Bad Credit Auto Loan – myFICO® Forums #auto #detail

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My credit is horrible due to a divorce and the pending foreclosure it caused (long story). I have moved to a new residence, but because the foreclosure has not gone through – my credit is still taking a monthly hit for “late payments.” I have two credit cards in good standing (never a late payment – one secured, one unsecured), an auto loan that is in good standing (amount owed = trade-in value), two student loans in good standing, and my monthly expenses at the moment equate to less than 1.5 weeks pay. I also have several collection accounts on my credit report from when I was married.

I have requested a Consumer Statement be added to the mortgage tradeline – of course the tradeline will still be there, but perhaps it will help to explain why it is there. I am working on GW and PFD letters to the few collection accounts that are currently on my report.

I applied for an auto loan in April, and while one lender would approve me – it was at 18% and I could not get the vehicle I wanted. My car is a 2008 with 70,000 miles on it, so I decided to wait and try to build up my credit and a significant downpayment. I will be trading my car in and putting a minimum of $5,000 down when I purchase a new vehicle – will this improve my chances at getting approved for the vehicle I want AND should this improve my credit enough that I get a better interest rate?

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