Is it better to apply for one large loan or separate loans?

[Anonymous]

Hello. I will be transfering to an out of state college and will be needing to apply for several loans. One is a student loan, an auto loan for a used car, and a personal loan to have some cash to hold me over as well. After some research I saw that all of these types of loans have different interests rates, and would seem like a better an idea to apply for them separately. I am still number crunching as far as repayment and I'm curious to know where to start. My credit score is 673-699, so averages to about 685. Thanks in advance.

[gdale6]

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@Anonymous wrote:

Hello. I will be transfering to an out of state college and will be needing to apply for several loans. One is a student loan, an auto loan for a used car, and a personal loan to have some cash to hold me over as well. After some research I saw that all of these types of loans have different interests rates, and would seem like a better an idea to apply for them separately. I am still number crunching as far as repayment and I'm curious to know where to start. My credit score is 673-699, so averages to about 685. Thanks in advance.

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Welcome to My Fico

If it were I each loan would be separate, your interest rates are going to be lower on a SL and Auto than a signature (personal) loan. I would check with CUs on the National and local area about the auto loans they have available, you get the best rates from them opposed to banks.

[takeshi74]

Define "better".  Rates should be better on separate loans.  You should generally be able to get better rates on secured (and student) loans versus unsecured.  However, there will be more of a hit to AAoA with multiple and you wil incur more inquiries.

[cdtotten]

Best bet would be to start at a local Credit Union and see what they can do. If you can get it all financed, in house, through them... likely only 1 pull. Auto and SL rates should be fairly low (best credit is around 2% and SLs are around 4.5%), while the personal loan could be 12-20%... depending on your credit and the lendor.

Good luck.