Whats worse a low credit score (486) with higher income or a higher credit score with very very low income?
For an auto loan about 24,000 plus 4,000 negative equity
Public Comments
- Neither are a good scenario. With the lower credit you'll have a harder time getting approved - and with a low income you'll again have a hard time getting approved. We need more details on what income's you are referring to and what high credit score you're looking at.
- If you're applying for a loan, the credit score counts for more than the income. Your income might be devoted to all sorts of things - debt, rent, tax, etc - so the higher income might not reflect more disposable income available to pay this extra expense. Your credit score tells the loan officer how likely you are to pay back the loan, and a low score makes them less likely to give you a good deal.
- Well, I'm sorry to tell you, neither. I have helped customers with both situations, and neither will get approved. The low credit score holds too much risk to the financial institution, and the low income will automatically get denied by loan underwriters, because they will see no way to repay the loan. If you have to have an answer, I would apply jointly, and ask your banker to put a request in for the underwriter to use the higher credit with the other income. (if you are talking about two people)
- Well you either have one or the other, you can't have both of those conditions at the same time. A 486 credit score is VERY BAD. Even if you have a huge income, you are going to find it very difficult to get any loan. And the loans you would get would be at a very high interest rate. If you have a low income, you probably won't be able to afford the payments. So even if you had a credit score of 800+ you would still get declined.
- A low credit score is worse. You can find a solution to increase it at http://www.your-credit-solution.com/creditsolutions.htm .
