Want to App 3 CC's - better to do it before or after Applying for New Auto Loan?

[Anonymous]

I will be apping for new car loan($40k) in next few weeks but want to APP for 3 CC's after Dec 14th and wondering if I should app for the CC's before I start the auto loan process...... 

Last March I had grabbed a 5/3rd and HSBC credit cards to utilize thier 0% purchase for some home repairs to do over the summer but unable to start project until Oct and then weather turned fast so have postponed until March again but those intro offers will expire and have just SD'd the new cards.

Want to get 2 similar ones like Bank of America Cash Rewards / Wells Fargo or US Bank Visa Plat with 18mth 0% apr if I would even

qualify w/ USB.   

Also wanted to app 1 AMEX card - I got the AMEX Rose Gold Charge Card last December but never get any offers or see anything under pre-qualify for AMEX at all and would like to try for at least 1 AMEX credit card at my 1yr date w/ them to take advantage of potential 3X Cli.

Trying to weigh pro/con of getting hit with numerous HP's once I apply for auto loan VS. apping for 3 CC's first but hurting scoring on the auto loan apps....... ?????? 

 (Experian Fico Auto scores in low 730's)

**** Was given a pre-qualify of $50k by Cap 1 Auto-Navigator and thinking about apping with Navy Fed or DCU first for Auto Loan but wondered if I should wait until 3 INQ's fade past 1 Yr on Dec 14th on all 3 CBA's before I start the loan process

INQ's are all at 0/6     --  EQ and EX will be 3/12 and TU will be 2/12 on Dec 14th.  

Next week I will be at AZEO at 8% Util and all 3 scores have just increased to EX 725    EQ  739  TU 730ish

AoOA is 19 yrs.  AAoA is about 6 yrs.  AoYA at 7 months 

1 Negative - 1 30 day late Cap1 in 2015

No  loans since mortgage and current auto were paid off in 2006 until I did Self-Lender loan last April.

Monthly expenses approx $450-650 month  - Employed since 1997 at $98k yr.   (*** Caveat - currently on work comp)

EXPERIAN updated 11-27-19                          EQUIFAX 11-27-19                              TU 11-7-19

FICO Score 8 = 760/725 (was 701)                    FICO Score 8= 739 (was 701)              FICO Score 8 = 813 / 713 

                                                                                                                                                hasn't updated yet 

FICO Score 2(mortgage) = 734/728                   FICO Score 5           -749                                                                              

FICO Auto Score 8 = 766/726                                                                 754

FICO Auto Score 2 = 737/731                                       Auto Score 5 - 773

FICO Bankcard Score 8 = 793/741                     Bankcard Score 8    751

FICO Score 3 = 740/734                                       Bankcard Score 5   767

FICO Bankcard Score 2 = 719/709

FICO Score 9 = 723                                                                          751

FICO Auto Score 9 = 724                                                                752

FICO Bankcard Score 9 = 732                                                       761

[Anonymous]

Auto loan first. You want the best score for the best rate.

[AllZero]

Agreed with the above.

I would also recommend joining a credit union and getting your auto financing approved ahead of time. Then you can go crazy with the CC apps.

[Anonymous]

Yeah, no doubt auto first, but as @AllZero said, go get your financing before you go to the dealership. Otherwise you will get screwed.

Plus, keep in mind, auto HPs are buffered for 30 days!!! So, that means you can grab your cards before the auto loan hits your CRs. (speaking of which, we no nothing of your profile to even predict IF the auto loan would have an effect on score.)

SO, go get financing, go get car, and less than 30 days from the financing HP, app for cards. In this way, you'll use your best scores for both!

Remember, if you have multiple HPs for loan, they are de-duplicated for scoring purposes for most algorithms if within 45 days of each other. (Exception: EX2 is only 14 days.)

Good luck, report back.

[Anonymous]

Thx for the quick replies.....

"Plus, keep in mind, auto HPs are buffered for 30 days!!!"

    ----Not exactly sure what that means -  that the auto HP's are "paused" ???

"speaking of which, we no nothing of your profile to even predict IF the auto loan would have an effect on score"

  ----Thank You - I should have filled in more of my file and will update accordingly but I am not sure what you mean by - "predict if the auto loan would have an effect on score" 

-  I assumed all loans and loan apps would have an effect on score but could assume wrong - havent had a car loan since last one was paid off in 2005

[Anonymous]

Ok, definately have my answer now about future CC apps!

On the auto loan App - probaly checking out Navy Fed or DCU first and then maybe Chrysler Fin for Jeep $40k loan - was pre-qualified by Cap1 Auto-Navigator for $50k.  Would I see significant benefit by waiting until Dec 14th when my 3 INQ's from last DEC fade past 1 year before initiating loan apps? 

Not sure what 3 INQ's can do to score in my range - had no INQ's at all prior to last December.

[Brian_Earl_Spilner]

Not sure what he means by buffered, either. The inq will be grouped as 1 ding for between 14-30 days depending on scoring model, but they show up immediately. Best option is to minimize auto apps to decrease the chance of needing to recon as any algorithm will count the inq regardless of impact on score. As to whether an auto loan will affect your score, it will. The question is whether the inq, decrease in AAoA, and AoYA reset will be offset by any boosts like carrying an installment loan if you didn't already have one. There's also the question of what kind of impact it will have on your DTI ratio. Not sure how BofA and others will react to a new loan and DTI increase, but some lenders like NFCU will definitely take it into consideration.

[Anonymous]

Thank you  -  the more info I can obtain the better informed/prepared I will be in the next few weeks!

[Anonymous]

---

@Brian_Earl_Spilner wrote:

Not sure what he means by buffered, either. The inq will be grouped as 1 ding for between 14-30 days depending on scoring model, but they show up immediately. Best option is to minimize auto apps to decrease the chance of needing to recon as any algorithm will count the inq regardless of impact on score. As to whether an auto loan will affect your score, it will. The question is whether the inq, decrease in AAoA, and AoYA reset will be offset by any boosts like carrying an installment loan if you didn't already have one. There's also the question of what kind of impact it will have on your DTI ratio. Not sure how BofA and others will react to a new loan and DTI increase, but some lenders like NFCU will definitely take it into consideration.

---

What I mean by buffered is they do not affect score for 30 days, to allow rate-shopping. They will appear, but the scoring algorithm will not score them until 30 days after the first one. Well documented. The de-duplication window is 45 days, except EX2 which is 14 days.

Whether and to what degree the loan will affect score does depend on many factors. The effect could be minimal. The inquiry could be binned and have no ding. The decrease in AAoA will only have an impact if a threshold is crossed. As I said earlier, we lack sufficient info.

Installment loans do not reset AoYa it appears.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/New-loan-awards-quot-clean-aged-thick-no...

Last, does he have other loans, to consider aggregate changes potentially crossing thresholds.

And OP, to answer your question about how many points for the inquiries...LOL, depends on scorecard and we don't know your profile. Could be anywhere from 3-17 points.

[Anonymous]

I went back and re-read. I apologize, you did give most stats. I would expect unbinned inquiries to be 3-5 points on your scorecard.

The loan may bring you across an AAoA threshold, loss of 3-5 points, again, roughly. AoYA penalty still in effect for another 5 months because AoYA is 7 months.

You've had loans, so mix isn't implicated.

If you can wait 5 months, until your AoYA turns 12 months, you'll get a boost across Version 8 at least.

Either way, use the order I said to maximize score.