What exactly is “a solid credit history?”?

uniquename74: What exactly is “a solid credit history?”?
I just got a new job, and I’m going to save up money for the next six months to put down on a new car. I’ve had two credit cards for 11 months now, and they have all been paid on time. I’m wondering what exactly do creditors (auto lenders) look for, in terms of length and score?
My balances are high right now (almost maxed out)… If I pay them all off a few months before I get an auto loan will it affect me?

Thanks!

Answers and Views:

Answer by mtj83099
A 12 month history is desired.
Maintain LOW balances on your cards with GOOD payment history.
They will ALL offer you a loan, no matter what these days to be honest. A good credit rating/history will get you lower rates and longer terms. WARNING – these places make a very large percentage of their profits from the financing. On a $ 20K loan, they might make $ 500.00 more on a rate of say 9% versus just a rate just 1/8th higher (9.125%)! Work that finance guy’s rates and terms hard no matter what though, they can always go lower on the rate.

*** Sure – paying off the debit at least two month’s prior will better you debt to income ratio’s and give you a higher balance you can borrower to a certain extent. Best to pay them LOW – maitain small balances right now. Paying off entirely will not help your score as much as you think. Low balances – good payment history is the ticket to a higher score.

Answer by bdancer222
Pay the credit cards off. Carrying balances of more than 30% or your available limit hurts your score. Pay off the cards and your score will get a quick boost.

The better your score, and the less credit card debt, the more likely you will get a better interest rate on a car loan.