Need advice on auto loan

Anonymous · ‎08-04-2016

I am new to the forum! Sorry if it is in the wrong area.
Here is the question, should I try to obtain another credit card if I want to get an auto loan in the near future?(a few months or a month).

I am 18, have good credit, all payments on time an one credit card. I only want another to use to get gas back. I also want to try to utilize more than 0% as I do now, which is why I want a 0% Apr card (introductory). I can't decide which could I get some pointers?

Now to the real question! Should I apply before or after? Does it make a huge difference ? Will o get bad Apr on a car loan with my credit? Again I have 6 months, all on time 0% utilization. An boa says I have a 759 fico score. My limit now is only 500

righthererightnow · ‎08-05-2016

Welcome! : )

For each app for new credit you will get DINGED with a Hard pull on your account which will lower your credit score. Also, too many inquiries in the same year makes you look desperate for credit / like a credit risk and will hurt your chances of getting good rates if you do get the car. It depends on how many inquiries you already have on your file, and how much activity that you've done this year... also how close to the car buying period that you do it.

You want to show utilization on your card. 0% looks bad on your record, you want to keep it under 10% but show some utilization.

Also, make sure to check out the auto loan tab, they've got lots of great resources over there too:

http://ficoforums.myfico.com/t5/Auto-Loans/bd-p/autoloans

Anonymous · ‎08-05-2016

Thank you! I have 11 HP an tried to get 6 removed as PayPal put it on my credit profile when I was 16 an they told me they did only one soft pull (I was 16 an didn't know anything an I only said 1). I am looking to get my credit loan this month probably, or next.

StartingOver10 · ‎08-06-2016

@Anonymous wrote:
Thank you! I have 11 HP an tried to get 6 removed as PayPal put it on my credit profile when I was 16 an they told me they did only one soft pull (I was 16 an didn't know anything an I only said 1). I am looking to get my credit loan this month probably, or next.

How old are you now? Those PayPal HP's should be off your reports in 2 years from the time they were pulled.

Anonymous · ‎08-06-2016

18 at the moment

pipeguy · ‎08-06-2016

In addition to a very thin file and very short credit history, you need to look at your income, amount down and payments including insurance. These are the factors a lender is going to look at for a 36-60 month loan and truthfully, at 18 you are not going to get the best rates or terms.

If it was me, I'd work on building a stronger credit profile, increase my limits and buy a car with a "loan" at 21 - I know that's not what you want to hear. I have no doubt that some vulture lender will sell you a a car with a high APR and lots of profit - not worth going there (buy here pay here used car lots aka repo lots).

You also need to look into your state laws, I know some will allow an 18 year old to own and title a car in their name, but manytimes they won't allow it if there is a note/loan until 21 - this varies by states (might no longer apply, I have not checked in a while)

StartingOver10 · ‎08-06-2016

Agree with pipeguy.

In any event, don't even think about applying for a car loan with all those inqs on your report. Sounds like the paypal inquiry's are ready to drop off any time now since you got them two years ago.