Auto Loans

[rross]

If I consolidate some high interest loans (which would drop my monthly payment by $200), how would that affect an auto loan in the near-future? (Like within 3 months of getting the consol. loan)

I'm sure the lower monthly payment obligations would look better, BUT would it raise a red flag that I recently opened a new loan?

[ImprovingYouth]

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rross wrote:

If I consolidate some high interest loans (which would drop my monthly payment by $200), how would that affect an auto loan in the near-future? (Like within 3 months of getting the consol. loan)

I'm sure the lower monthly payment obligations would look better, BUT would it raise a red flag that I recently opened a new loan?

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It will lower your DTI ratio, thereby increasing the amount you can be loaned, however the new loan will lower your AAoA and decrease your credit score.

[pizzadude]

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rross wrote:

If I consolidate some high interest loans (which would drop my monthly payment by $200), how would that affect an auto loan in the near-future? (Like within 3 months of getting the consol. loan)

I'm sure the lower monthly payment obligations would look better, BUT would it raise a red flag that I recently opened a new loan?

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Also you need to be careful in terms of how the loans are affecting your revolving utilization.    Are they reporting as installment loans or revolving ?     You don't want to drastically increase your revolving utilization as it could negatively impact your FICO score.

[Jutz]

Also need to know what your scores are at, what kind of loans are being consolidated, where you're getting the consolidation loan, etc.