topic Re: Car Loan Advice Needed in Auto Loans

Car Loan Advice Needed

MrPepperoni — Thu, 13 Feb 2020 18:25:44 GMT

Hey Guys! Need your advice!
So I am trying to buy a car in 2020, will be looking for a loan of around 15k and putting maybe 10k down.
For sure will be above 30% down.
The question is....I am now at 5 months after I opened my last account and I am looking into 1 or 2 other cards to apply like next week.
But this 1 or 2 more new accounts will lower my AAoA... So, let's say if I keep my 2 cards I have at the moment my AAoA will be 1 year in May, if I open 1 account it will be 1 year in August and if I open 2 accounts now AAoA will be 1 year in October.
I was thinking on applying for Citi Costco and Amex BCE on the same day in the end of this month...
Any ideas if this will really distract me from a car loan and lead to a poor rates ?
So the best is to garden with 2 accounts?
I just thought that number of accounts and total CL matters too...but I can't find any confirmation of that. Looks like score and AAoA matters more.

Re: Car Loan Advice Needed

UncleB — Thu, 13 Feb 2020 18:28:01 GMT

Hi @MrPepperoni, I've moved your post to a new thread on the 'Auto Loans' board.

The Garden isn't the best place for the questions you have (we can't discuss apps and new accounts there) and you'll get more exposure here anyway.

--UB

Re: Car Loan Advice Needed

MrPepperoni — Thu, 13 Feb 2020 18:29:41 GMT

Thank you Sir!

Re: Car Loan Advice Needed

MrPepperoni — Fri, 14 Feb 2020 22:34:40 GMT

**bleep**, I didn't get any traction here :/

Re: Car Loan Advice Needed

NimbusIII — Sat, 15 Feb 2020 09:47:51 GMT

What you have currently build is sufficient to get you an auto loan. Saturating your profile with new accounts is going to move you into a higher risk segment and hinder your chances or at best increase your interest rate offers. Secure your auto loan and then apply for additional credit cards.

Re: Car Loan Advice Needed

Mv350 — Sat, 15 Feb 2020 14:28:59 GMT

I would definitely try to secure financing through a local CU or checking a prequal site like the Capital One auto navigator before going to the dealership. I ended up with 14 extra INQ's on my EX alone from the dealership blasting my report out.

Re: Car Loan Advice Needed

KLEXH25 — Sun, 16 Feb 2020 16:58:05 GMT

@MrPepperoni wrote:
Hey Guys! Need your advice!
So I am trying to buy a car in 2020, will be looking for a loan of around 15k and putting maybe 10k down.
For sure will be above 30% down.
The question is....I am now at 5 months after I opened my last account and I am looking into 1 or 2 other cards to apply like next week.
But this 1 or 2 more new accounts will lower my AAoA... So, let's say if I keep my 2 cards I have at the moment my AAoA will be 1 year in May, if I open 1 account it will be 1 year in August and if I open 2 accounts now AAoA will be 1 year in October.
I was thinking on applying for Citi Costco and Amex BCE on the same day in the end of this month...
Any ideas if this will really distract me from a car loan and lead to a poor rates ?
So the best is to garden with 2 accounts?
I just thought that number of accounts and total CL matters too...but I can't find any confirmation of that. Looks like score and AAoA matters more.

Hi OP. I was in a similar position when I was trying to get a car loan. I had a short credit history and only 1 CC with a $300 limit when I came here looking for answers, because I couldn't get any car loan preapprovals to save my life. Unfortunately my car was falling apart and I did not have time on my side. I ended up adding a Discover card ($500) and I joined DCU who offered me a $5k CC and preappoved me for a car loan at around 8%. So it's certainly not impossible and you're in a better position than I was. Do you have any idea where your Auto FICOs are at? If you are only getting the cards now to thicken your profile for the loan, it's not necessary. If you could really use one of those cards now, than I'd say go for just one of them and let it age 6 months. You can probably get a SP CLI on either of those two within that timeframe as well (I got a CLI from Citi at the 3 month mark). Also, with three cards you can play around with AZEO and see how your scores are affected. Aside from that, I highly recommend joining a CU like DCU (if you haven't already) so that when you're ready for your auto loan, you'll have a relationship already established.

*FYI - the dealer ended up getting me a better rate at 6% and then I later refinanced with DCU at 3.49%.

Re: Car Loan Advice Needed

MrPepperoni — Mon, 17 Feb 2020 23:17:55 GMT

Thank you for the info!
I don't know where is my auto FICO scores are at...
How can I check that?

Re: Car Loan Advice Needed

UncleB — Mon, 17 Feb 2020 23:44:30 GMT

@MrPepperoni wrote:
**bleep**, I didn't get any traction here :/

Sometimes it just takes a little time (and patience).

Re: Car Loan Advice Needed

KLEXH25 — Tue, 18 Feb 2020 01:39:23 GMT

@MrPepperoni wrote:
Thank you for the info!
I don't know where is my auto FICO scores are at...
How can I check that?

You can get it from MyFICO (3B report) or Experian like below:

Re: Car Loan Advice Needed

KLEXH25 — Tue, 18 Feb 2020 01:47:45 GMT

Also, another fun fact about DCU, if you join, you can sign up for your free monthly Equifax score (version 5) and possibly get auto approved for car loans, credit cards, etc... Every three months (January, April, July, & October) they will update their offers in the loan suite. This is how I got my refinance....and the best part is it's a SP. They will tell you the rate and amount you're approved for before even accepting as shown below.

Re: Car Loan Advice Needed

MrPepperoni — Thu, 20 Feb 2020 17:50:40 GMT

@KLEXH25 wrote:
@MrPepperoni wrote:
Hey Guys! Need your advice!
So I am trying to buy a car in 2020, will be looking for a loan of around 15k and putting maybe 10k down.
For sure will be above 30% down.
The question is....I am now at 5 months after I opened my last account and I am looking into 1 or 2 other cards to apply like next week.
But this 1 or 2 more new accounts will lower my AAoA... So, let's say if I keep my 2 cards I have at the moment my AAoA will be 1 year in May, if I open 1 account it will be 1 year in August and if I open 2 accounts now AAoA will be 1 year in October.
I was thinking on applying for Citi Costco and Amex BCE on the same day in the end of this month...
Any ideas if this will really distract me from a car loan and lead to a poor rates ?
So the best is to garden with 2 accounts?
I just thought that number of accounts and total CL matters too...but I can't find any confirmation of that. Looks like score and AAoA matters more.
Hi OP. I was in a similar position when I was trying to get a car loan. I had a short credit history and only 1 CC with a $300 limit when I came here looking for answers, because I couldn't get any car loan preapprovals to save my life. Unfortunately my car was falling apart and I did not have time on my side. I ended up adding a Discover card ($500) and I joined DCU who offered me a $5k CC and preappoved me for a car loan at around 8%. So it's certainly not impossible and you're in a better position than I was. Do you have any idea where your Auto FICOs are at? If you are only getting the cards now to thicken your profile for the loan, it's not necessary. If you could really use one of those cards now, than I'd say go for just one of them and let it age 6 months. You can probably get a SP CLI on either of those two within that timeframe as well (I got a CLI from Citi at the 3 month mark). Also, with three cards you can play around with AZEO and see how your scores are affected. Aside from that, I highly recommend joining a CU like DCU (if you haven't already) so that when you're ready for your auto loan, you'll have a relationship already established.

*FYI - the dealer ended up getting me a better rate at 6% and then I later refinanced with DCU at 3.49%.

Hey, I think I will need a car next month. In this case, should I hold on applying for new CC and just get a car loan in March when my last card (CFU) will be 6 months old ? I am standing good at this point you think? Opening a new account will actually hurt more, right?

Re: Car Loan Advice Needed

KLEXH25 — Thu, 20 Feb 2020 21:51:13 GMT

@MrPepperoni wrote:
@KLEXH25 wrote:
@MrPepperoni wrote:
Hey Guys! Need your advice!
So I am trying to buy a car in 2020, will be looking for a loan of around 15k and putting maybe 10k down.
For sure will be above 30% down.
The question is....I am now at 5 months after I opened my last account and I am looking into 1 or 2 other cards to apply like next week.
But this 1 or 2 more new accounts will lower my AAoA... So, let's say if I keep my 2 cards I have at the moment my AAoA will be 1 year in May, if I open 1 account it will be 1 year in August and if I open 2 accounts now AAoA will be 1 year in October.
I was thinking on applying for Citi Costco and Amex BCE on the same day in the end of this month...
Any ideas if this will really distract me from a car loan and lead to a poor rates ?
So the best is to garden with 2 accounts?
I just thought that number of accounts and total CL matters too...but I can't find any confirmation of that. Looks like score and AAoA matters more.
Hi OP. I was in a similar position when I was trying to get a car loan. I had a short credit history and only 1 CC with a $300 limit when I came here looking for answers, because I couldn't get any car loan preapprovals to save my life. Unfortunately my car was falling apart and I did not have time on my side. I ended up adding a Discover card ($500) and I joined DCU who offered me a $5k CC and preappoved me for a car loan at around 8%. So it's certainly not impossible and you're in a better position than I was. Do you have any idea where your Auto FICOs are at? If you are only getting the cards now to thicken your profile for the loan, it's not necessary. If you could really use one of those cards now, than I'd say go for just one of them and let it age 6 months. You can probably get a SP CLI on either of those two within that timeframe as well (I got a CLI from Citi at the 3 month mark). Also, with three cards you can play around with AZEO and see how your scores are affected. Aside from that, I highly recommend joining a CU like DCU (if you haven't already) so that when you're ready for your auto loan, you'll have a relationship already established.

*FYI - the dealer ended up getting me a better rate at 6% and then I later refinanced with DCU at 3.49%.
Hey, I think I will need a car next month. In this case, should I hold on applying for new CC and just get a car loan in March when my last card (CFU) will be 6 months old ? I am standing good at this point you think? Opening a new account will actually hurt more, right?

In this case, yes I would wait. Get the car loan first and then go for the credit card(s).

Re: Car Loan Advice Needed

MrPepperoni — Fri, 21 Feb 2020 16:23:27 GMT

@KLEXH25 wrote:
@MrPepperoni wrote:
@KLEXH25 wrote:
@MrPepperoni wrote:
Hey Guys! Need your advice!
So I am trying to buy a car in 2020, will be looking for a loan of around 15k and putting maybe 10k down.
For sure will be above 30% down.
The question is....I am now at 5 months after I opened my last account and I am looking into 1 or 2 other cards to apply like next week.
But this 1 or 2 more new accounts will lower my AAoA... So, let's say if I keep my 2 cards I have at the moment my AAoA will be 1 year in May, if I open 1 account it will be 1 year in August and if I open 2 accounts now AAoA will be 1 year in October.
I was thinking on applying for Citi Costco and Amex BCE on the same day in the end of this month...
Any ideas if this will really distract me from a car loan and lead to a poor rates ?
So the best is to garden with 2 accounts?
I just thought that number of accounts and total CL matters too...but I can't find any confirmation of that. Looks like score and AAoA matters more.
Hi OP. I was in a similar position when I was trying to get a car loan. I had a short credit history and only 1 CC with a $300 limit when I came here looking for answers, because I couldn't get any car loan preapprovals to save my life. Unfortunately my car was falling apart and I did not have time on my side. I ended up adding a Discover card ($500) and I joined DCU who offered me a $5k CC and preappoved me for a car loan at around 8%. So it's certainly not impossible and you're in a better position than I was. Do you have any idea where your Auto FICOs are at? If you are only getting the cards now to thicken your profile for the loan, it's not necessary. If you could really use one of those cards now, than I'd say go for just one of them and let it age 6 months. You can probably get a SP CLI on either of those two within that timeframe as well (I got a CLI from Citi at the 3 month mark). Also, with three cards you can play around with AZEO and see how your scores are affected. Aside from that, I highly recommend joining a CU like DCU (if you haven't already) so that when you're ready for your auto loan, you'll have a relationship already established.

*FYI - the dealer ended up getting me a better rate at 6% and then I later refinanced with DCU at 3.49%.
Hey, I think I will need a car next month. In this case, should I hold on applying for new CC and just get a car loan in March when my last card (CFU) will be 6 months old ? I am standing good at this point you think? Opening a new account will actually hurt more, right?
In this case, yes I would wait. Get the car loan first and then go for the credit card(s).

One last question...how does car loan HRs count as one HP? Cause I saw people here with like 50+ inq from car loan hunting and so banks look at it as 1 HP when you apply for new CC in the future? How does that work?

Re: Car Loan Advice Needed

KLEXH25 — Fri, 21 Feb 2020 16:56:39 GMT

@MrPepperoni wrote:
One last question...how does car loan HRs count as one HP? Cause I saw people here with like 50+ inq from car loan hunting and so banks look at it as 1 HP when you apply for new CC in the future? How does that work?

Ok, so if you decide to shop for the best auto loan rate, you will need to apply with multiple lenders and you will acquire multiple HPs to see their offers and rates. If you keep this within a 2 week window, the FICO algorithms are supposed to take this into account when it comes to scoring and you won't be penalized as much. So 8-10 HPs from banks for an auto loan will result in less of a drop compared to 8-10 HPs for credit card applications. HOWEVER, each individual HP will still show up. This is where I was originally confused, because when I let the dealer run my information, all of the HPs still showed up on my credit reports, and it didn't always list it as an auto loan inquiry. But supposedly, it will be taken into consideration.

I did not apply for any credit cards after my auto loan, but any bank running your application should be able to see clearly that you were going for an auto loan. In the end, it's worth trying to get the best rate when it will save you money. If I had just stopped at my first approval with DCU, I wouldn't have saved 2% more in interest!

*ETA - if you click or hover over the inquiries in my signature, I list how many of my inquiries are from auto loan shopping vs. other types of inquiries.