. Aspire, 1st Premier) 0

 

YOUR PERSONAL INFORMATION

 

How long at your current residence? 17 years

Do you Rent or have a Mortgage, or Live w/Relative or Other? mortgage

Your Monthly Rent or Mortgage payment? 433

How long have you held your current job? 13 years

Your total provable monthly gross income is? 1,700

Your provable monthly gross income is provable via what method? (i.e. computerized paycheck stub, or tax return, or bank statements) pay checks

 

Is there additional monthly income? What amount monthly?

Describe the source.

Is the additional monthly income provable?

Spousal income is not applicable.

 

YOUR DOWNPAYMENT

Please tell me your exact down payment in cash? (rebates and trade equity are not considered, please input a dollar value only.) 11,000

Does any credit repository contain any Public Record? no

If yes, please very briefly describe.

 

Does any credit repository contain any Collection Account(s)? no

If yes, please very briefly describe.

 

Please rate your overall creditworthiness on a scale of 1-10 (1=poor, 10= best)7

Please rate your Installment credit history on a scale of 1-10 (1=poor, 10=best) 8

Please rate your Revolving credit history on a scale of 1-10 (1=poor, 10=best) 6

 

New or Used vehicle you are considering: Please very briefly describe.

 

new ford explorer. price would be around 38,000

 

 

 

please let me know. should i pay off the current loan and have less of a down payment or not? i owe 6,000 on current loan

[MarvBear]

declined. Consumer does not qualify for 2nd auto loan.

[dwhatshappenin]

here's a new app for my second senerio

 

 

 

Your Age? 52

 

Your Equifax Credit Score? 510

Your Experian Credit Score? 550

Your TransUnion Credit Score? 602

 

How many years have you been on file with Equifax? 22

How many years have you been on file with Experian? 22

How many years have you been on file with TransUnion? 22

 

YOUR PREVIOUS AUTOMOTIVE CREDIT HISTORY

 

Do you have an open auto loan? no

Will this open auto loan be a trade-in? No

How many late pays within the last 12 months on the currently open loan?

How many late pays within the last 13-24 months on the currently open loan?

Your current open auto loan is financed with?

Your current open auto loan payment is?

Estimated amount you may be upside down in this vehicle?

Rate your payment history on this open auto loan from 1-10 (1=poor:10=Best)

 

 

YOUR REVOLVING CREDIT HISTORY

 

Total number of revolving account(s) you have? 12

Total percentage utilized overall? 118

How many of your revolving accounts are store cards? 3

How many of your revolving accounts are major credit cards? (i.e. Amex, MC, Visa) 9

How many of your revolving accounts are known subprime credit cards (i.e. Aspire, 1st Premier) 0

 

YOUR PERSONAL INFORMATION

 

How long at your current residence? 17 years

Do you Rent or have a Mortgage, or Live w/Relative or Other? mortgage

Your Monthly Rent or Mortgage payment? 433

How long have you held your current job? 13 years

Your total provable monthly gross income is? 1,700

Your provable monthly gross income is provable via what method? (i.e. computerized paycheck stub, or tax return, or bank statements) pay checks

 

Is there additional monthly income? What amount monthly?

Describe the source.

Is the additional monthly income provable?

Spousal income is not applicable.

 

YOUR DOWNPAYMENT

Please tell me your exact down payment in cash? (rebates and trade equity are not considered, please input a dollar value only.) 4,000

Does any credit repository contain any Public Record? no

If yes, please very briefly describe.

 

Does any credit repository contain any Collection Account(s)? no

If yes, please very briefly describe.

 

Please rate your overall creditworthiness on a scale of 1-10 (1=poor, 10= best)7

Please rate your Installment credit history on a scale of 1-10 (1=poor, 10=best) 8

Please rate your Revolving credit history on a scale of 1-10 (1=poor, 10=best) 6

 

New or Used vehicle you are considering: Please very briefly describe.

 

new ford explorer. price would be around 38,000

[MarvBear]

Declined. NSF income to support amount requested.

[dwhatshappenin]

So whats my best bet to go about getting this?

[MarvBear]

at a monthly gross income of $1700, I'd be impressed were you to be approved for an amount that would generate a payment of much over $300.00.

 

Your income and scores are prohibiting factors.

 

So, enough money down to simply make the payment fit within lender guidlines.

[dwhatshappenin]

Ok, what if i add my sister as a co-signer her scores are 491 -502 -472 but her income is 4,000 monthly.

[MarvBear]

You could always add a qualified co-applicant to the loan. Some lenders will consider co-applicant who do not reside at the same address some will not.

 

Then both applicants files will be merged and evaluated.

[Daddy]

OP, you need to seriously think about this. You are in your 50s. I personally do not think it would be in your best interest to go out and put your "retirement" in jeopardy by making such a LARGE purchase. I mean, most of your income would be going to a car payment. One misstep, and it could be a disaster. Besides, you'd probably lose 70% of that $10k down payment in depreciation in the 1st year. Also, add in the astronomical gas prices, you'd be potentially committing financial suicide. So personally, I would just hold off on that.

 

If you just NEED to have an SUV, try for like a 2005-2006 Explorer. At least then, you would probably save about $10k off the bat, because most of the depreciation may have already taken place.

 

One more problem you may run into is that with scores so low, no matter what the down payment is, it will be VERY difficult for you to qualify for ANY rate incentives, EVEN if you did get approved for a loan. So you may get like a 19% interest rate.

 

Anyway, just think it through. Good luck whatever you decide.

[dwhatshappenin]

that wasn't all my money, just the money i've saved for a car. but after daddy's response it did make me think because i am buying a house now. i should really be saving so here's my new app.

 

 

Your Age? 52

 

Your Equifax Credit Score? 510

Your Experian Credit Score? 550

Your TransUnion Credit Score? 602

 

How many years have you been on file with Equifax? 22

How many years have you been on file with Experian? 22

How many years have you been on file with TransUnion? 22

 

YOUR PREVIOUS AUTOMOTIVE CREDIT HISTORY

 

Do you have an open auto loan? Yes

Will this open auto loan be a trade-in? No

How many late pays within the last 12 months on the currently open loan? 3

How many late pays within the last 13-24 months on the currently open loan? 0

Your current open auto loan is financed with? Toyota Financial

Your current open auto loan payment is? 313

Estimated amount you may be upside down in this vehicle? 0

Rate your payment history on this open auto loan from 1-10 (1=poor:10=Best) 7

 

 

YOUR REVOLVING CREDIT HISTORY

 

Total number of revolving account(s) you have? 12

Total percentage utilized overall? 118

How many of your revolving accounts are store cards? 3

How many of your revolving accounts are major credit cards? (i.e. Amex, MC, Visa) 9

How many of your revolving accounts are known subprime credit cards (i.e. Aspire, 1st Premier) 0

 

YOUR PERSONAL INFORMATION

 

How long at your current residence? 17 years

Do you Rent or have a Mortgage, or Live w/Relative or Other? mortgage

Your Monthly Rent or Mortgage payment? 433

How long have you held your current job? 13 years

Your total provable monthly gross income is? 1,700

Your provable monthly gross income is provable via what method? (i.e. computerized paycheck stub, or tax return, or bank statements) pay checks

 

Is there additional monthly income? What amount monthly?

Describe the source.

Is the additional monthly income provable?

Spousal income is not applicable.

 

YOUR DOWNPAYMENT

Please tell me your exact down payment in cash? (rebates and trade equity are not considered, please input a dollar value only.) 7,000

Does any credit repository contain any Public Record? no

If yes, please very briefly describe.

 

Does any credit repository contain any Collection Account(s)? no

If yes, please very briefly describe.

 

Please rate your overall creditworthiness on a scale of 1-10 (1=poor, 10= best)7

Please rate your Installment credit history on a scale of 1-10 (1=poor, 10=best) 8

Please rate your Revolving credit history on a scale of 1-10 (1=poor, 10=best) 6

 

New or Used vehicle you are considering: Please very briefly describe.

 

chevy colbat. price after options 15,858. not including employee discount i have

[Daddy]

chevy colbat. price after options 15,858. not including employee discount i have

 

 

That's what I'm talking about!!!

[MarvBear]

consumer does not qualify for multiple auto loans.