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Applying for a credit card after auto loan

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Anonymous
Not applicable

Re: Applying for a credit card after auto loan

Congratulations on your QS1 approval. What is your SL?

 

I think having a 7yr old acct at 90% util will hurt you more than it will help. Having a young profile will affect your scores, but they will bounce back with age and responsible use of your acct(s). Someone please correct me if I’m wrong.  

Message 11 of 16
Anonymous
Not applicable

Re: Applying for a credit card after auto loan

$2,000 credit limit, which is around where I wanted to be. Sounds like the consensus is I'm better off getting rid of the high usage account so I'll do that once the auto loan hits in the next few days. Thanks everybody for the input!

Message 12 of 16
Remedios
Credit Mentor

Re: Applying for a credit card after auto loan


@Anonymous wrote:

$2,000 credit limit, which is around where I wanted to be. Sounds like the consensus is I'm better off getting rid of the high usage account so I'll do that once the auto loan hits in the next few days. Thanks everybody for the input!


 

 

It will be good for you

 

Enjoy your new car and your new card. Make sure to come back when it's time for the next card lol 

Message 13 of 16
Gollum
Established Contributor

Re: Applying for a credit card after auto loan


@Anonymous wrote:

I acquired financing last week from a dealer to purchase a car and would like to get a credit card to continue to build my credit. I currently have a 698 FICO score with pretty limited history - I only have one open account which is a card I am an Authorized User on that I no longer use or pay for. It has a $9,000/10,000 balance that has been paid on time every month since 2012. I made the vehicle purchase last Wednesday and since they are waiting for a couple documents for my trade in, the loan has not shown up on my report and my score has not been affected yet.

 

Can I apply for a credit card (Discover Cash Back) now? Do I need to wait to make a few payments on my car loan before applying? I'd rather do it sooner than later, but if it'll be a significant difference I can push it back a little while.

 

Thanks


I don't think you should be in a hurry to apply for credit cards. If you keep making your car loan payments on time, your car loan will improve your credit. There are several different ways that car dealers can make a profit from the sale of a car (the car dealer's goal is to make a profit each of those ways). It is common to be "upside down" (upside down means owing more than the car is worth) after buying a car via a car loan, but being upside down is not necessarily a cause for alarm. So my suggestion is to concentrate on making your car payments on time, every single time. If you make your car payments on time, your creditworthiness will improve.

Credit Scores: (FICO 8) 846 Experian March 2024, 844 TransUnion March 2024 | (FICO 9) 850 Equifax March 2024
Credit Cards (newest to oldest): NFCU VISA Platinum $25,000 | BECU Cash Back VISA $10,000 | American Express BCE $9000 | Simmons Bank VISA $7500 | Capital One Quicksilver VISA Platinum (PC/upgrade from No Hassle Miles Rewards VISA Platinum) $500
Message 14 of 16
kiea
Frequent Contributor

Re: Applying for a credit card after auto loan

Yes, the previous post are right regarding the AU account. Think about it this way once your new card starts reporting you will have a $12,000 limit reporting but you will owe $9,000 which is already over 50% ulitization so you score might go down before it goes up.

Also, the Discover secure is a good option. They will unsecure it after 7 months and raise your limit if you make on time payments.
Start of rebuild July 2021

January 2022
Message 15 of 16
AverageJoesCredit
Legendary Contributor

Re: Applying for a credit card after auto loan

2k is pretty generous of C1 on your first card. I think you should get the Disco secured as well as it can graduate in 7 months and by 5hen youll have 7 months more history. Having more thsn 1 cc and a loan can only help you. Good luckSmiley Happy
Message 16 of 16
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