@SantaMar wrote:
My credit is 750. I make 47k a year. I have three credit cards. combined credit of 17600 and combined balances of 2200. My utilization is acceptable. Will throw money towards my balance. I had a term with bmw financial for about 3 years. I was never late an the note was satisfied about 10 months ago.y mortgage payment is 1300 a month.
I believe I will get approved. I'm looking for a 20k approval for 60 month term. I was considering goin to my credit union first but dealerships have competitive rates too. What to do what to do!? What utilizations do dealerships or lenders like to see with auto loans? How bad will my mortgage effect me?
Your mortgage will affect you for sure. How much? ..not entirely sure because it depends on the amount of your house note. I wouldn't worry about this too much, as there is nothing you can do about this (besides payoff your mortgage entirely). That will be the main factor in your debt to income ratio. There is no magic number for utilization, but I think the general consenus is 9% util.
The big question: What do you do?
Well this is a simple question. Apply at your credit union first. They will usually give you a good rate but a firm one. Then go apply at the dealership, tell them you've been approved at your credit union for X.XX% rate. The dealership will try to match or beat your rate. Remember that dealership rates are usually negotiable, so make them beat it even if by a little. Tell them this, "if you can beat this rate by a full percent, I'll give you guys the financing deal...otherwise I'll probably be loyal to my credit union" or something along those lines. Best case scenario, they give you 1% less. Most case scenario they wont give you 1% less, but will give you a better rate than your credit union. Worse case, they match or can't beat and in that case you just go with your credit union. Hope this helps.
