Best way forward?

[Devon33]

Hello all,

I'm in a situation where I started really paying attention to my credit and started to rebuild it ,thanks to these forums!  Right now my FICO 8 scores range from eq-635,TU-655,EX-660. My 04 scores are 660-698  I just paid down a card where I'm an AU on my wife's card which will drop the utilization for both TU and EX.  That card does not report to EQ and right now so the the score simulator says the only way I can raise my score is to open up new CC's and that actually goes for all 3 reports.

All of my baddies dropped off save for some judgements from my country club and HOA back in 2009/10 which are all paid (separation).  I have a car loan and mortgage but everything else is all AU CC's. Both of these are in good shape and helping my score.

The question is I'm getting ready to by a new car which is in production now and scheduled for delivery first week of January.  My auto scores are higher 660-700 (The 700 is EX) so I'm good with that and plan on using BMWFS for financing.  They use Experian  exclusively but I also need to open a few cards too.

I wanted to get some input on how to execute from an inquiry point of view.  Should I freeze all of my reports besides Experian  since that's what BMWFS uses just to make sure, I don't get any unwanted inquiries on the others?  Should I close the auto loan first then apply for cards on the same day or apply for cards first then close the auto loan?  I'm assuming an inquiry will drop my score's a few points and that's my concern I'm right on the cut line to get the best rates from BMWFS. I have 0 inquiries on all 3 reports right now...

Any input would be great! Sorry for the novel!

[Anonymous]

How do you have a car in production for you but without you having figured out how to pay for it? I suggest you goto a bank or the dealer and figure out how you're going to finance the car and what would be the interest rate and loan term. Or pay for the car in cash if you don't get a good interest rate. After the car is settled, then you can apply for credit cards. I'd say get just 1 card for now. When you score is over 750, then you can think about adding another card or two and getting a better starting credit line. Don't apply for cards before the loan, because the inquiries will lower your score and could give you a higher interest rate.

[takeshi74]

I'd suggest getting your financing sorted out on your own and ahead of time if you're worried over hard pulls.  Apply for cards once your auto financing is finalized so that the card apps don't affect your auto loan terms.

[Devon33]

Thanks for the input, that's what I was figuring but just wanted some confirmation from the credit experts on this board!

I've dealt with theses guys for years this is my 4th car from them. Financed my last one through them but put down 50% and got a 9% rate (used CPO).  Bought my wife's outright last year (new), just depends on the year we had investments wise etc.  They know I'll close the car either way and they can get me financed even if my scores were rock bottom.  The difference is this time I want to rebuild my credit and get it up in the 700's to round everything out from a financial portfolio perspective not just get a car and be done because I can.  I need to be smarter with my credit now...meaning yes get a car but I need to get revolving credit also just didn't know what to do first since my scores are boarder line right now...

Down the road I'm looking to add a lake house maybe lease a nicer car things like that and you need a complete portfolio, (net worth, income and good credit).  Paying cash just dosen't make sense anymore especially since investment returns are pretty good YOY.  Plus I don't have that kind of cash to plop down on a 500k lake house lol! But I can support another mortgage payment income wise but not credit wise.

Time for me to grow up credit wise!  I'm just trying to figure how to make the most out these borderline scores now so in 2 years I can make some changes if the wife and I want to.