Lending Club, etc. to help with Auto approval

Discussion in 'Credit Talk' started by Ukley72, Jan 8, 2017.

  1. Ukley72

    Ukley72 Member

    I’m looking to finance or lease a new car, FICO is pretty good, but I’m around 15% from maxed on credit cards. I’m thinking about using Lending Club, One Main, Avant, etc., to consolidate balances, and thereby lower utilization. Would that be useful for getting approved (and better rates) for auto credit?
  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Hey Ukley72- sorry for the delayed response.

    But yes- your credit utilization ratio accounts for a large chunk of your FICO score and ideally you want to be below 10% credit utilization in order to maximize your FICO scores. A private debt consolidation loan can be a great way to make that happen while also saving a large amount on interest. Once the balances are paid down, you should see a pretty significant boost in your scores since it sounds like you're carrying a high CU ratio at the moment. Those higher scores should translate to better rates on the auto loan as well. Let us know how it goes!

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