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Best Advice for Improving FICO Auto score


GoHooterGo
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I plan on applying for an Auto Loan in about 3-5 months (whenever my new 2022 Toyota Tundra) is delievered.

 

So far, I had a pre-qualification done through Capital One and PenFed CU, both were for about 4.6-4.9% APR for 72 months.

 

Toyota is offering a 2.99% APR for over 72 Months, but I want to ensure I can get the best rates (Under 3.5% or better) by the time I apply. I will plan on applying at my local CU (2 of them), PenFed and Navy FCU.

 

Here is my situation and scores:

 

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My Current Utilization for the following:

 

Equifax: 49%

TransUnion: 26%

Experian: 51%

 

I just paid off 2 credit cards that will be reporting in the next 2-3 days, and my Utilization should drop down to around 36-38% for Equifax and Experian, and TransUnion will drop down to about 6-7% Utilization.

 

As for the baddies:

 

- TransUnion will have the only remaining collection account will be removed around the end of April.

- 7 Defaulted Student Loans that have since then been paid off (each loan has 10 Late Payments) for a total of 70 Late Payments will be removed in May due to Early Exclusion on TransUnion

- Verizon Wireless Charge Off (still reporting $60) SHOULD be reporting paid soon with in the next few days (I paid this charge off about 3 weeks ago)

- Still waiting for a Autherized User Account to report to TransUnion and Experian (26 Year Old Account with 0% Utilization and 0 Lates).

- I had an Autoloan that I cosigned for my NOW ex-wife that she allowed to be repo'ed just to get back at me in 2017 and is still currently reporting as a Charge Off with $736 owed.

- I have had 3 Autoloans, 2 of them NEVER LATE, and 1 which had a few late payments from when I was going through my divorce.

 

So my question is this: SHOULD I focus on paying off the AUTOLOAN Chargeoff from Ally Bank ($734) OR Lower my Utilization even more to below 8.9%

 

I will have about $1500 to play with over the next month, and I can either get my Utilization down to that range, OR pay off the chargeoff and have it report as PAID. This charge off will fall off around the end of 2023, but I will have already applied for a new loan by then.

 

Thanks for any and all help!

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2 hours ago, MarvBear said:

I think that if you pay the auto charge off you will probably experience a score decrease.  I would personally recommend that you lower your utilization as far as possible.

Why is that? I don't question it, but question why a scoring model would dock someone for paying a C/O.

 

I do have a current auto loan for over 2 years, no lates.

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51 minutes ago, GoHooterGo said:

Why is that? I don't question it, but question why a scoring model would dock someone for paying a C/O.

 

I do have a current auto loan for over 2 years, no lates.

The negative tradeline will have been updated to show a more recent date of activity...instead, unless it is already updating every month, it has been in the back corner, collecting dust and putting month after month in distance from the last report date...

 

Something else to remember is that rates ARE going up...you may need to revisit your goal.  I would also suspect better rates will be available at 36 or 48 month terms... 

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1 hour ago, centex said:

The negative tradeline will have been updated to show a more recent date of activity...instead, unless it is already updating every month, it has been in the back corner, collecting dust and putting month after month in distance from the last report date...

 

Something else to remember is that rates ARE going up...you may need to revisit your goal.  I would also suspect better rates will be available at 36 or 48 month terms... 

It is reporting every month.

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24 minutes ago, GoHooterGo said:

It is reporting every month.

It may very well be reporting every month, obviously, since it is on your report(s).  That is different than an actual update to the trade line which may not be to your benefit.

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3 hours ago, MarvBear said:

It may very well be reporting every month, obviously, since it is on your report(s).  That is different than an actual update to the trade line which may not be to your benefit.

They are showing balance changes every month, so I'm lead to believe it is being updated every month.

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10 hours ago, GoHooterGo said:

I had an Autoloan that I cosigned for my NOW ex-wife that she allowed to be repo'ed just to get back at me in 2017 and is still currently reporting as a Charge Off with $736 owed.

This charge off amount updates every month? Does the amount go up or down?

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9 hours ago, MarvBear said:

OK,   I guess I am being particularly dense, because I don't understand what you are asking then regarding this charge off.   I just don't understand your question.

 

The only question I had was "What would be more beneficial to my FICO Auto Scores, paying down Utilization or Paying off this Repo/Auto Charge off from 2017?"

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4 hours ago, GoHooterGo said:

"What would be more beneficial to my FICO Auto Scores, paying down Utilization or Paying off this Repo/Auto Charge off from 2017?"

 

As before,  my advice would be to pay down your utilization.  I think that would serve you best for the purposes of a new auto loan.

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