Credit score versus credit history?

lazar_wolf_2001: Credit score versus credit history?
Here’s my dilemma. I have FICOs between 695 and 740, but I got my first (cosigned) loan 10 months ago.

Can I expect to get the auto loans advertised for people with my FICO scores, or am I going to get shafted with a “minimal credit history” or some line like that?

Answers and Views:

Answer by Barry H
The reality is that companies look for a longer history than 10 months. Generally they want 3 trade lines (Cars, Mortgages, Credit Cards etc.) that have been active for at least 3 years. I am surprised that they would give you a FICO score with only 10 months history. Good Luck

Answer by Marla
The auto loan if you qualify is based on your income and not credit score. A minimum wage earner can obtain a perfect credit score, but not qualify for auto loans advertised.

Answer by Mike
Expect the shaft if you don’t have any substantial history of 2 years or more. You might get lucky though if you went to a big and crazy dealer (wackier the tv ads the better, especially at year-end closeout time).

You can influence their decision by putting more money down. The lower the original loan-to-value ratio, the lower the risk of the loan.

Definitely check out credit unions in your area. Many give consideration to people in your shoes. Again, propose a larger down payment to lower the risk an increase your odds.

Good luck!

Answer by jpocia03
The approval of an auto loan is 1 part credit history 1 part income.

Regardless of what the credit score is, an uneducated buyer can get shafted on auto financing. The first thing that you want to do make a commitment that you are shopping for an auto loan. Once that commitment is made, you can visit with your local bank or credit union and see if you can even get qualified, and if so what your rate would be.

Before that, you’ll need to decide on the automobile. The year, make and model number and mileage are all going to be considered. In most cases, if you are looking to finance a used car, they will allow up to 115% of the appraised value listed in NADA. (Google N.A.D.A).

This information needs to be provided to the bank, before they can determine whether or not you qualify. You just can’t call a bank and ask for there rates, cause everything needs to be considered.

Also, visit myfico.com, and download the free pdf. It has tons of information regarding the credit scoring system.

Good luck, and happy hunting.