Downpayment or Lower DTI

[christina35]

Hi all, I'm not sure if this question should go here or the Credit Card forum since it pertains to both. 

We are in the market to trade a vehicle in with $5,000 available that we can use towards the downpayment (We just came into this money). However we have high CC DTI as well as too many inquiries on our credit reports (thats a post for another time)

Should we use the $5,000 to lower the DTI on the CC's to about 25% or use the $5,000 as a down payment? My mind is telling me to use the money to lower our DTI because that seems to be the logical reason for a denial.

Thoughts? 

[pizzadude]

Outside of the $5K, how much were you planning to put down on the auto loan ?   Also have you tried to pre-qualify or talked with any bank / CU regarding what you'd qualify for ? 

Reducing your revolving utilization will help your FICO scores but it might make sense to see where you stand with financing options first.

[christina35]

The $5,000 was the only amount we were going to apply towards the downpayment.

I applied for a New Loan mistakenly with NFCU and it was denied. I tried a recon message, they replied back that I needed to call the loan department to put in another loan request for a Used Car Loan and I plan to do that today.

Capital One Auto navigator was denied as well.

We have paid off vehicles using financing in the past with Capital One(2021), Unity One CU (2021), Ally and Toyota(but toyota was many moons ago), I currently have my CR-V financed through Wells Fargo.
I think my issue is knowing how high our DTI's are, I don't want to keep risking hard pulls to add on to the too many that are on our reports. 

[pizzadude]

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@christina35 wrote:

The $5,000 was the only amount we were going to apply towards the downpayment.

I applied for a New Loan mistakenly with NFCU and it was denied. I tried a recon message, they replied back that I needed to call the loan department to put in another loan request for a Used Car Loan and I plan to do that today.

Capital One Auto navigator was denied as well.

We have paid off vehicles using financing in the past with Capital One(2021), Unity One CU (2021), Ally and Toyota(but toyota was many moons ago), I currently have my CR-V financed through Wells Fargo.
I think my issue is knowing how high our DTI's are, I don't want to keep risking hard pulls to add on to the too many that are on our reports. 

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To clarify, DTI would be an issue if you don't have adequate income to support a new car payment in addtion to your other monthly payments.  Are you saying the CC payments  on the $5K are the issue or that you need to improve your score to be improved ?   Is your BK still showing on your reports ?