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Posted in Auto Loans
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AzTbird

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Pay down balances or use for down payment on car?
Looking for a used car around 14K. Current score is 625, simulator shows that paying down balances by $800 will increase score to 652. Which is better - pay down balances to get a better score, with a lower down payment, or go in with current score with a higher down?

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You want to get your credit scores as good as possible. Pay down your credit cards. High credit utilization on cards can really ding your scores. Keep in mind that it may take a month or two for the payments to reflect and the balance adjusted on your credit scores. I strongly advise that you slow down here and do some serious reading about what it takes to improve credit and what kind of factors go into an auto loan. It would be best to get your credit in order and wait six months or a year before financing any major purchases. Keep in mind that most auto lenders will use a version of FICO scores, not the scores that you get here. FICO scores can sometimes be drastically different than the scores that you get here and unfortunately for most people, their FICO scores are usually lower than Vantage scores. Take your time with this and spend time preparing to get financed, you don't want to go into this unprepared and be let down with denials.

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