topic Re: Auto loan or credit card? Which to apply for first? in General Credit Topics

Auto loan or credit card? Which to apply for first?

Anonymous — Thu, 14 Jan 2021 02:49:27 GMT

An unexpected bump in my plans came up. I'll be needing to get an auto-loan (most likely from Navy) in the next 30 days. That would def take away my chances of getting this years $500 SUB on the Flagship I guess.

I'd like to apply for 1 or 2 cards, as i've been gardening (all approvals in 2020 were soft inquiries) for 13 months now. Do I do the auto loan first or the credit card applications?

Re: Auto loan or credit card? Which to apply for first?

Anonymous — Thu, 14 Jan 2021 13:57:01 GMT

@Anonymous wrote:
An unexpected bump in my plans came up. I'll be needing to get an auto-loan (most likely from Navy) in the next 30 days. That would def take away my chances of getting this years $500 SUB on the Flagship I guess.

I'd like to apply for 1 or 2 cards, as i've been gardening (all approvals in 2020 were soft inquiries) for 13 months now. Do I do the auto loan first or the credit card applications?

If the scores in your signature are accurate, I honestly don't think it will matter AT ALL.

Bear in mind most dealerships will let you put a downpayment up to a certain amount (say, $1000) on a credit card . . . .

Re: Auto loan or credit card? Which to apply for first?

Anonymous — Thu, 14 Jan 2021 18:42:19 GMT

Does Navy allow the same hardpull for a CC and autoloan like DCU or penfed. with your scores at this point you can get a cc and Auto loan all together.

Re: Auto loan or credit card? Which to apply for first?

Anonymous — Fri, 15 Jan 2021 05:02:08 GMT

Depends on if opening credit card(s) would lower your scores that the auto lender would use for approval terms across a threshold. If potentially so, you'd want to go for the loan first. If not, it doesn't really matter.

Re: Auto loan or credit card? Which to apply for first?

K-in-Boston — Sat, 16 Jan 2021 00:02:49 GMT

I would suggest always applying for loans prior to applying for other types of credit if you have immediate plans for both. Any changes in your credit report with recent credit-seeking that could have been avoided by waiting until after the loan was approved does have the potential to cost you hundreds or even thousands of dollars over the life of the loan if it does become a factor. Since it's NFCU and you should have no issues qualifying for their lowest rates it likely doesn't matter, but why risk it?

Re: Auto loan or credit card? Which to apply for first?

K-in-Boston — Sat, 16 Jan 2021 00:06:38 GMT

@Anonymous wrote:
Does Navy allow the same hardpull for a CC and autoloan like DCU or penfed. with your scores at this point you can get a cc and Auto loan all together.

Unless something has changed recently, you would receive a pull for the credit card, a pull for the loan, and possibly an extra pull just for asking if they can be combined.

Re: Auto loan or credit card? Which to apply for first?

Anonymous — Sat, 16 Jan 2021 01:19:03 GMT

@K-in-Boston wrote:
I would suggest always applying for loans prior to applying for other types of credit if you have immediate plans for both. Any changes in your credit report with recent credit-seeking that could have been avoided by waiting until after the loan was approved does have the potential to cost you hundreds or even thousands of dollars over the life of the loan if it does become a factor. Since it's NFCU and you should have no issues qualifying for their lowest rates it likely doesn't matter, but why risk it?

@K-in-Boston thanks for your reply.

I did a soft pull prequalification with Toyota Financial who quieried Experian Auto Score 8 and was offered their "top tier" financing; 0.9% for 60mo. I'm just not sure if I want to go through TFS without having any experience with their bill paying/customer service. Is it stupid to apply for Navy? My APR would obviously be higher, but I think i'd sleep better at night. Your input is continually welcomed.

My next available request to increase my limit on a Navy card is 1/24/21, should I submit that SP request.. or would that take away from my potential auto loan maxium amount?

Re: Auto loan or credit card? Which to apply for first?

K-in-Boston — Sat, 16 Jan 2021 17:54:01 GMT

Since the auto loan is a secured debt, your revolving exposure shouldn't matter. The amount of the loan that you would be approved for depends on the value of the car.

Usually there isn't much interaction with manufacturer financing. When I have done manufacturer financing, it's always been a seamless set up monthly ACH and never think about it again. I like NFCU but 0.9% is almost free money, so I would still strongly consider it.

Re: Auto loan or credit card? Which to apply for first?

Anonymous — Wed, 10 Mar 2021 16:44:05 GMT

@Anonymous wrote:
Does Navy allow the same hardpull for a CC and autoloan like DCU or penfed. with your scores at this point you can get a cc and Auto loan all together.

When I was there at NFCU In Person wanting to do a SSL and CC App same visit, she told me it would be two HP's. They would not do both under the same HP. Albeit, this was for an SSL and CC, not an Auto Loan and CC. 🙏🏻