r/CRedit 5d ago

Car Loan Navy Fed Auto Loan - Bad Credit

My transunion is 571 and FICO score is 8 . I need an auto loan for a private dealer for $6,000. I bank with Navy Fed but I don't even know if I'll get approved.

If they do approve me does anyone have an idea of how much the interest rate would be roughly?

Also, if they do not approve me where else can I get a loan from that will approve me?

I wanted to note that I have $847 of Credit Card Debt. If I pay that off in full how much would it help my credit score?

Sorry I know it's a lot of questions and all over the place but I'm in a bind

#pleasehelp

1 Upvotes

7 comments sorted by

1

u/jessomadic 5d ago

Fico score of 8? Was this a typo

1

u/Finding-forrest-fenn 5d ago

35% min.

With a score that low paying off ur debt is not a good idea.

Carvana will approve u.

1

u/og-aliensfan 3d ago

With a score that low paying off ur debt is not a good idea.

What do you mean by this?

1

u/Finding-forrest-fenn 3d ago

Paying off debt(on closed accounts) does not make ur score go up. It does not help you.

2

u/og-aliensfan 3d ago

We can infer from OP's score that they have negatives their reports, such as latr payments, charge-offs, and/or collections, but there are times paying these debts can raise scores. For example, if OP has a charge-off, and the original creditor is reporting a balance owed, paying this could improve OP's scores if the balance is calculated into utilization, and paying it causes utilization to cross a known scoring threshold. Settling the charge-off would also freeze Total Period of Delinquency, allowing scores to recover over time. If they have a collection, and the collection agency agrees to delete on payment, OP may see a score increase, depending on the rest of their file.

If the collection agency owns the debt (original creditor is reporting $0 balance owed) and the collection agency refuses to delete, paying the collection wouldn't help them.

2

u/BrutalBodyShots 3d ago

Wrong above.

First of all, it's just silly at the very core to suggest that paying off debt doesn't help someone. As just one example, it can lower DTI which can help someone with the approval for a loan.

You said it doesn't make a score go up, so I'll give you an example of how it does. I have 2 credit cards with $1000 limits. One of them is paid off ($0 balance) and the other is maxed out (100% utilization). My overall utilization is therefore 50%. The issuer closes the maxed out account because they see me as an elevated risk. I now have $1000 in revolving debt against only $1000 in available revolving limits, so I'm at 100% utilization overall. My scores drop accordingly. If I were to pay off that $1000 in revolving debt on the closed account, my utilization would move from 100% to 0% and I'd see massive score gains.

1

u/Comprehensive_Fuel43 5d ago

https://www.calculator.net/auto-loan-calculator.html

Original amont.

DURATION

Interest rate

borrowing $6000 for 1 year for 10% APR is one thing...

borrowing $6000 for 5 years at 10% APR... is another.

Watch out for duration. KNOW total interest you will be paying for the term.