How long should I wait to apply for auto loan after debt settlement?
Date: Mon, 02/28/2011 - 05:46
Hi all,
I settled all my debts by December 2010 and my credit reports showed "settled" in most of my credit card accounts. However, I still have 30, 60, 90, 120 days in my report before I settled and I want to apply for an auto loan within the next 3 months with my credit union because my car is on its last leg. My scores are 575 with Equifax, 562 with Transunion accord to myfico. I currently have one active autoloan and several small credit cards that are paying on time. Utilization is around 66%.:)
How long should I wait after settlement to apply for another loan? How to improve my scores?
I settled all my debts by December 2010 and my credit reports showed "settled" in most of my credit card accounts. However, I still have 30, 60, 90, 120 days in my report before I settled and I want to apply for an auto loan within the next 3 months with my credit union because my car is on its last leg. My scores are 575 with Equifax, 562 with Transunion accord to myfico. I currently have one active autoloan and several small credit cards that are paying on time. Utilization is around 66%.:)
How long should I wait after settlement to apply for another loan? How to improve my scores?
The only way to improve your credit scores is to continue to pay
The only way to improve your credit scores is to continue to pay your bills on time. If there is anything that shouldn't be on your credit report, dispute it. But only time will improve your scores.
Before applying for a car loan I would check with the financer and ask what credit score is required so that you don't get hit with a credit inquiry which might lower your score, and strive to meet that score. You can monitor your scores for the next couple months.
Would it be possible to purchase a used car just to get you around until your credit improves?
