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Hard Inquiry -or- Increased Debt Utilization?

New Member

Hard Inquiry -or- Increased Debt Utilization?

I'm preparing to apply for auto loans next month, but desperately need a new computer. Low on cash, so I thought I'd take advantage of Apple's Barclay financing and pay no interest for a year. However, that would also obviously add a hard inquiry to my report. I have one other that is 10 months old.

My other option is to put the computer on my CC (Chase Sapphire). This would bring my credit utilization up to 30% of $8000. I had some major expenses two months ago and this is the first time in my life I've ever carried a CC balance.

So, when applying for auto loans, what looks "worse"? A recent hard inquiry? Or 30% debt utilization?

P.S. Third option, I suppose - dip into my emergency fund and have no debt, no hard inquiry - BUT also no emergency fund for at least three months until I could build it back up. (I have a steady job, but this option terrifies me)
3 REPLIES
Valued Contributor

Re: Hard Inquiry -or- Increased Debt Utilization?

Can you get by with a cheap computer for awhile? You can find something functional for a few hundred bucks.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
New Member

Re: Hard Inquiry -or- Increased Debt Utilization?

Thanks, that might be what I have to do, even if its not what I wanted!
Valued Contributor

Re: Hard Inquiry -or- Increased Debt Utilization?

While getting by with the cheap computer. Set aside a savings for a new one. Put some extra money into it each paycheck. Then after a year or so, you will have the money to make the purchase on your chase card and pay it off within the month.

 

Plus, in a year the computers will be even better than they are now. Best thing to do with a computer purchase is wait Smiley Happy

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%