@Anonymous wrote:
@I opened an account at my local credit union about a month ago, and was told they can do a lot better than my current auto loan (Citifinancial @ 15%). I gave the LO my credit scores and he stated based on that I can be approved at a rate around 5-7%. After so many years of bad credit I'm afraid to take the chance of seeking new credit and being denied. Any idea of how much I can expect my score to drop because of this inquiry and potentially new account? Also, how long does it take for scores to rebound?
Thanks in advance for your response?
The answer depends on a lot of factors but the impact will probably be minimal. Maybe someone with more knowledge and experience than I might have a different opinion.
However, the difference between a 5% and 15% loan is significant. The difference in total interest expense between a $20,000 five-year loan at 5% and one at 15% is over $5000. Might be worth the credit score hit.
