Thin file, CA lurking. How to get into newer car?

[seetheworld1]

Hi, guys,

I’m currently in a 2006 Honda and I’m looking to upgrade. It’s worth about $9K KBB book value (if private sale) and I still owe $5K on it. My credit file is thin. My EX FAKO is 697, one 6 year old paid civil judgment, one secured credit card reporting for the last two months, one potential medical collection and my car loan of 2.5 years. I got it when I had no credit score whatsoever, so the rate is a deadly 17 percent. I have a CA lurking regarding a medical collection that was on my report (but luckily it was removed in dispute) that will be permanently barred from re-reporting in three months when the SOL is up. Several questions: Should I wait the full three months to start applying for loans, jic the CA sees the activity and decides to poison? Do you think I can get a decent rate on a like-new used car loan with this credit profile? (The Honda loan is with Chase and it’s been paid on time. I asked my bank whether they would consider refinancing but I guess I don't owe enough on it to make it worthwhile for them.) And how do people usually handle cars that they currently owe on when they want to buy new one? If I do a trade, does the dealer of the future car buy it from me so I could pay off the current loan? Sorry, I’m relatively inexperienced at this so all suggestions are greatly appreciated! Thanks.

[MarvBear]

When you trade a vehicle that has a payoff, you just need to make sure you get enough money for it that you find acceptable. The payoff is the payoff, whatever that number may be, and the dealer is responsible for remitting payoff after you trade the vehicle.

 

I'm not clear as to the question you pose regarding this potential collection. From my way of looking at this sort of thing, you either have a collection account on your credit file(s) or you don't. I just don't understand what you are asking.

[seetheworld1]

When you trade a vehicle that has a payoff, you just need to make sure you get enough money for it that you find acceptable. The payoff is the payoff, whatever that number may be, and the dealer is responsible for remitting payoff after you trade the vehicle.

 

I'm not clear as to the question you pose regarding this potential collection. From my way of looking at this sort of thing, you either have a collection account on your credit file(s) or you don't. I just don't understand what you are asking.

Okay, sorry I wasn't clearer. Regarding the collection, it's not on my report any longer but there are still three months left until it's out of SOL so I'm afraid that if I start applying for auto loans that might bring the collector after me. Eh. I can wait the three months just to be sure. Thanks.

[MarvBear]

If the collection account is not on your credit file(s) at the time you tender an application, effectively it does not exist, nor would there be any association with an analyst decision.

 

A creditor from your past can always come after you for an alleged debt.

 

So I'm still not clear if your reference to the SOL refers to the statute of limitations for reporting to a CRA or your state statute of limitations for collection of a defined type of account.