Need help!

[Anonymous]

So I currently have a vehicle loan with my credit union at a 2.50% Interest rate.  Here's my story, I applied and got a loan for a 2014 Ford Escape last january 2016. I bought this vehicle because it was the best I could do with the money I was making at the time and still be comfortable. Shortly after, in May I got a job making roughly 12,000 more a year than I was at the last job. I am an avid outdoorsman and hunter, and so driving my little ford escape, while it is a nice vehicle also puts me into agony when I am out fishing or hunting, as it just doesnt get anywhere here in Montana if it isnt pavement. I know now that I make enough money to purchase a pickup (2012-2014 F150), but I am a bit worried, as I just applied for and got approved for a Chase Freedom, and Discover IT card, so that I could get rid of my Credit One card, and my fingerhut account which both charge a fee to me, due to my credit being so horrible when i got them. Both accounts are now cancelled (Credit one, and fingerhut) and I am happy with my new cards, and higher CL. I am worried that moving my credit around this much is going to cause issues when i go to apply for a loan. Has anyone ever been in this predicament? I currently only have a balance on my oldest credit card which is a cap1 platinum that was upgraded to a quicksilver. my balance is roughly an 8% utilization rate, so i know my numbers are ok. Will the bank seeing these 2 new cards as a warning that I am looking for credit that I dont need?

[Anonymous]

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@Anonymous wrote:

So I currently have a vehicle loan with my credit union at a 2.50% Interest rate.  Here's my story, I applied and got a loan for a 2014 Ford Escape last january 2016. I bought this vehicle because it was the best I could do with the money I was making at the time and still be comfortable. Shortly after, in May I got a job making roughly 12,000 more a year than I was at the last job. I am an avid outdoorsman and hunter, and so driving my little ford escape, while it is a nice vehicle also puts me into agony when I am out fishing or hunting, as it just doesnt get anywhere here in Montana if it isnt pavement. I know now that I make enough money to purchase a pickup (2012-2014 F150), but I am a bit worried, as I just applied for and got approved for a Chase Freedom, and Discover IT card, so that I could get rid of my Credit One card, and my fingerhut account which both charge a fee to me, due to my credit being so horrible when i got them. Both accounts are now cancelled (Credit one, and fingerhut) and I am happy with my new cards, and higher CL. I am worried that moving my credit around this much is going to cause issues when i go to apply for a loan. Has anyone ever been in this predicament? I currently only have a balance on my oldest credit card which is a cap1 platinum that was upgraded to a quicksilver. my balance is roughly an 8% utilization rate, so i know my numbers are ok. Will the bank seeing these 2 new cards as a warning that I am looking for credit that I dont need?

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It's tough to say how the bank will see the new CCs. In general they treat secured debt like car loans differently than unsecured debt in terms of approvals.  It depends on the strength of your credit, DTI ratio the loan to value of the vehicle your buying etc.  If you have a 2.5% rate with your credit union I would say they see you as a good risk so I would go through them again.  If you can wait a few months before you do this that would probably be better but if you need the truck now then go for it.  Of course the caution on a vehicle that you have had a short time is if you have any negative equity so I would check the payoff of the Escape vs the value so you don't have any surprises.  

[Anonymous]

Luckily I make larger payments than needed, so i have about 3000 in equity if i trade it in. I am waiting on my dealer to find a pickup for me that meets my needs, generally this takes a month or 2, as a lot of their vehicles come from canada, so they have to sit for 30 days before they can be sold in the US. I think I will be ok, but in the meantime I will continue to pay on the loan, and garden the credit.