Looking for auto loan, should I open a new card?

[vizon]

I am going to need an auto loan come spring. The only thing I have are 2 cards. One is 3 years old and is a BOA with a $500 limit (one 30 day late in mid 2010) and a JC PENNEY card with a $230 limit. They are both paid off with 0 balance. I feel like this is ridiculous having less than $1000 in credit and I should probably get another card to be more realistic when applying for an auto loan. I am sure BOA will up my limit, but I mean is that worth asking them to do? Is it worth a hard pull? Or should I apply for a new Chase card and work on that?

[llecs]

Increasing your CL will not improve your score. It's how you use that CL that counts. Now come app time, I'd let a buck or two report on one card only vs. all $0s. I've seen posters with a combined CL of under $1000 who had scores over 800. I've also seen posters in here with FICOs in the 800s with only 2 CCs.

[vizon]

Do you suggest I keep money on them? Because, on the BOA I have been trying to charge like a small fast food meal, then paying it off at the end of the month. Should I leave that money on there and pay interest or what?

[Anonymous]

Let the cards report balance below 9% and PIF. Thsi does not mean you cannot use these cards. But make sure that the amount reported does not exceed 9%. This strategy has worked for many of us here on this forum. Hope this works for you and helps you getting a boost. Also seeing heavy usage will help you in getting a CLI from BoA CC (I have experienced this).

[vizon]

Well, my score is Equifax FICO 672 right now with 26% util. The cards have since been paid off, just waiting for an update to the CRA's. I assume I will be near 690.

My question here, if I apply and get a new card will this bring my score done for several months? I plan to buy a car in 3-4 months but the JC Penney card will likely go unused. Also, the JC Penney card is scored as less of an account, I read, since it is just a store card and not an actualy visa or mastercard. That is why I was thinking about another.

Ideally, I will be over 720 within 12 months, but of course I need a car before then without an outrageous interest rate. I think I can get to 690 in time with the estimator showing it possible, which 5% is a decent enough interest rate. I have some hard pulls I am working on having removed as well, which might boost me a few points.

So, is a new card a good option? I was looking into Chase Freedom, which I may have to recon but we will see. Of course I would wait until my new score updates (showing the accounts new util)  as I have just subscribed to the FICO score watch, which updates weekly to my knowledge.

[Anonymous]

---

@vizon wrote:

Well, my score is Equifax FICO 672 right now with 26% util. The cards have since been paid off, just waiting for an update to the CRA's. I assume I will be near 690.

My question here, if I apply and get a new card will this bring my score done for several months? I plan to buy a car in 3-4 months but the JC Penney card will likely go unused. Also, the JC Penney card is scored as less of an account, I read, since it is just a store card and not an actualy visa or mastercard. That is why I was thinking about another.

Ideally, I will be over 720 within 12 months, but of course I need a car before then without an outrageous interest rate. I think I can get to 690 in time with the estimator showing it possible, which 5% is a decent enough interest rate. I have some hard pulls I am working on having removed as well, which might boost me a few points.

So, is a new card a good option? I was looking into Chase Freedom, which I may have to recon but we will see. Of course I would wait until my new score updates (showing the accounts new util)  as I have just subscribed to the FICO score watch, which updates weekly to my knowledge.

---

Definately score will come down for some time due to inquiry but if is difficult to guess the exact impact.

Can you provide a better picture of your credit profile and may be some one here might have better suggestion or must be in similar boat and can share their experience

[vizon]

Well, I have two cards. The JC Penneys and BOA. Had a 30 day late on both in summer of 2010. Working on Goodwill deletes, but we will see. BOA has a $500 limit, JC Penney has a $230 limit. Both carry a $0 balance. I want a real credit card though, I'm sick of the stupid BOA limit and I will never use the Penneys again, well until I get my new apartment soon.. It was used for a bed, just to build some credit worthiness.

The BOA is 3 years old, while the Penneys is 2.5 years old. Thats all there is to my credit.

[Anonymous]

Have you asked any of your current lenders for a CLI? If not do that but be very very clear that you do not want them to pull your credit report and get an unnecessary inquiry.

Also while you have BoA for 3 years than how come you didnt had any CLI's. Normally I try for a CLI every 6 months and all of those were without any hard pulls. I went from 300 to 7500 in 5 years. I try 500 to 1000 jump at one time.

[Kayo]

Having a fresh new card with a $1000 or even $3000 limit isn't going to change the banks mind on an auto loan unless it's been open for some time.

You have a negative 30 day within the last 2 years. That's going to be your biggest problem, if anything.The only other issues is you don't have any existing large balance loans. The banks might not wan't to give you a large loan about, but you should have no problem getting a car loan under $25,000. I've seen it done with almost no credit.

But just to give you an example. I've had a Capital One Card for a few years now. I had a $30K auto loan with them. I totaled the car, went back 2 months later to purchase another car with a $34K auto loan and they turned me down with even a higher credit rating. Both 20% down purchases. Banks are crazy. It sounds like you just want a credit card, which I understand. Wait til you get your car then apply for a credit card afterwards...

[jules79]

in my own personal case.yes i did increase my EQ FICO SCORE FROM 714 TO 738. i opened a barclays cc last month with a limit of 1300. and i was in the same predicament as you...2 small cc limits of 500.00 each opened in 05/2011 and a authorized user on a cc with a limit of 2500.but of course i cant guarantee you the same results and im purchasing a car in 30-45 days