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Posted in Auto Loans
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Question By
Zmaxwell886

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Looking to buy a new car, is a score of 670 sufficient?
I'm looking to buy a new Mustang, about 32k in total. I'll be trading in my current 08 Edge, on which I owe about 2-3k less than what the trade-in value is so that will probably just cancel out. I will be putting about 3500 down to make 10%. I have 3 credit cards, all at 0% utilization. My credit payment history is solid for the last 3 years as far as on-time. The reason i'm wondering if I will get approved is because about 4-5 years ago I was a stupid teenager that didn't understand credit and let an account go into collections. Never missed on a car payment, but the one credit card I had went into collections after I lost my job and it took about 3 months to get into the green on it. I currently have the loan on my edge, as well as being a cosigner on my wife's focus, i've had no problems getting third party car loans. However, the collection shows up as a derogatory mark on my credit karma, is this going to affect me much getting a brand new car? Thank you

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Your Golden!

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I am in the auto industry and a credit score of 670 coupled with the credit history you describe, you will have no problem getting approved on your auto loan for that Mustang, given that debt to income isn't an issue.  As long as you are realistic about a payment you should have no problem driving away in that Mustang.  Good Luck

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Reply by
roy2ohio

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I agree more with daddy2twins.  Depending on what credit model the dealer is using, you should have no problems.  Right now, banks are buying deep.  This means they are approving people with scores much lower than yours at competitive rates.  With the money you have down, any dealer with any type of merit should have you driving in a couple of hours.

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A credit score of 670 is sufficient, but given that you allowed an account to go into collections, you may have to pay a higher interest rate. The worst case scenario is not getting approved on your own (you may need a co-signer). The dealer may also allow a multiple pull from banks and lenders to help get you approved the best way possible and to find you the lowest interest rate, but be advised if the dealer does this you could get hit with multiple hard inquiries which would decrease your credit score.

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@taerin,

I once (3 years ago?) applied for a car loan and I had 4 inquiries from the dealer. I thought those count as 1.

Well, few months later, I applied for a credit card (from a very large bank)and although I got it, I received a letter from the bank that the ONLY reason I got lower limit is because my credit has "too much inquiries". I checked my credit report monitoring and the score (not FICO, but one of the CRA's own scoring) went down, not much but it still went down and the reason? Too much inquiries.

So I don't know WHO decides that multiple inquiry in 30 days are considered ONE inquiry, because definitely not the bank or the CRA since it DOES affect my credit.

Just FYI...

Reply by
Microwe

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The same thing happend to me.  The dealer pulled credit over nine places and all showed up as hard inquiries on my credit report.  Do not believe that you can shop for a loan (Best Rate) withn x amount of days and only show up as one inquiry.  These hard inquiries dropped my FICO over 60 points :-(

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7 years

Helpful to 7 out of 13 people

i had a similar situation, the derogatory mark took about 7 yrs to fall off but itsounds like you should be good man, BUT dont you dare let them say, "let me see if i can find a lender that will give you a better deal if you have one in place. they will destroy in hard credit inquiries. auto dealers are notorius for that.

Reply by
taerin

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Helpful to 39 out of 53 people

What you wrote about destroying your credit with multiple inquiries is completely bogus. All auto loan inquiries within a 30 day window count as one hard credit inquiry. This allows consumers to rate shop.

Please know what you're talking about before you start giving advice to people over the internet.

Reply by
wowsoldier32

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@ fresh: This taerin guy must know something that we don't because the same thing happened to me. My wife and I went to get a car from a dealership and they ran maybe 7-8 different banks to get us the loan. At least, my credit report showed that same amount of hard inquiries between that afternoon that we visited the dealership and the rest from the next morning.

@ taerin: If OP and I need to do something in order to get the multiple inquiries marked as a single one, then please let us know instead of arguing that it isn't the case. Both of our credit reports say different then what you are arguing. I was also operating under the assumption that all the inquiries would some up as 1, or at least be changed automatically since they were all performed over the course of two days....which is not the case. It is approximately 8 months later and the hard inquiries are still all seperately and affecting my credit negatively.

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What is a good credit score

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What is a good credit score to lease a new car my score is 668 it was 704 please help

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credit score 670 collection on record

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hello   you probably will be approved for new car loan,   your interst rate will be high,  the negative collection  is hurting your score and  getting  better interst rates.      good luck   and   do your research     regards     vito

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What do I need to do

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I just been discharged from bankruptcy and my credit score is 572 just wondering what do I need to do to get a loan for a 2016 Chevy Camaro

Reply by
guccijake

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Helpful to 2 out of 2 people

Good Luck. Sounds like you still haven't learned your lesson. You're interest rate, if you can get a loan, will put you right back where you were. 

Reply by
crimsonknight89

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They'll probably approve you with 50% down and some insanely high interest rate--like 15%. 

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