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Auto Loan approval odds

Bluefooted
Frequent Contributor

Auto Loan approval odds

I would like to purchase a new vehicle for my wife.

I have used my credit union for all of my auto loan financing over the past 8 yrs.

I have 2 open auto loans with them right now.

I only owe $1400.00 on my wifes present car.

 

Question:

Should I pay that one off completely before applying for a new auto loan with them ?

 



Dont wait for it to happen, Make it happen !
3 REPLIES 3
sccredit
Valued Contributor

Re: Auto Loan approval odds

Paying off the one would likely improve your chances for another. 

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, Comenity MC $4,900
Infiniti Financial Lease (Ends 11/2021
California Coast CU Auto Loan $36k 2.48%

Goal: New Mortgage 3/2022
Message 2 of 4
incognitony
Regular Contributor

Re: Auto Loan approval odds

I would just ask them and see how they would like for you to proceed.

Message 3 of 4
Loquat
Moderator

Re: Auto Loan approval odds

If everything else on your reports are in order having then loan open shouldn't make that much difference since the balance is extremely low.

Some lenders may care about the amount of open autos but for the most part, lenders care about utilization and debt to income ratio and owning $1400 isn't enough to worry about if the income is right.
Message 4 of 4
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