topic Re: Does opening a new card hurt chances at auto loan approval? in General Credit Topics

Does opening a new card hurt chances at auto loan approval?

Reviewers — Thu, 10 Feb 2022 15:20:32 GMT

I have recently gotten approved for a Chase Sapphire Reserve. As I bank with chase and have wanted this card, I would love to accept the offer. Especially since it has a minimum limit of $10k on the card which would help my total card utilization and be helpful in the future. I'm looking at financing a $40k-50k car with possibly putting a $10k-15k down payment. I have prior financing history with cars such as Nissan GT-R, Mercedes C63 and other cars which I have paid the loans in full with 0 late payments. Would I hurt my chances of getting a auto loan if I accepted this credit card offer? Which choice is smarter, 1 or 2? Thank you.

1. Accept CSR --> Get auto loan
2. Get auto loan --> Accept CSR

Re: Does opening a new card hurt chances at auto loan approval?

cashorcharge — Thu, 10 Feb 2022 05:01:19 GMT

Not sure if the scores in your signature are current but if you're stating you've previous had auto loan/lease accounts for cars in excess of $80k and now you're looking at a $50k auto loan with 20% down....I don't think getting the CSR today then the auto loan would be bad decision. Unless I'm missing something or you've omitted other factors leading to your scores such as other dings, I don't see a concern.

Re: Does opening a new card hurt chances at auto loan approval?

Reviewers — Thu, 10 Feb 2022 05:36:31 GMT

@cashorcharge The scores in my signature are current, I had actually updated my sig earlier. Yes, that's exactly what I'm saying. I just didn't want to accept the offer and worry about getting denied for the auto-loan as I'm looking to get a new vehicle soon. Between both of my prior vehicle finances it was $120,000 between both of them.

Re: Does opening a new card hurt chances at auto loan approval?

cashorcharge — Thu, 10 Feb 2022 05:43:11 GMT

@Reviewers wrote:
@cashorcharge The scores in my signature are current, I had actually updated my sig earlier. Yes, that's exactly what I'm saying. I just didn't want to accept the offer and worry about getting denied for the auto-loan as I'm looking to get a new vehicle soon. Between both of my prior vehicle finances it was $120,000 between both of them.

Got it. Typically, auto loans are not as restrictive when it comes to recently getting a credit card or have as many rules though your EX and EQ scores are under 700, that doesn't preclude you from getting an auto loan, you may just pay more in interest or money factor on the lease. Depending on the FI you get the auto loan from....a captive bank from a manufacturer...some do pull TU but perhaps not exclusively. I guess it boils down to your timing of "real soon" like this weekend or within 60 days.

Re: Does opening a new card hurt chances at auto loan approval?

Reviewers — Thu, 10 Feb 2022 05:50:52 GMT

If I was to accept the card offer today for example, I would be trying to get into the vehicle within the next 60-90 days. What do you think is my best choice? Appreciate the quick responses btw @cashorcharge

Re: Does opening a new card hurt chances at auto loan approval?

cashorcharge — Thu, 10 Feb 2022 05:56:36 GMT

I would get the card now if it were me. The small auto loan and large down payment is helpful. If qualifying for the car you have heart set on today is within reach, the approval with a sizeable down payment would not typically get declined from a new Chase CC

Re: Does opening a new card hurt chances at auto loan approval?

SouthJamaica — Thu, 10 Feb 2022 14:04:02 GMT

@Reviewers wrote:
I have recently gotten approved for a Chase Sapphire Reserve. As I bank with chase and have wanted this card, I would love to accept the offer. Especially since it has a minimum limit of $10k on the card which would help my total card utilization and be helpful in the future. I'm looking at financing a $40k-50k car with possibly putting a $10k-15k down payment. I have prior financing history with cars such as Nissan GT-R, Mercedes C63 and other cars which I have paid the loans in full with 0 late payments. Would I hurt my chances of getting a auto loan if I accepted this credit card offer? Which choice is smarter, 1 or 2? Thank you.

1. Accept CSR --> Get auto loan
2. Get auto loan --> Accept CSR

Yes you would hurt your chances, and probably your interest rate as well. There isn't the slightest doubt that your better option is to get the auto loan first.

However, it's very possible that getting the auto loan would lower your scores and thus hurt your chances for an approval on the CSR. So once you get the auto loan you might want to wait awhile on the CSR and see if the prequalification comes back.

Re: Does opening a new card hurt chances at auto loan approval?

Yasselife — Thu, 10 Feb 2022 22:52:50 GMT

@SouthJamaica

How long do you recommend to stay in the garden before an auto loan, 6-12mo ok?

Re: Does opening a new card hurt chances at auto loan approval?

SouthJamaica — Fri, 11 Feb 2022 02:19:59 GMT

@Yasselife wrote:
@SouthJamaica
How long do you recommend to stay in the garden before an auto loan, 6-12mo ok?

I don't have a recommendation. I just know that some FICO scores get a nice boost when your age of youngest account hits 12 months.

Re: Does opening a new card hurt chances at auto loan approval?

disdreamin — Fri, 11 Feb 2022 14:53:32 GMT

I opened a new CSP account with Chase and purchased a new vehicle financed through Chase shortly after without issue. However, my FICO 8 scores were all 800+ at the time, so a hit of a dozen points would not impact my financing tier. Had my scores been lower, I'd have taken the approach others are suggesting and secured the auto financing first and then opened the card immediately upon approval for the auto financing, as long as I was willing to take the hits for the pulls and new accounts.

Re: Does opening a new card hurt chances at auto loan approval?

805orbust — Wed, 16 Feb 2022 23:44:04 GMT

@SouthJamaica I'm surprised to hear your answer. I guess I always think if you're gonna apply for multiple credit products, always do Chase first. I guess it would depend on how long those pre-qualifications last. I would not know that answer tho... I jumped on my prequal about a day after you guys told me they were solid.

Ironically my Chase pre-qualification came about 8 weeks after I financed a new car for the Mrs., so technically my experience supports your thoughts. Gotta admit tho, my gut on this one was Chase first, Chase first until I read your post.

I may still be having too much fun with all this however, all talking about dopamine hits and what not 😆

Re: Does opening a new card hurt chances at auto loan approval?

SouthJamaica — Thu, 17 Feb 2022 03:52:45 GMT

@805orbust wrote:
@SouthJamaica I'm surprised to hear your answer. I guess I always think if you're gonna apply for multiple credit products, always do Chase first.

I don't know where that comes from, but you never heard that from me.

I guess it would depend on how long those pre-qualifications last. I would not know that answer tho... I jumped on my prequal about a day after you guys told me they were solid.

Ironically my Chase pre-qualification came about 8 weeks after I financed a new car for the Mrs., so technically my experience supports your thoughts. Gotta admit tho, my gut on this one was Chase first, Chase first until I read your post.

I may still be having too much fun with all this however, all talking about dopamine hits and what not 😆

If getting the Chase card right away is your higher priority then sure, go for it. I assumed that getting the best rate possible on your auto loan would be a higher priority.

Re: Does opening a new card hurt chances at auto loan approval?

805orbust — Fri, 18 Feb 2022 05:34:32 GMT

@SouthJamaica yeah, as I think about it it probably comes from a combination of 5/24 talk combined with conversations of the inquiry sensitivity of Chase being expressed over the years.