xscapes

I want to lease the 2016 Lexus RX, my experian report shows I have serious delinquency with about $12K credit card debt (paying off). I make $4.3K a month, I have perfect payment history, Do you think I have shot to get approve from LFS?

Allen K

iTrader: (4)

What's your FICO?

DaveGS4

iTrader: (2)

First question I'd have is which of the above is a true statement?

xscapes

Around 680

xscapes

On my credit report all accounts show that I paid on time, but when I tried to apply for credit card I get denied for serious deliquesces

mjeds

your FICO and your debt to unsecured credit ratio will determine your worthiness.

having $12K in debt isn't the whole story, what is your unsecured credit ceiling and what percentage of that ceiling is the $12K.
for example, I have $65K in unsecured credit limits, roughly 5 credit cards with limits from $7K to $25K however I only owe $3,300 in total credit card debt. so my unsecured debt ratio is about 5%

if you have 2 credit card with $6K limits and $12K in debt your ratio is 100%.
most finance companies don't want to see more than 20%-30% debt ratio, below 12% is ideal.

your FICO will also play a part, 680 or higher with a lower debt ratio and you are about in the middle and will probably qualify for most programs.

730 or higher with lower debt ratio and your in like Flynn.

DaveGS4

iTrader: (2)

So have you had delinquencies ? Typically the CC companies want yours business so I'd guess something is out there to cause them to deny, and if incorrect you should take getting that issue on first.

mjeds

you need to pull a long report, your delinquencies might be older than 37 months and they don't show on the short (free) reports, the banks pull 7-10 year reports.

your credit karma report shows a perfect history on a rolling 37 months, it doesn't show the older stuff that the banks will see.

xscapes

My CC utilization is 66%

mjeds

way too high, I suspect you will have difficulty with a lease or a low interest loan.

I had issues with GMAC when my CC ratio was at 25%. FICO was 780, and that was only for a month when I had an unexpected house repair. was the difference between a 1.99% loan and a 3.99% loan.
when I got the Lexus my ratio was 4%, I got a 1.24% loan without them even batting an eye, and my FICO score was lower, at 756 because I had just done a re-fi on the house 3 months prior.

xscapes

All my CC payment is paid on time, I don't understand why they said I have delinquencies

DaveGS4

iTrader: (2)

Doesn't have to be a CC. Could be rent, utilities, etc that were delinquent and reported

Have you been delinquent in paying ANYTHING in the last 5 years? CC should have offered you a free credit report with the details you are missing upon rejection. Did you get it?

xscapes

I have had several CC deliquesces payment back in 2012, all those accounts have been settled, paid off and closed.

DaveGS4

iTrader: (2)

I'm sure you'll also have a number of folks chime in on this too.... My personal opinion is that if you have to ask this question and have the financial debt and barriers you seem to have, this purchase isn't the best thing for you, no matter how much you might want the car. Get something you can better afford now and get this later when your debt is behind you.

mjeds

see my above post. banks pull a 7-10 year history, you are talking 4 years ago.

the free reports like credit karma only show you a rolling 37 month report. the delinquencies will stay on your report for 7-10 years regardless of whether they are settled, paid, or closed. the history is the history. paying of a debt that you were delinquent on doesn't negate the fact your were delinquent, it just shows you paid it off.