Increasing credit limit

[Eschaton]

Hi everyone,

I recently bought a car and got really bad interest rate at 4.9%. The finance guy said I should try to get a higher credit limit. I didn't think of it at the time, but I was wondering what is the best approach to doing this?

Thanks

[pizzadude]

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@Eschaton wrote:

Hi everyone,

I recently bought a car and got really bad interest rate at 4.9%. The finance guy said I should try to get a higher credit limit. I didn't think of it at the time, but I was wondering what is the best approach to doing this?

Thanks

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4.9% isn't the worst rate, but assuming your FICO score is over 750 then you could probably beat it.

Is the finance guy is implying that you need a higher FICO score to get a better rate??

[EW800]

Although 4.9 is not great, we have seen WAY worse here. I recall a couple of message where people were trying to figure a way out of a 25% or worse auto loan. THAT would be painful....

[mongstradamus]

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@EW800 wrote:
Although 4.9 is not great, we have seen WAY worse here. I recall a couple of message where people were trying to figure a way out of a 25% or worse auto loan. THAT would be painful....

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it shouldn't even be legal to get stuck in loans that are that high 

[Eschaton]

He said my score is fine, it's just my low credit limit. I have a Chase Freedom at $1000 and a Capitol One at $750. I'm assuming he was implying that. 

My interest rate isn't of utter importance, since I am paying it off within a year. 

He just advised for me to increase my credit limits on my credit cards. I am in college, and I just took a loan from them that I put into another bank account that I'll just return in full when I am done. 

[pizzadude]

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@Eschaton wrote:

He said my score is fine, it's just my low credit limit. I have a Chase Freedom at $1000 and a Capitol One at $750. I'm assuming he was implying that. 

My interest rate isn't of utter importance, since I am paying it off within a year. 

He just advised for me to increase my credit limits on my credit cards. I am in college, and I just took a loan from them that I put into another bank account that I'll just return in full when I am done. 

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Well it wouldn't hurt to increase your CLs, aside from the inquiry that may come along with it, but your auto loan interest rate is based on many different factors ( make, model, income, previous loans negotiation, etc... ).   As you stated it doesn't really matter since you'll be paying it down quickly.   You should qualify for the best rate on your next loan though.

[takeshi74]

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@Eschaton wrote:

I didn't think of it at the time, but I was wondering what is the best approach to doing this?

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Request a credit limit increase from your creditors.  However, your odds of CLI all depend on your credit and income.  If your credit is lacking in one or more areas then you may want to address that first.

[xXIDaShizIXx]

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@EW800 wrote:
Although 4.9 is not great, we have seen WAY worse here. I recall a couple of message where people were trying to figure a way out of a 25% or worse auto loan. THAT would be painful....

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I had a coworker that got a car for 23% because her credit was terrible because of medical collections. I couldn't come to grips with that.

[PedrokiPR]

Hahah 4.9% I wish I would've had that when I opened my second loan on a car. My first loan for a car was when I was 21 years old, now after 7 years it's on schedule deletion on December ! Yaii! Anyways, on May 2012 I financed a car through CNAC (JD Byrider), yeah........................., I have made all payments on time, and I am even a year ahead in schedule. I was approved for a used car (that I love and have really took care) at a crazy rate of 19.99%. So, yeah, I have paid so far on interest over $3.5k and I will finish paying it this October 31st. I can't wait!!! So I saved 1k on interest by paying ahead and no penalty as stated on my contract. Anyway! Good luck, I wish 4.9% would have been applied to me lol