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Will this build my "borrowing" power?


Will this build my "borrowing" power?

Right now, my credit is a joke. I have exceptional payment history, and my score is 730, but I still can't get my foot in the door for the big limits... all my credit cards are toy limits, $300 - $1,500. And they're all crappy starter cards. My credit age is originally 2 years but my grandparents adding me to their credit card as an AU and it increased my credit age to 5 years. So that's a plus. I have 2 paid off personal loans ($1000 and $1500) and I currently have a $1,000 loan with my new credit union. And I will be getting a $2,500 loan from my credit union to fund my investment property. I could pay for the property out of pocket, but I'm purposely getting a loan just to build history with my credit union and to thicken up my credit profile. I also have a paid off car loan $24k - 2 years no missed payments, it was stolen last month and they never recovered my truck therefore, the insurance company paid it off. And I haven't gotten a new car yet. But I'm in the market. 

here's my problem: I want a $100k car loan, but the dealer is asking for a lot of money down and telling me that going from a $24k loan and jumping into a $100k loan is not possible without a large down payment. And don't get me wrong, I have about $20k to put down on a car, but I don't want to! I want to be able to go into the dealer and sign the line, and it's mine.. I've seen people do this when I was an assistant at a BMW dealership. I seen a girl in her 20's come into the dealer and get a BMW X6, with just $1,500 at signing and drove off the lot within an hour. I don't know her background but she did have an AUDI prior to this BMW cause I heard her tell the salesman. However, I want to be able to do this. I have a growing business... I have a solid saving and my debt to income ration is low. I don't have any real debt. All my credit lines are toys. 

Here's my plan... Tell me if this sound like a good plan:


I'm thinking of getting a new car loan for $49k loan for a Chevy Blazer... Not my dream car, but a really nice truck that I like... until I can get my dream car. I will put about $5,000 down. And I will double my car payments each month... to try to eat away at the negative equity before it even get started. Therefore, my credit will say that I had a $24k car loan and then I graduated to a $49k loan, and let's say next year I want a $100k loan. Will that be possible with atleast a small down payment??? Point me in the right direction???


Also what is the best way to increase credit line limits on my credit cards?




Message 1 of 7
Valued Contributor

Re: Will this build my "borrowing" power?

Regarding your credit limits, it would be helpful to know what cards you have and when you opened them (not including AU). I'm just now reaching 3 years of credit age and I have very decent limits ($10k - $15k). I was able to get a $5k DCU credit card early on and got two cards after the year mark with $8k SL. Of course, this was about two years ago and the lending atmosphere was very different than it is now. I think I was able to achieve what I have by spreading out my applications, gardening, and applying for SP CLI whenever I could. 

As for the auto loan, there is truth to not being able to jump from a $24k auto loan to $100k. With only 2 years of history, you need to prove yourself and show that you can handle larger loans. My car was $24k, and I put $5k down, so my first auto loan was $19k. I ended up refinancing a year later with DCU, and now I have a preapproval for up to $50k. I'm sure if I used it, I would qualify for an even higher amount down the road (with good payment history). Whether it would take 1 year or longer, it's hard to say. My guess is longer. 

Message 2 of 7
Credit Mentor

Re: Will this build my "borrowing" power?

@LadyBug002  I've moved your thread to auto loans since majoritylove you questions revolves around that. 

If you wish to discuss credit cards in greater detail, feel free to start a thread in credit card forum 

Message 3 of 7
Senior Contributor

Re: Will this build my "borrowing" power?

Just my opinion but it sounds like a horrible idea to me.

Losing $20k in depresation to help build credit is the wrong way.

Save the $5k and the $20k and the $24k in blazer payments and you are half way to $100k.

IF you really want $100k car, look at lease options with $10k-$20k down. 

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2022.


Message 4 of 7
Established Contributor

Re: Will this build my "borrowing" power?

I'll skip over the mandatory questions about why do you need $100K car....


I'll stick to the facts in my case.

CH 7 discharged 1/6/2016

I have had 7 or so car loans since.

No negatives since discharge.

My highest car loan since discharge is $42,500 and I have another one for daughters car with a $10,000 balance.


In December I wanted a new car and my local credit union pulled my EX Mortgage score which was very low at the time around 660.   Most other scores are above 700.   They approved me for $0 down up to $100,000 for 5.25% for 7 years.


Dealers and their captive financing might have different rules but you might gain approval at a credit union.


I do like going to the dealer with pre-approved financing.


In this case I decided to lease for the very first time becasue of COVID I drive less than 10K miles a year and leased a 62K car sign and drive with nothing at all down.


My advice if you must buy the $100K car is to know all of your scores and find out who uses that score and app with them.


However since my credit union pulls the mortgage score it doesn't count as 1 inquiry with the dealers auto inquiries.

Message 5 of 7
Regular Contributor

Re: Will this build my "borrowing" power?

@Shooting-For-800 wrote:

Just my opinion but it sounds like a horrible idea to me.

Losing $20k in depresation to help build credit is the wrong way.

Save the $5k and the $20k and the $24k in blazer payments and you are half way to $100k.

IF you really want $100k car, look at lease options with $10k-$20k down. 

I think that is a good point.  The two year depreciation on a $100k car will be very high.  If you have the cash it would probably be a better idea and cheaper in the long run to just put that $20k into a down payment and not chase negative equity on such an expensive vehicle.  

Message 6 of 7
Valued Contributor

Re: Will this build my "borrowing" power?

Getting the Blazer is much better step towards your goal.

Paying it off quicker is a very good way to avoid interest and negative equity common with a new car purchase.


Jumping into a $100K car is not ideal for your credit profile.


I remember when I first got into a BMW using BMWFS - they told me at my young age, income, credit, etc that they would feel comfortable to allow $400 monthly payments to start.  So I started with a 3 series sedan.

After 20 years, with 6 BMWs (leased & financed), BMWFS said I could qualify for more up to $1000/month.

I have owned a 5 series and X5 so I am quite happy with BMWFS growing with me!


I still won't finance a $100K car due to the huge depreciation the first 5 years.


I may consider a CPO where you would at least not pay the huge depreciation.


Message 7 of 7
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