Is “unemployment” considered income for car leasing? Or is being unemployed an automatic disqualification? I have a current GM lease and live in SoCal.
How to prepare credit for a lease.
I want to cover all my bases and and going for 0dn. This will likely be qualified jointly w wife. Just put an order in for a very well equipped diesel Gladiator Rubicon (63k MSRP) and I may be in for a wait given the plant just shut down on account of a chip shortage and Wranglers and Rams and GCs have priority.
In the meantime I want to get my fledgling credit in top condition. Stats are:
Fico 8 708
Auto 2 669
Auto 8 717
(As an aside what could account for the big difference in auto loan scores?)
I’ll be dropping an 1800mo (rent) obligation starting Oct 5 and currently have a 332mo (13k balance) on wife’s caddy. 15k in CC limits that carry zero over each month. Combined income is 80ish. Bankruptcy in 2013.
We’re listed somewhere as high debt to income.
Assuming the truck will be ready in Nov, is one month enough time to clear the rent off the cr? Is there something to expedite that process? We volunteered to put it on our cr to help build credit but now it may become a hindrance.
Should we pay off the caddy? Now? Right before delivery? I like establishing credit history with the car loan and we’ve got a great rate through Suncoast credit union (2.75) so I’d like to keep it but not if it’s going to hinder the Jeep lease.
The problem is that there is no way you have a 669 with just these items listed.
Go to CreditKarma.com and sign up and see what exactly is hurting your score.
More than likely it’s the BK, but go there to see details on each item in your credit and which ones are red flags.
I have an Experian membership and credit monitoring through Capital One. They’re very generic with helpful info.
“Bankruptcy hurting score”
“Paying off CCs each month is good”
Etc
What more could I expect from credit karma? Do they really delve into the nuts and bolts?
I’ll look into it but I’d like feedback from those actively engaged in leasing autos and who may have experienced some bumps, etc. I know every situation is different but a consensus does paint a picture.
What are you renting? Housing?
That’s a small apt in So Cal 
The scoring models are different, but using the same data. All from Experian? Were I this shaky for Tier 1, I’d get the 3bureau scores unless you know they are only pulling Experian.
Does your rent show on your bureau? (Typically not). The only DTI affecting your score is the open trade-lines (not that it might not ding you later applying for a loan/lease).
As soon as any loan is paid off (and shows on your bureau as such), your score should update the next time you pull it.
What is the current DTI?
Assuming a Chapter 11 for the BK? Discharged in 2013?
Yes. I wont have a rent payment starting Oct.
2k sf house in an established picturesque community outside Orlando. Hate to see it go but a new loaded Rubicon will help cushion the blow, lol
doesn’t provide any of these scores.
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Chapter 11 discharged Mar '13.
I ran across dti I think buried in Geico credit monitoring. I’ll have to go back. Does 69% sound right?
Credit Karma says nothing new. Shilling is worse that Experian.
I get all that from Geico, Experian, and possibly capital One in different format.
For they have a dti in there somewhere?
That sounds very high
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The auto-enhanced flavors of FICO weigh installment loans more heavily than the FICO 8, which is a model commonly provided by banks and credit card companies.
Generally, aside from getting rid of lates, BKs, charge-offs, etc., the biggest lever you have on your FICO scores is reducing your revolving credit utilization.
Utilization is the percentage of your credit card limit that you’re currently using (a $20,000 balance on a card with a $75,000 limit is at 27% utilization).
Optimal is 1 card reporting a very small balance, because FICO weighs utilization on each credit card individually, overall utilization across all of your cards (total balances divided by total limits), and also the number of cards with balances.
EDIT: I should also mention that having all of your cards at $0 is a negative (albeit not a catastrophic one) because it appears to FICO that there is no current revolving account activity to score at the moment the score is generated.
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It’s possible they are adding all debt (rent, CCs, auto loan) to my income only?
The rent is high relative to our combined monthly income. 1810/3990
69% DTI and a BK?
That’s going to be very rough to get a lease.
Dti is based on gross, so if you’re at $80k/year, your monthly income is more like $6667
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Spit-balling here:
Your credit score’s DTI component will be:
(Sum of all outstanding balances on your bureau) / income
Which could be different on Equifax and TU depending on what is reported, where.
This DTI is understated by your rent, which you will be asked on the credit app. So your score may be slightly higher omitting the rent.
If the credit score (or another factor) doesn’t decline, it will look at your actual. DTI, which is the numerator above plus any debts on the credit app not on the bureau).
Your one CC balance is 18.8% of your income.
BK is less of a problem with FCA and most of the banks they might use. DTI may be the culprit here.
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8 yo bk,
No late payments since.
Carryover CC balance is right around 4%.
(I pay off all the cards on the 13th and 28th each month.)
I’ll be dumping an 1810mo obligation that’s being reported.
I can, if I should, pay off a 13k auto loan and that should make our dti very favorable.
I’ve been bolstering our Fico only really for the last 2 years.
My concern is balancing credit experience with the dti radio. I think the rent will be a benefit, but… I like the car payment for credit building and keeping the cash in my pocket.
Yeah I added my gross and my wife’s net.
More like (rent)1810/3646(net)