Topic: Will I be approved for auto financing?

[mmret]

Hmmm...what do you financiers consider to be the most credit-worthy customers based on how you access credit history/ratings?

...

A+ = 750 and higher (800s is what I call pretty much perfect)
This is great credit score / history, assuming there's 3 years history. 
At this stage you basically get whatever you want, as long as your income shows it can cover the payments.

Interesting. I checked my Equifax rating recently and would get your A+.     But not needing or intending to borrow anything it is irrelevant.   Gave up borrowing when I retired.


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I checked mine recently and only got to 759. I found this odd since

- over 10 years history
- never missed a bill
- don't have any outstanding debt other than a couple grand a month on the credit card
- own the house, no mortgage
- have what most would consider a 1%'er income



That said we do have a HELOC available on the house, for about $300k, but it has no balance on it.

[dirtyjeffer]

sometimes, having available credit, that isn't in use, is of no advantage...last time i had mine done (when i got my car), it was 777...we don't have a lot of debt, but it is used regularly, so there is plenty of history to judge by.

[Northernridge]

Hmmm...what do you financiers consider to be the most credit-worthy customers based on how you access credit history/ratings?

Being credit union based allows me some independance.  I get to pull a credit bureau and see everything.
This allows me not only to have a score / grade but to put together a financial picture.  Too many times someone's score isn't the entire story.  Seeing the credit bureau and having a quality conversation allows me to put a picture together. 

I've been told by a few people how some banks only allow their lenders to pull a credit bureau for the system to give a yes or no.   They don't even get to see the credit bureau.   (why it may be where it is, ect.)

In my world there's no black and white answer to being credit worthy.  Much depends on what they're applying for and why.    However one example is high ratio mortgage insurance.  Genworth will not provide a mortgage for anyone that has a 649 and under score.  649 is B (A+ being the best and E being the worse)

E = 549 and under
D = 550 to 599
both these case would likely not see any unsecured lending at all. (generally)

C = 600 to 639
this is a typing point.  Miss a bill payment and you drop to D.  Keep making payments on time and within about 4 months you should be up to B.    This is a big gray area and requires some analysing to see which way they might be going.  Even here, I'm unlike to provide unsecured lending (generally)

B = 640 to 679
This is consider decent on the low end and good at 660.

A = 680 to 749
This is a good to very good credit score.  Likely easy to lend to, assuming there's 3 years history.

A+ = 750 and higher (800s is what I call pretty much perfect)
This is great credit score / history, assuming there's 3 years history. 
At this stage you basically get whatever you want, as long as your income shows it can cover the payments.

Interesting, thanks for taking the time to post this.

[neil]

Hmmm...what do you financiers consider to be the most credit-worthy customers based on how you access credit history/ratings?

...

A+ = 750 and higher (800s is what I call pretty much perfect)
This is great credit score / history, assuming there's 3 years history. 
At this stage you basically get whatever you want, as long as your income shows it can cover the payments.

Interesting. I checked my Equifax rating recently and would get your A+.     But not needing or intending to borrow anything it is irrelevant.   Gave up borrowing when I retired.


Sent from my iPad using Tapatalk HD

I checked mine recently and only got to 759. I found this odd since

- over 10 years history
- never missed a bill
- don't have any outstanding debt other than a couple grand a month on the credit card
- own the house, no mortgage
- have what most would consider a 1%'er income



That said we do have a HELOC available on the house, for about $300k, but it has no balance on it.

The balance on the card is the reason.  Also if you have too many revolving accounts it will drop your score.  Some people have a Visa, a MC, an AMEX, a Canadian Tire MC, a Home Depot card.  Even if the balances are zero just having more than 3 lines will drop your score.  It's not catastrophic but can make a difference between a 750 and 800

[neil]

you will most certainly need a co-signer.

With a credit union you would.  With TD auto Finance, or RBC, he has a good shot of doing it on his own.   It's a crazy system, but I've gotten system instant approvals from people with no business getting loans.  I've had TFW's in the country for 6 months with a credit card getting Systems.

I've had 18 year olds in the situation as the OP also get them.  CC for 9 months, high beacon.  If his residency and income sources are stable, with the $5k down I'd put his odds at around 80%, so long as his TDSR is inline with the new payment.

Usually Credit Unions are very good for this.

I agree, I have an excellent relationship with all the buyers at the local CU dealer finance office, and can get a lot of flexibility from them you won't get from a national bank.  The only thing they fall short on is no system approvals LOL.

[mmret]

The balance on the card is the reason.  Also if you have too many revolving accounts it will drop your score.  Some people have a Visa, a MC, an AMEX, a Canadian Tire MC, a Home Depot card.  Even if the balances are zero just having more than 3 lines will drop your score.  It's not catastrophic but can make a difference between a 750 and 800

It is paid off every month in full. The few thousand is just the monthly bill amount.

I mention is as debt because technically, at the moment you use a CC, debt has been created. So would have been technically incorrect to say that I have zero debt unless my CC balance were zero at all times.

Surely you wouldn't think me silly enough to carry a CC balance?

[tpl]

The balance on the card is the reason.  Also if you have too many revolving accounts it will drop your score.  Some people have a Visa, a MC, an AMEX, a Canadian Tire MC, a Home Depot card.  Even if the balances are zero just having more than 3 lines will drop your score.  It's not catastrophic but can make a difference between a 750 and 800

It is paid off every month in full. The few thousand is just the monthly bill amount.

I mention is as debt because technically, at the moment you use a CC, debt has been created. So would have been technically incorrect to say that I have zero debt unless my CC balance were zero at all times.

Surely you wouldn't think me silly enough to carry a CC balance?

Wow! Balances are still allowed on Credit cards?

Seriously I wonder why cc interest rates have stayed the same even though other interest rates have dropped so much ( and stayed low for years).  If cc rates were at, say, 10% over prime and fluctuated with prime I could see that. Flaherty must have had a good reason for not sorting that out rather than playing with mortgages.

[ArticSteve]

I'm sure TD will loan money to the OP ..... @ 19.99%     They're good at that.

[neil]

I'm sure TD will loan money to the OP ..... @ 19.99%     They're good at that.

Their subprime program has a minimum income requirement, so actually no they wont.  His only chance is a System prime approval.

[neil]

The balance on the card is the reason.  Also if you have too many revolving accounts it will drop your score.  Some people have a Visa, a MC, an AMEX, a Canadian Tire MC, a Home Depot card.  Even if the balances are zero just having more than 3 lines will drop your score.  It's not catastrophic but can make a difference between a 750 and 800

It is paid off every month in full. The few thousand is just the monthly bill amount.

I mention is as debt because technically, at the moment you use a CC, debt has been created. So would have been technically incorrect to say that I have zero debt unless my CC balance were zero at all times.

Surely you wouldn't think me silly enough to carry a CC balance?

Haha.  I'd have assumed that was the case.  What may happen though, is that your CC reports to the Bureau on, say the billing date, say the 17th of the month, when the balance is $2200.  You get your bill and pay off the account in full, but the Bureau won't get an update until next month, on the 17th, when you have again put your expenses on the card.  Updates aren't done in real time.

[mmret]

The balance on the card is the reason.  Also if you have too many revolving accounts it will drop your score.  Some people have a Visa, a MC, an AMEX, a Canadian Tire MC, a Home Depot card.  Even if the balances are zero just having more than 3 lines will drop your score.  It's not catastrophic but can make a difference between a 750 and 800

It is paid off every month in full. The few thousand is just the monthly bill amount.

I mention is as debt because technically, at the moment you use a CC, debt has been created. So would have been technically incorrect to say that I have zero debt unless my CC balance were zero at all times.

Surely you wouldn't think me silly enough to carry a CC balance?

Haha.  I'd have assumed that was the case.  What may happen though, is that your CC reports to the Bureau on, say the billing date, say the 17th of the month, when the balance is $2200.  You get your bill and pay off the account in full, but the Bureau won't get an update until next month, on the 17th, when you have again put your expenses on the card.  Updates aren't done in real time.

That's a pretty stupid system then. But doesn't surprise me as we are talking about consumer credit agencies.

[quadzilla]

I can't remember the last time my CC balance was at zero and I do pay it in full every month.

[Harpster]

Hmmm...what do you financiers consider to be the most credit-worthy customers based on how you access credit history/ratings?

...

A+ = 750 and higher (800s is what I call pretty much perfect)
This is great credit score / history, assuming there's 3 years history. 
At this stage you basically get whatever you want, as long as your income shows it can cover the payments.

Interesting. I checked my Equifax rating recently and would get your A+.     But not needing or intending to borrow anything it is irrelevant.   Gave up borrowing when I retired.


Sent from my iPad using Tapatalk HD

I checked mine recently and only got to 759. I found this odd since

- over 10 years history
- never missed a bill
- don't have any outstanding debt other than a couple grand a month on the credit card
- own the house, no mortgage
- have what most would consider a 1%'er income



That said we do have a HELOC available on the house, for about $300k, but it has no balance on it.

How did you check your credit score #?  Equifax?


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[blotter]

checked mine recently and only got to 759. I found this odd since

- over 10 years history
- never missed a bill
- don't have any outstanding debt other than a couple grand a month on the credit card
- own the house, no mortgage
- have what most would consider a 1%'er income

this is somewhat a reason why a paticular score isn't the be all, end all.
income has no impact on the credit score.

here's an example of two "people" who handle credit very differently but end up with the same score:

You've never missed a bill, have a large HELOC with no balance and let's just say that ONE credit card.
while each month you pay the bill in full, today you, say purchased $1500 worth of stuff on a $2000 limit card.
In a week you check your score, at that time, depending how and when the credit card company reports it, you can be showing an owing balance of $1500.   (but you plan to and always pay in full the day you get your bill)   The credit score can still end up showing you owe something.   Balances are tracked only as reported which is usually once a month.   

Now take someone else.   that never miss a bill, have a large HELOC with no balance and one credit card with a limit of $2000.  Well this person, instead of payment the entire bill each month, they simply throw a lump sum.   It's more than enough to satisfy the minimum payment and they're always paying on time. 


The reporting between these two people would be virtually the same.   A credit score doesn't really tell us, person A always pays in full and person B just makes payments.   It'll only give me a limit of the card, balance at the time reported and IF there are any late payments (30 days, 60 days, 90 days).