cancel
Showing results for 
Search instead for 
Did you mean: 

I got approved! Will it affect my chances?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
New Contributor

I got approved! Will it affect my chances?

Hey everyone. Today was a very exciting day. I just got home from the honda dealer ship and ended up driving home a brand new Honda! I'm so excited! I was with my parents in the freeway and we drove by the dealership and decided to go just to look around and see what they had. I was already planning to get a car but not this soon, I'm glad we went tho. The sales person came up to us, showed us the car and he asked if i wanted to test drive so I said sure. After the test drive me and my parents talked for a bit and I decided to give it a shot and I ended up getting approved with my dad as a cosigner. I was approved for a lease at 1.9% for 36 months and $0 down through Honda Financial Services. I'm so excited I just wanted to share with you guys. BTW I'm only 19 so it was very surprising to me how low of an APR I got. EDIT: I'm planning to apply for the BofA Cash Rewards card in January do you guys think it will affect me on the chances of approval?


Starting Score: EQ:623, TU:604, EX:641 7/23/16
Current Score: EQ:705, TU:694, EX:694 09/23/16
Goal Score: 700 on all 3


Take the myFICO Fitness Challenge



31 REPLIES 31
Super Contributor

Re: I got approved! Will it affect my chances?


@RoyalFlush123 wrote:

Hey everyone. Today was a very exciting day. I just got home from the honda dealer ship and ended up driving home a brand new Honda! I'm so excited! I was with my parents in the freeway and we drove by the dealership and decided to go just to look around and see what they had. I was already planning to get a car but not this soon, I'm glad we went tho. The sales person came up to us, showed us the car and he asked if i wanted to test drive so I said sure. After the test drive me and my parents talked for a bit and I decided to give it a shot and I ended up getting approved with my dad as a cosigner. I was approved for a lease at 1.9% for 36 months and $0 down through Honda Financial Services. I'm so excited I just wanted to share with you guys. BTW I'm only 19 so it was very surprising to me how low of an APR I got. EDIT: I'm planning to apply for the BofA Cash Rewards card in January do you guys think it will affect me on the chances of approval?


Congratulations!  Very happy for you, buddy.

 

Regarding your question, we can't answer that because we don't know what your credit reports look like.  Do you have any other credit cards?  Do you have any installment accounts?  (Personal loans, student loans, etc.)  The honda lease will eventually appear as an installment account.

 

Your signature says that your scores were  EQ:705, TU:694, EX:694  as of 09/23/16

 

What did you use to pull those scores?

Message 2 of 32
New Contributor

Re: I got approved! Will it affect my chances?


@CreditGuyInDixie wrote:

@RoyalFlush123 wrote:

Hey everyone. Today was a very exciting day. I just got home from the honda dealer ship and ended up driving home a brand new Honda! I'm so excited! I was with my parents in the freeway and we drove by the dealership and decided to go just to look around and see what they had. I was already planning to get a car but not this soon, I'm glad we went tho. The sales person came up to us, showed us the car and he asked if i wanted to test drive so I said sure. After the test drive me and my parents talked for a bit and I decided to give it a shot and I ended up getting approved with my dad as a cosigner. I was approved for a lease at 1.9% for 36 months and $0 down through Honda Financial Services. I'm so excited I just wanted to share with you guys. BTW I'm only 19 so it was very surprising to me how low of an APR I got. EDIT: I'm planning to apply for the BofA Cash Rewards card in January do you guys think it will affect me on the chances of approval?


Congratulations!  Very happy for you, buddy.

 

Regarding your question, we can't answer that because we don't know what your credit reports look like.  Do you have any other credit cards?  Do you have any installment accounts?  (Personal loans, student loans, etc.)  The honda lease will eventually appear as an installment account.

 

Your signature says that your scores were  EQ:705, TU:694, EX:694  as of 09/23/16

 

What did you use to pull those scores?


Yes I have 3 cards. I have one store card at $760 limit, Cap1 at $400 limit and Care Credit at $3,500 limit. I also have a personal loan for $1800 with a $1300 balance and another loan on my reports that was paid off last year. Those scores on my signature are FICO scores.


Starting Score: EQ:623, TU:604, EX:641 7/23/16
Current Score: EQ:705, TU:694, EX:694 09/23/16
Goal Score: 700 on all 3


Take the myFICO Fitness Challenge



Message 3 of 32
Super Contributor

Re: I got approved! Will it affect my chances?

Is there a reason why you are waiting until January to apply for the new CC?  If it's something you are going to apply for regardless, I'd recommend applying now.  The reason is that while you have the inquiry from the auto loan on your reports already, the account definitely hasn't reported yet.  Once the account reports, your score will drop a little due to the addition of a "new account" as well as a reduction to AAoA (if you cross a threshold).  You pay have lost a couple of points from the inquiry, but when the account reports you could possibly lose say 10-15 more.  Rest assured that any additional points lost will return in several months (likely 6 or less). 

 

Another thing you didn't mention is where your aggregate utilization sits between those 3 cards that you have now.  If it's relatively high, but could be significantly lower by next month, I'd say that factor is more important than this new loan account and holding off on apping would be better next month.  If you give us a little more feedback about the details of your file we can better guide you.

Message 4 of 32
Super Contributor

Re: I got approved! Will it affect my chances?


@BrutalBodyShots wrote:

Is there a reason why you are waiting until January to apply for the new CC?  If it's something you are going to apply for regardless, I'd recommend applying now.  The reason is that while you have the inquiry from the auto loan on your reports already, the account definitely hasn't reported yet.  Once the account reports, your score will drop a little due to the addition of a "new account" as well as a reduction to AAoA (if you cross a threshold).  You may have lost a couple of points from the inquiry, but when the account reports you could possibly lose say 10-15 more.  Rest assured that any additional points lost will return in several months (likely 6 or less). 

 

Another thing you didn't mention is where your aggregate utilization sits between those 3 cards that you have now.  If it's relatively high, but could be significantly lower by next month, I'd say that factor is more important than this new loan account and holding off on apping would be better next month.  If you give us a little more feedback about the details of your file we can better guide you.


BBS makes some great points as usual.  The only slight caveat I'd give is that the inquiry won't actually begin affecting his credit score for another 29 days.  See this language from FICO:

 

"... FICO Scores ignore mortgage, auto, and student loan inquiries made in the 30 days prior to scoring."

http://www.myfico.com/credit-education/credit-checks/credit-report-inquiries/

 

Other than that tiny tweak, his advice is spot on.

 

As he says, if your CC utilization is very low now (< 8.99%), then it makes sense to apply now, before the new account appears and before the inquiry begins to affect your score.

 

If your CC utilization is NOT ultralow, and you have money to pay your cards down, then it likely makes sense to do that first.

 

The answer for how the new account will affect your score is that it will hurt it for a while.  Beyond just the usual hit to your average age of accounts and so forth, there may be a hit associated with your installment loan balances.  Right now your open installment debt is partly paid off (you owe 72%).  After the new installment account appears, however, almost none of your combined installment debt will be paid off (you'll be well over 91%).  For complicated reasons I am guessing that in your case this hit will be zero, but it conceivably could be more.

 

Bottom line is that the advice from BBS is great.  Circle back with us and tell us what the amount owed is for the three cards as it appears on your credit reports.  The ideal place you want to be is with two of the three cards at $0 and one with a small-ish amount (less than $100 say).

Message 5 of 32
Super Contributor

Re: I got approved! Will it affect my chances?

CGID,

 

Good point regarding the inquiry and 30 days for it to impact score.  I wasn't really even thinking of it in terms of score, but rather simply that it's visible and that the CC company that the OP is considering applying with would be able to see it depending on the bureau pulled compared to the bureau the inquiry hit.  OP, have you looked into which bureau the creditor typically pulls that you're considering apping with?  Which bureau did the auto inquiry hit?  If they are different bureaus, there's a strong chance you could apply for the card you want now and the creditor you're applying with would have absolutely no idea that you just applied (and got) an auto loan is they wouldn't see the inquiry or account.  That would certainly change next month, though.  This is one of those examples were a "spree" (if you want to call it that) would be more beneficial rather that opening up several accounts over a period of several months.

Message 6 of 32
Super Contributor

Re: I got approved! Will it affect my chances?

Nevertheless I am convinced that BBS gave really sound initial advice.  There might be a really good reason to hold off on this CC app for at least a few weeks or possibly a couple months, depending on how our friend's CC balances are currently reporting.  We need to know those first.

Message 7 of 32
New Contributor

Re: I got approved! Will it affect my chances?

My utilization is at 4% and the auto inquiry pulled TU for sure and i think EX too. I got an alert on CK for the TU inquiry but none for EQ. I really dont have a reason for waiting now that you guys say it. Its just that i was in between the CITI costco anywhere card and the BofA cash rewards card. They're both good but im not sure which one i should app for yet.


Starting Score: EQ:623, TU:604, EX:641 7/23/16
Current Score: EQ:705, TU:694, EX:694 09/23/16
Goal Score: 700 on all 3


Take the myFICO Fitness Challenge



Message 8 of 32
New Contributor

Re: I got approved! Will it affect my chances?

I checked the credit pulls database and for Bofa here in California they pull EX about 90% of the time and a few others got EQ and TU pulled. For CITI they pull EX most of the time too there's some that got EQ pulled and very few that got TU pulled.


Starting Score: EQ:623, TU:604, EX:641 7/23/16
Current Score: EQ:705, TU:694, EX:694 09/23/16
Goal Score: 700 on all 3


Take the myFICO Fitness Challenge



Message 9 of 32
Super Contributor

Re: I got approved! Will it affect my chances?

Quick question, RoyalF.  Do you have any derogs?  Upper 600s is a strangely low score for someone with three credit cards at 4% utilization, along with an open installment loan.

 

Just curious.

Message 10 of 32
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.