I recently just raised my credit score from 580 to 620, and i want to purchase a car. I've already been to one dealership and they pulled my credit. I've been approved for a car between 15000 and 16000. How many times at this one dealership do they pull your credit from different banks and how many more dealerships should i go to before it hurts me any worse than it already has hurt me? Also I co-signed for my husband last year on his car , why won't they let me have one in my own name, even though i make more more than him and credit rating is higher than his?
2007-10-09 01:26:26 · 5 answers · asked by Joy M 1 in Business & Finance ➔ Credit
Dealerships will only pull your credit once, and they choose one of the three major reporting agencies. Every time you go to a new dealership to request credit, they will pull your report again. Each time it's pulled it knocks your score down a couple of points. So, the fewer dealerships you go to, the better. Or, try going to your bank and see what they can pre-approve you for. That way you will know the price range you're looking for and can go to as many dealerships as you want without additional credit pulls. And the reason they may ask for your husband to co-sign could be your debt to income ratio. Either of you by yourself might not make enough to fulfill all the obligations on your credit report, like the mortgage, cars in both your names, credit cards in both your names, ect. But when you combine your incomes the debt to income ratio goes down, showing the lender than you can afford a new loan.
2007-10-09 05:44:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you've been paying your car loan for quite some time and you have a low balance but your original amount was higher, this is considered a good use of credit. Paying it off won't improve your score. Payment history - 35% Amounts owed - 30% Length of credit history - 15%
2016-05-19 22:11:45 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Its good that you had worked to improve upon ur credit score. Unless its a MUST thing to buy a car now, you can postpone buying a car and continue to use the present car u are driving.
Hope u do realize that new cars lose almost 10-20% value when u drive out of the dealers lot. Continue to work on getting better on ur credit score.. its soooo easy to go down south on credit score but so much harder to up north.
2007-10-09 01:48:51 · answer #3 · answered by Sreenu 4 · 0⤊ 0⤋
You failed to mention what kind of interest rates and terms they have offered you. Without that, we really don't have the whole story. Your credit is still fair although 620 is much better than 580. It is still low enough to warrant a cosigner by many financial institutions. Basically, it's lowering the risk of the lender since they would have more people to go after should you default.
2007-10-09 01:38:13 · answer #4 · answered by Jay P 7 · 0⤊ 0⤋
Joy,
candid answer?
u want to save up some money buy a 5000$ car cash and own ur life and future.
cars go down in value while the loan continues. your car payment over one year will buy a good car and save u 1000s.
visit daveramsey.com look for the 'video' Drive Free, Get Rich . watch it and understand why car loan will be a slippery slope to broke.
focus on paying off hubby car so u can own ur money instead of giving it to perfect strangers.
2007-10-09 02:29:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋