Ive been trying to clean up my credit. Im now in a very good position financially but due to previous mistakes in my youth, my credit score was not very good. I went to apply for financing for a car at a dealership last week when my credit score was 580. They found a bank that approved me but only for $8000. I thought, well gotta start somewhere.
Anyway im setup with myFICO scorewatch and today i get an alert that says my credit score went up and now its 639. Im wondering if i should just let it be or should i reapply now and see if i can get a higher approval amount and a better interest rate?
2007-08-23 08:56:54 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
A 60 point jump in a week is pretty big unless you have something major change. The two scores are most likely based off of different scoring systems. So the chances of your score that they run being the same as the myFICO score is small.
Also, the amount you were approved for was based on two factors. Your Credit Score and your Income(Debt to Income). Unless your income has drastically improved you probably won't get approved for much more than the $8,000.
However, if you were to reapply now is the time to do it. The scoring systems account for "rate shopping" as long as you do the inquiries in a short period of time, they count all of the inquiries as only a single one. Since you just did the first one last week, any more you apply for in the next week or so will not hurt your score any more than the first one did.
2007-08-23 09:08:55 · answer #1 · answered by OC1999 7 · 0⤊ 0⤋
⥠Well credit scores go by your debt to availabilty ratio. If you get a car, that will automatically bring your credit back down because you will be in debt by [[however much you get the loan for]]. I would wait until your score is at least over 700 that way when it goes down you wont have poor credit, you'll still have good or fair credit. A better score does mean better interest rates & higher approval amounts, [[if you are going to get the loan for sure]] I'd go to a used car dealership and find something that you can finance for that first amount [[so that you can pay it off quicker]]. Good Luck!
2007-08-23 09:06:53 · answer #2 · answered by NCIS ♥ Addict 6 · 0⤊ 0⤋
I think you should get it now if you need it. If you can wait then it is best to wait a while.
FYI: Not all dealers use the same system. So you might have an ok score with one and a terrible one with another. You might want to ask the dealer which scoring system he uses before appling again.
2007-08-23 09:58:49 · answer #3 · answered by Cali Girl 3 · 0⤊ 0⤋
You can buy a lot of car for $8000.00. Stay in a very good position financially and don't repeat the mistakes of your past. Better idea is to save the money and pay cash for the car.
2007-08-23 09:21:33 · answer #4 · answered by JB 6 · 1⤊ 0⤋
I would let it ride and work on my debt to income ratio and make sure all your payments are on time, then try in 6 months.
2007-08-23 09:55:16 · answer #5 · answered by Dewey K 2 · 0⤊ 0⤋
Wait..and find out whats on your credit file and start working on that.. go to www.fixmyuglycredit.com..its free and it helped me alot.
2007-08-23 09:23:24 · answer #6 · answered by Crazy cat lady >^ ^< 4 · 0⤊ 0⤋
Wait until it goes over 720 . . .
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2007-08-23 09:00:56 · answer #7 · answered by kate 7 · 0⤊ 0⤋