topic Re: 25 point drop from my creative auto financing But I expect a bigger drop in Understanding FICO® Scoring

25 point drop from my creative auto financing But I expect a bigger drop

AzCreditGuy — Thu, 02 Nov 2023 22:53:26 GMT

So putting $35k on a credit card for a car and paying some it down to $28k, I expected a bigger drop in my fico scores, but due to my B of A CL being $62k, I am still only using 26% of that cards UTI. I do epect a bigger drop when $15k is transfered to my US bank CC which the UTI, will be at 60%. 0% APR for 8 months and a total of $750 interest will be paid vs what car rates at the current moment. What do you think the fico drop will be after the US Bank transfer?

Re: 25 point drop from my creative auto financing But I expect a bigger drop

Thomas_Thumb — Fri, 03 Nov 2023 01:04:02 GMT

Interesting. Doesn't 28/62 equate to 45% utilization? Usually 29% and 49% are important milestones for card utilizations. Taking your highest card ut to 60% from 45% could drop score 15 to 20 points. What will you before/after aggregate utilization be and what % of cards will be reporting balances?

Re: 25 point drop from my creative auto financing But I expect a bigger drop

SouthJamaica — Fri, 03 Nov 2023 13:29:22 GMT

I'm not sure but don't most car dealers refuse to accept payment by credit card except for the down payment?

Re: 25 point drop from my creative auto financing But I expect a bigger drop

AzCreditGuy — Fri, 03 Nov 2023 20:59:46 GMT

@Thomas_Thumb wrote:
Interesting. Doesn't 28/62 equate to 45% utilization? Usually 29% and 49% are important milestones for card utilizations. Taking your highest card ut to 60% from 45% could drop score 15 to 20 points. What will you before/after aggregate utilization be and what % of cards will be reporting balances?

Currently some cards are paid down to zero but showing balances because of delays for not updating current balances....When it all settles in a month or 2 only US bank will show a balance and UTI be at 60% for that card but overall total credit UTI will be 11% ...I pay off the small balances for the other cards, so they dont show

Re: 25 point drop from my creative auto financing But I expect a bigger drop

AzCreditGuy — Fri, 03 Nov 2023 21:00:19 GMT

@SouthJamaica wrote:
I'm not sure but don't most car dealers refuse to accept payment by credit card except for the down payment?

This one did and also charged me the 4% rate for it lol

Re: 25 point drop from my creative auto financing But I expect a bigger drop

SouthJamaica — Sat, 04 Nov 2023 04:07:08 GMT

@AzCreditGuy wrote:
@SouthJamaica wrote:
I'm not sure but don't most car dealers refuse to accept payment by credit card except for the down payment?
This one did and also charged me the 4% rate for it lol

Well I guess you have to factor that into the cost of this "creative financing".

Re: 25 point drop from my creative auto financing But I expect a bigger drop

AzCreditGuy — Sat, 04 Nov 2023 18:25:16 GMT

@SouthJamaica wrote:
@AzCreditGuy wrote:
@SouthJamaica wrote:
I'm not sure but don't most car dealers refuse to accept payment by credit card except for the down payment?
This one did and also charged me the 4% rate for it lol
Well I guess you have to factor that into the cost of this "creative financing".

I did and even with the BT fee, delivery charge I am still ahead and theres no lien on the title