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Risk of App spree??

Valued Member

Risk of App spree??

I am itching to go on an App spree but I just financed a vehicle 4 days ago. 

 

I am fearful that applying for a credit card (or 3) will make the deal unwind. I was told it was a done deal and I have the vehicle but I don't want to risk it.

 

At what point am I safe to apply for a CC without running the risk that the bank backs out of my loan?


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Message 1 of 7
6 REPLIES
Established Contributor

Re: Risk of App spree??


Siobhanmairead wrote:

I am itching to go on an App spree but I just financed a vehicle 4 days ago. 

 

I am fearful that applying for a credit card (or 3) will make the deal unwind. I was told it was a done deal and I have the vehicle but I don't want to risk it.

 

At what point am I safe to apply for a CC without running the risk that the bank backs out of my loan?


If it's a done deal you should have nothing to worry about.  However if you financed it through Barclay's they may shut it down if you app for more credit hahahahaha just kidding.

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Message 2 of 7
Valued Contributor

Re: Risk of App spree??

Car loans aren't as intensive as mortgages, where a lender will consistently be checking your report until you close on the house...the car loan is a done deal, so you should be fine on your app spree Smiley Happy Unless you open a whole bunch of accounts and default on them, the lender likely won't step in.

 

What you should consider is the # of inquiries you received because of that car loan...though they are usually grouped up and counted as 1 inquiry in your FICO score if done in a certain number of days, some lenders may question it and it may result in a manual review of your report...

 

Hope that helps! Smiley Very Happy


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Message 3 of 7
Valued Contributor

Re: Risk of App spree??

Congrats on the auto loan!  I'd wait for the app spree until your scores are higher.  You'd likely get a lot of inquiries and not many approvals with your current score.  Auto loans (installment) are different than credit cards (revolving).  No bank is likely to "back out" of a loan - unlike some credit cards that might shut you down if they see something they don't like. 

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Message 4 of 7
Frequent Contributor

Re: Risk of App spree??

I would say if you have a Barclays card, be careful, other than that, I would stick to 4-5 at most. Don't go crazy.

Message 5 of 7
Valued Contributor

Re: Risk of App spree??


android01 wrote:

Congrats on the auto loan!  I'd wait for the app spree until your scores are higher.  You'd likely get a lot of inquiries and not many approvals with your current score.  Auto loans (installment) are different than credit cards (revolving).  No bank is likely to "back out" of a loan - unlike some credit cards that might shut you down if they see something they don't like. 


Right, once a car loan or a mortgage is CLOSED, the terms of the contract rule, and the bank cannot back out (which means basically calling the loan in) unless you break those terms, which would not include getting additional credit.  So long as you pay, and don't damage the secured asset, you'll be OK.   (Or if you engage in fraud against the bank of course.  So don't!)

 

With credit cards, in effect the bank is constantly offering you a new loan (unsecured) so they CAN changes future terms (reducing CL, closing the account entirely) if they see something they don't like.

Message 6 of 7
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Valued Contributor

Re: Risk of App spree??


daybreakgonesXe wrote:

Car loans aren't as intensive as mortgages, where a lender will consistently be checking your report until you close on the house...the car loan is a done deal, so you should be fine on your app spree Smiley Happy Unless you open a whole bunch of accounts and default on them, the lender likely won't step in.

 

What you should consider is the # of inquiries you received because of that car loan...though they are usually grouped up and counted as 1 inquiry in your FICO score if done in a certain number of days, some lenders may question it and it may result in a manual review of your report...

 

Hope that helps! Smiley Very Happy


haha My lender pulled once and it was good for 90 days....I kinda got my barclays and walmart during the process..oops lol

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Message 7 of 7