Credit?
OG stackadolla asked:
I am attempting to purchase a vehicle, but a problem than I have run into constantly is my financing history; meaning I have not financed anything over $1k. My credit history is good, I have about four credit cards that I sustain a moderate revolving balance on monthly. I have done well with them, but I have had one for 1 year, the next for almost a year, and the other two inside of six months. The auto that I am trying to purchase is around $8k, with one bank accepting me for a rate of 7% with 20% down, while all other banks decline my application.
I am attempting to purchase a vehicle, but a problem than I have run into constantly is my financing history; meaning I have not financed anything over $1k. My credit history is good, I have about four credit cards that I sustain a moderate revolving balance on monthly. I have done well with them, but I have had one for 1 year, the next for almost a year, and the other two inside of six months. The auto that I am trying to purchase is around $8k, with one bank accepting me for a rate of 7% with 20% down, while all other banks decline my application.
I guess I have three questions =P
1. Why did this creditor accept me on decent terms?
2. How do I find more like that?
3. If I keep me credit cards in good standing, will that eventually solve the issue with my financing history?
Thanks
Larry
Tags: Credit Cards, Creditor, History Thanks
August 6th, 2009 at 3:13 pm
Auto finance is what I do for a living so I will attempt to answer your questions.
1. They most likely have a computer that approved you based on your score alone. (Rare but it doe’s still happen)
2. I wish I knew, it’s getting harder and harder to get even people with good credit approved.
3. It will help, but to have the very best score and profile you need at least 3 credit card accounts (revolving) with balances below 30% of your limits and 2 cars, boats, homes, computers, furniture or personal accounts (installment) all with good long pay history’s.
The reason is scores are based on the following;
1. Payment history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio 30%
August 8th, 2009 at 6:15 am
Spifman answer is on the one, since he is in the industry, he knows. I would say keep paying your credit cards on time, even get a higher credit limit on your charges, just don’t use it. You may want to get a current credit report to see what might be keeping your score down.