cancel
Showing results for 
Search instead for 
Did you mean: 

Cash loan impact prior to auto loan?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Member

Cash loan impact prior to auto loan?

Without unnecessary details, I am taking a low rate cash loan to pay off high rate credit cards ($20k). I also need to turn in my vehicle lease and secure a new one. Both of these need to happen within a few weeks. Which should I do first?

Experian is 680
Auto Fico is 730

I want the best rate for the car but already have a secured rate for the cash loan. I'm worried that if I take the loan now, I won't qualify for the l best lease rates. If I get the car first I'm worried about being denied the loan or increasing my rate.

By doing both if these I will be losing my monthly payments by $400, so it is a good financial decisions to move forward with.
1 REPLY 1
New Contributor

Re: Cash loan impact prior to auto loan?

Its really will impact you on the average age of you're credit folder. My whole thing is that if it pays off all the other debt, and it is the interest rate you will enjoy then I would continue on.

 

I would just wait until you paid off all the credit card debts, and let a cycle happen so when you go to buy you're new car the credit cards will all report a ZERO  balance.

 

 

DTI will be a major impact here. In my experience I have a hard time being approved for anything if my DTI is over 30%.

 

Overall: I would look around at the current going rate for an auto loan.

Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.