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Car Loan Advice Needed

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New Contributor

Car Loan Advice Needed

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.

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Goal Cards:

Car Loan in 2020
House Loan in 2022



Message 1 of 7
6 REPLIES 6
Highlighted
Moderator

Re: Car Loan Advice Needed

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. Smiley Wink

 

--UB

Message 2 of 7
Highlighted
New Contributor

Re: Car Loan Advice Needed

Thank you Sir!

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Goal Cards:

Car Loan in 2020
House Loan in 2022



Message 3 of 7
Highlighted
New Contributor

Re: Car Loan Advice Needed

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

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Goal Cards:

Car Loan in 2020
House Loan in 2022



Message 4 of 7
Highlighted
Regular Contributor

Re: Car Loan Advice Needed

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.  


Dec 19

Message 5 of 7
Highlighted
Established Contributor

Re: Car Loan Advice Needed

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. 








Message 6 of 7
Highlighted
Established Contributor

Re: Car Loan Advice Needed


@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%.



February 2020:

Stats:
Message 7 of 7
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