topic How much does 2nd auto loan change APR? in Auto Loans

How much does 2nd auto loan change APR?

jwills1218 — Mon, 10 Sep 2012 21:30:47 GMT

Jan 2011: Approved by Cap1 for 10%

Oct 2011: Approved by Cap 1 @ 17% (My score was actually higher than it was in january, and was told I had to have my wife on the loan. Her scores are lower than mine, but I was listed first) I know my score was 640+ because that's what I needed to be approved for my mortgage on Oct1, 2011.

Decided to trade in the Soul for a Traverse this June. I wasn't on this board So I don't have the exact scores. *Big mistake!* I was approved at 8.99%

In August, my wife and I decided we wanted to trade in the Forte but I was declined but most banks. The only approval I got was 18% and 22%!! Was this due to me recently opening a new loan with Ally?

1. Does a 2nd auto loan impact your APR? (This is what I was told in 2011)

2. building off question 1, Do I need to wait 6 months from the date I purchased the Traverse *June 2012*

3. I have been working hard on my profile and got 2 negatives deleted. I have paid down 1500 in debt. It hasn't reported yet, but the simulator shows a potential gain of 20 points.

4. What should my target score be for the best approvals? If I really pay off my CC debt and keep UTL down the simulator shows over 700 is possible. I just don't now how accurate it is.

Re: How much does 2nd auto loan change APR?

jwills1218 — Mon, 10 Sep 2012 21:36:31 GMT

Forgot to include negative info:

Eq: Shows 6 negative accounts

TU: Shows only 4 negative accounts

I did have 30,60,90, Redeemed repo on my profile from 2008. I then paid that car on time for year and half until it was paid off.

When i Was denied my TU score was 634, I'm assuming my auto enhanced score is lower. Its hard to say because since the time I applied, two other negative accounts have been deleted.

Re: How much does 2nd auto loan change APR?

emptypockets — Wed, 12 Sep 2012 21:01:24 GMT

I don't know how much a 2nd loan would increase your APR, but I think that they look at your overall credit picture (score, DTI, etc). I had one auto loan through my credit union, and financed a 2nd vehicle in 3/12, and was still able to secure 2.9% financing. At the time, my BK was still reporting on my reports, and scores were 705-713. The BK was the only negative item on my reports, and I had maybe 4 INQ's.