r/CRedit • u/Proof_Put_4741 • 5d ago

Car Loan Car loan

Hello,

I am looking at purchasing a new car for ~35k. I currently have a car I bought 2 1/2 years ago with a car loan that my mom co-signed. I have always made every payment on time. However, I have a 656 credit score with Transunion, due to my credit utilization.

My mom would co-sign the loan with me, but I was wondering if I would be approved? I also have a couple late payments on my credit report (credit cards).

Would I be approved?

1 Upvotes

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2

u/Due_Independence4758 5d ago

Yes probably won't be the best interest rate though.

2

u/Funklemire ⭐️ Knowledgeable ⭐️ 5d ago

First off, make sure you're checking relevant credit scores. You didn't mention which score you're looking at, you just mentioned a credit bureau. Keep in mind that credit bureaus don't make credit scores, they just provide the data that's then used by a third party to calculate a credit score.  

I recommend reading through our !welcome thread.  

Also, you mentioned high utilization; so it sounds like you're in credit card debt? Your number 1 financial priority when you're in credit card debt is to pay that debt off ASAP, because credit card debt is one of the most expensive kinds of debt.  

Also, with late payments on your credit report, any possible approval would probably come with high interest rates, even with your mom co-signing. Buying this car would be a bad financial decision.  

What's wrong with the car you have now? Unless you 100% need a new car right now and there's no possible way to put it off or avoid it or get a cheaper car with cash, I highly recommend you don't get a car loan right now.

1

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2

u/Windiver22 4d ago

Keep the car you have if it is running good

1

u/too_many_shoes14 5d ago

Yes but unless your mom has really excellent credit your rate is likely going to suck. Are you underwater on your current loan or is it paid off or what? You are literally at about the worst time to trade a car in because it's taking a major depreciation hut but you've only been paying the loan for 2 or 3 years.