i want to get a new car does my credit score have anything to do with that?

Question

i just looked at my credit report do i have to pay off these things before i can get a new car?? will paying them off get my score up??

ok i have 1 credit card for 242.00, then there is a sprint bill (339.00), an eye dr(80.00), and 2 i don't know what for.(469.00 , 125.00)
does that help?? these are the only things on my credit report besides my student loan which is current.

Answer 1

Basically, if you are paying cash for the car then there's no need to check your credit, but if your are borrowing to buy the car, then yes, the bank, car dealers or whoever is funding the purchase will run a credit check. There's no way around it. Sorry.

Answer 2

Auto finance is what I do for a living and auto loans are based on the following factors;

1. LTV (loan to value).
2. Term of loan.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income ratio.

The actual factors of your credit score are as follows;

1. Payment history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio.

Nothing else no matter what anyone says factors into your credit score. Jake simply does not know what he is talking about.

Depending on how all of the above is submitted to the lender you may or may not be approved and you may or may not need a co-signer.

Answer 3

4 factors drive your credit score.
1. Length of time in credit history
2. Potential debt burden and utilization.
3. Recent Derogatories.
4. Inquiries in last 12 months.
Then there are four criterias in approving a loan.
1. Affordability
2. Creditworthiness.
3. Stability.
4. Fallback (collateral)
Since this is a car loan there is a fallback and since the loan is secured by the product it mitigates much of the risk.
If you pay down the debt it decreases the utilization and thus makes your deal stronger. Paying off the existing debt facilities though may help your deal but is not the only factor in the new car loan.

Answer 4

Paying off existing debts should improve your chances of financing the purchase of a car. It shows that you are a good credit risk. However, you do not have to pay off all your debts, you just have to make sure they are kept current, with no late payments.

You do not say what kind of debts you have. If they are credit card debts, it is best to pay them simply because such debt carries high interest rates. Also it is best to carry debt no greater than about 20-25 percent of your available credit. That is, if you have a card with a $5,000 credit limit, you should not carry a balance of more than about $1,000 on it. It looks bad if you max out your credit cards.

Answer 5

There are shady car dealers out there who will lend to anybody. Your credit score will determine what you pay in interest. If you already have a car, try saving what you would pay for the car payments for 6 months to a year. Then you will be able to by for cash and not have to pay all that interest.

Answer 6

with no further information, how can anyone answer?

you have to be able to make the payments -- usually judged as total payments are less than 34% of total income.

after that, credit score affects the interest rate you'll be charged, not whether you'll get the loan -- the new car companies all need desperately to sell cars

Answer 7

paying them off will eventually, talk to someone whom works in that industry, but basically you need some good points, not just eliminating the bad....

yes, your credit score counts with new cars...

Answer 8

It only maters if you plan to finance (get a loan) or lease your vehicle.

There is no way to quickly increase your credit score.

Answer 9

yes..