Rebounding credit

[brbmake]

Hello! Thank you in advance for any advice y'all offer. Hubby and I have good credit (750+). We have one year left on his truck payment which is 0%. No late/missed payments on anything. We are currently sitting at 37% credit usage and are aggressively paying these off by September at the latest. Hubby wants a motorcycle. Looking at financing one. Not really worried about getting approved. What I am worried about is that I was going to get myself a new car in September when the last of the cards is paid off. I'm just wondering how long it'll take for our credit to rebound after we finance the motorcycle. I don't want to delay the car purchase. Income is no issue. We make over $200k and currently have $16k in credit card debt. His motorcycle will be roughly $15k and the car I want is $42k. Thoughts? We could buy the car now if we had to, but I enjoy having a lot of wiggle room in our budget and that's why I wanted to wait until the cards were paid off. 

[TRC_WA]

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@brbmake wrote:

 I'm just wondering how long it'll take for our credit to rebound after we finance the motorcycle. I don't want to delay the car purchase. Income is no issue. We make over $200k and currently have $16k in credit card debt. His motorcycle will be roughly $15k and the car I want is $42k. 

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I make half that and paid cash for my new bike... $12,000.  Can't comment on the effects of 2 vehicle loans at same time... never done that.  Going by the information you gave though I'm sure you won't have any issues.

[disdreamin]

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@brbmake wrote:

What I am worried about is that I was going to get myself a new car in September when the last of the cards is paid off. I'm just wondering how long it'll take for our credit to rebound after we finance the motorcycle. I don't want to delay the car purchase. Income is no issue. We make over $200k and currently have $16k in credit card debt. His motorcycle will be roughly $15k and the car I want is $42k. Thoughts? We could buy the car now if we had to, but I enjoy having a lot of wiggle room in our budget and that's why I wanted to wait until the cards were paid off. 

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Why not just have him app for the bike loan and you do the auto loan for your vehicle, that way each of you have just one pull and one new loan reporting?

[brbmake]

He makes way more money than I do. Out of the 210k we make each year, mine is 40k of that. 

[TRC_WA]

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@brbmake wrote:

He makes way more money than I do. Out of the 210k we make each year, mine is 40k of that. 

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Ahhh... more info... and it still doesn't explain your thread title.  You're 750+ with no late/missed payments but your credit is rebounding?  

Anyway... good luck with the bike and the car whichever route you take.  Still shouldn't be a problem with financing.

[brbmake]

Our credit is not currently rebounding. I know when we apply for the motorcycle financing that our credit

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@TRC_WA wrote:

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@brbmake wrote:

He makes way more money than I do. Out of the 210k we make each year, mine is 40k of that. 

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Ahhh... more info... and it still doesn't explain your thread title.  You're 750+ with no late/missed payments but your credit is rebounding?  

Anyway... good luck with the bike and the car whichever route you take.  Still shouldn't be a problem with financing.

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will take a hit. I was wondering how long that "hit" will impact our credit so that when we go to finance our car it'll have bounced back. Does that make sense?

[disdreamin]

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@brbmake wrote:

Our credit is not currently rebounding. I know when we apply for the motorcycle financing that our credit will take a hit. I was wondering how long that "hit" will impact our credit so that when we go to finance our car it'll have bounced back. Does that make sense?

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It'll take a while, if my experience is anything to go by. I app'd for a new auto loan last August (2 pulls done) and my scores have yet to significantly rebound. The new loan, plus the fact that the balance on that loan is high compared to the original amount, are both hurting my scores. I am sure it is very profile-dependent though, so perhaps others with more insight will chime in.

As far as the loans themselves, I know you mentioned disparate incomes. Would it be possible for you to do the bike loan and DH to do the car instead? Maybe that would minimize the hit to each of your scores. That's what my SO and I did last summer when we bought two new vehicles within a week. It didn't seem to make sense for both of us to take two hits. My scores are already lower than I'd like, so I am grateful to not have the other pull/loan on my report.

[TRC_WA]

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@disdreamin wrote:

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Would it be possible for you to do the bike loan and DH to do the car instead? Maybe that would minimize the hit to each of your scores. That's what my SO and I did last summer when we bought two new vehicles within a week. It didn't seem to make sense for both of us to take two hits. My scores are already lower than I'd like, so I am grateful to not have the other pull/loan on my report.

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I was going to suggest the same thing given the differences in income.   That is what makes the most sense to me.

[MauiMan85297]

I don't think you have a problem with your income if you did your car now or later especially if most debts on your CR are jointly.  When looking at credit as a solo buyer and lets say it shows you're obligated to pay $3,000 per month but yet you're gross is $3333 per month- if the payments are being made on time they can see their must be other income coming in to pay those bills as most accounts would show "joint".

As far as the impact of rebounding points, when you're 750+ it won't affect you rate wise- happy car hunting!

[disdreamin]

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@MauiMan85297 wrote:

I don't think you have a problem with your income if you did your car now or later especially if most debts on your CR are jointly.  When looking at credit as a solo buyer and lets say it shows you're obligated to pay $3,000 per month but yet you're gross is $3333 per month- if the payments are being made on time they can see their must be other income coming in to pay those bills as most accounts would show "joint".

As far as the impact of rebounding points, when you're 750+ it won't affect you rate wise- happy car hunting!

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Does that depend on the lender? I had an issue going through a CU once solo since the mortgage was joint - they wanted SO to app with me or they were going to count the entire mortgage payment as part of my DTI. I didn't want SO to app with me as the vehicle was a gift/surprise. In the end, I got the financing alright, but I don't know if OP might run into a similar issue if there are joint debts that might come up as part of the application process.