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Denied loan at CU - how long until delinquencies aren't considered


dogbitesman
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I have another post regarding a collection, but I found out I was denied a loan for a number of reasons.  My income is approx $1500 per month - but I have NO expenses since the mtg is in my spouse's name - no car loan - and my cc monthly payments total $75.  I do have a collection on my account.  Loan purpose of $3000 was to pay off collection (and I put that on the loan application) and take care of some immediate needs in our house.  We are getting about $10K, but it won't be until later this summer.  I was denied the loan for the delinquencies on my account and not enough income to support loan (the payment would have been about $90 per month).  The last delinquency was in Feb of 12 - so we are are talking 15 months ago.  We are looking to get a car loan in the fall - and we want it in my name, as the car will be in my name (we are trading mine), and I would like some installment credit on my account. How far back do they look when considering a loan.  My credit scores (unofficial - from Karma and Sesame) are 683 and 663 (until the CU ran my credit and that dropped the 663).  All my debt ($1200) will be paid off by then as well.  What are the chances of getting a loan then, and what should I do in the meantime besides paying off the collection and CCs?  Will the delinquency hurt me regardless?  Thanks in advance for any help anyone can give me.

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A delinquency will hurt you for the duration of its presence on your report. However, the longer it has been since the delinquency, the less it will hurt.

 

With super low cc balances (or zero, even better!) your score with your income should be fine to get a car loan, so long as it's not like 20 grand or something. 

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what happens to the scores if you have no credit cards but installment loans you are paying on secured by the furniture/equipment until paid!!! I opened 2 Conn's Account with low balances and one Furniture account which i fully paid in 3 months (90 days same as cash) for $2000 limit. Conn's balance is 800 on one (with no interest 12 months financing) & 400 (6 mos no interest financing) but with installment payment every month!!!

Is there any advantage paying CONN's off before the 12mos or 6mos. The most recent score i got was 610. I thought that was good enough to apply for a chase bank credit card (United Explorer, Southwest, Slate). Didn't work!!! Had one too many collections listed!!!!

 

How does that look on your credit report? idk

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what happens to the scores if you have no credit cards but installment loans you are paying on secured by the furniture/equipment until paid!!! I opened 2 Conn's Account with low balances and one Furniture account which i fully paid in 3 months (90 days same as cash) for $2000 limit. Conn's balance is 800 on one (with no interest 12 months financing) & 400 (6 mos no interest financing) but with installment payment every month!!!

Is there any advantage paying CONN's off before the 12mos or 6mos. The most recent score i got was 610. I thought that was good enough to apply for a chase bank credit card (United Explorer, Southwest, Slate). Didn't work!!! Had one too many collections listed!!!!

 

How does that look on your credit report? idk

If you have a question on how something shows up on YOUR report, you should create a new thread with your individual circumstances on it...Thanks :-)

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@dogbitesman

 

You were probably denied the $3K loan because it is unsecured. 

 

You will be in much better shape for the car loan because it is collateralized by the car.  You may be asked to put down a sizable down payment to keep the loan from being upside down and will have to pay a higher interest rate.  I would stay with the CU for financing and possibly arrange for prequalifying prior to going car shopping.  Remeber when you are at the dealer arranging financing, you are at a dissadvanage and they will try to sell you on a payment rather than the size of the loan.  Additionally, there are unscrupulous dealers that will let you drive off the lot thinking you have financing in place, then will call you a few days later saying the financing "fell through".  You are then over the barrel and the new loan has sky high interest rates.  Having the financing in place, will keep you within your original budget.

 

I just went through this last year.  I was preauthorized by both my CU and Cap 1 for an auto loan up to a certain amount. I went with my CU because I could make additional payments on the principal without hassle.  Cap 1 takes the additional money and applies it to future payments if you don't follow what seemed to be a complicated procedure which doesn't save me on the interest that I pay.

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