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Does opening a new card hurt chances at auto loan approval?

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Reviewers
Established Contributor

Does opening a new card hurt chances at auto loan approval?

I have recently gotten approved for a Chase Sapphire Reserve. As I bank with chase and have wanted this card, I would love to accept the offer. Especially since it has a minimum limit of $10k on the card which would help my total card utilization and be helpful in the future. I'm looking at financing a $40k-50k car with possibly putting a $10k-15k down payment. I have prior financing history with cars such as Nissan GT-R, Mercedes C63 and other cars which I have paid the loans in full with 0 late payments. Would I hurt my chances of getting a auto loan if I accepted this credit card offer? Which choice is smarter, 1 or 2? Thank you.


1. Accept CSR --> Get auto loan
2. Get auto loan --> Accept CSR

Message 1 of 13
12 REPLIES 12
cashorcharge
Community Leader
Senior Contributor

Re: Does opening a new card hurt chances at auto loan approval?

Not sure if the scores in your signature are current but if you're stating you've previous had auto loan/lease accounts for cars in excess of $80k and now you're looking at a $50k auto loan with 20% down....I don't think getting the CSR today then the auto loan would be bad decision. Unless I'm missing something or you've omitted other factors leading to your scores such as other dings, I don't see a concern. 

Message 2 of 13
Reviewers
Established Contributor

Re: Does opening a new card hurt chances at auto loan approval?

@cashorcharge The scores in my signature are current, I had actually updated my sig earlier. Yes, that's exactly what I'm saying. I just didn't want to accept the offer and worry about getting denied for the auto-loan as I'm looking to get a new vehicle soon. Between both of my prior vehicle finances it was $120,000 between both of them.

Message 3 of 13
cashorcharge
Community Leader
Senior Contributor

Re: Does opening a new card hurt chances at auto loan approval?


@Reviewers wrote:

@cashorcharge The scores in my signature are current, I had actually updated my sig earlier. Yes, that's exactly what I'm saying. I just didn't want to accept the offer and worry about getting denied for the auto-loan as I'm looking to get a new vehicle soon. Between both of my prior vehicle finances it was $120,000 between both of them.


Got it. Typically, auto loans are not as restrictive when it comes to recently getting a credit card or have as many rules though your EX and EQ scores are under 700, that doesn't preclude you from getting an auto loan, you may just pay more in interest or money factor on the lease. Depending on the FI you get the auto loan from....a captive bank from a manufacturer...some do pull TU but perhaps not exclusively. I guess it boils down to your timing of "real soon" like this weekend or within 60 days. 


Message 4 of 13
Reviewers
Established Contributor

Re: Does opening a new card hurt chances at auto loan approval?

If I was to accept the card offer today for example, I would be trying to get into the vehicle within the next 60-90 days. What do you think is my best choice? Appreciate the quick responses btw @cashorcharge 

Message 5 of 13
cashorcharge
Community Leader
Senior Contributor

Re: Does opening a new card hurt chances at auto loan approval?

I would get the card now if it were me. The small auto loan and large down payment is helpful. If qualifying for the car you have heart set on today is within reach, the approval with a sizeable down payment would not typically get declined from a new Chase CC

Message 6 of 13
SouthJamaica
Mega Contributor

Re: Does opening a new card hurt chances at auto loan approval?


@Reviewers wrote:

I have recently gotten approved for a Chase Sapphire Reserve. As I bank with chase and have wanted this card, I would love to accept the offer. Especially since it has a minimum limit of $10k on the card which would help my total card utilization and be helpful in the future. I'm looking at financing a $40k-50k car with possibly putting a $10k-15k down payment. I have prior financing history with cars such as Nissan GT-R, Mercedes C63 and other cars which I have paid the loans in full with 0 late payments. Would I hurt my chances of getting a auto loan if I accepted this credit card offer? Which choice is smarter, 1 or 2? Thank you.


1. Accept CSR --> Get auto loan
2. Get auto loan --> Accept CSR


Yes you would hurt your chances, and probably your interest rate as well.  There isn't the slightest doubt that your better option is to get the auto loan first.

 

However, it's very possible that getting the auto loan would lower your scores and thus hurt your chances for an approval on the CSR. So once you get the auto loan you might want to wait awhile on the CSR and see if the prequalification comes back.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 13
Yasselife
Valued Contributor

Re: Does opening a new card hurt chances at auto loan approval?

@SouthJamaica  

How long do you recommend to stay in the garden before an auto loan, 6-12mo ok?

 






Message 8 of 13
SouthJamaica
Mega Contributor

Re: Does opening a new card hurt chances at auto loan approval?


@Yasselife wrote:

@SouthJamaica  

How long do you recommend to stay in the garden before an auto loan, 6-12mo ok?

 


I don't have a recommendation. I just know that some FICO scores get a nice boost when your age of youngest account hits 12 months.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 9 of 13
disdreamin
Valued Contributor

Re: Does opening a new card hurt chances at auto loan approval?

I opened a new CSP account with Chase and purchased a new vehicle financed through Chase shortly after without issue. However, my FICO 8 scores were all 800+ at the time, so a hit of a dozen points would not impact my financing tier. Had my scores been lower, I'd have taken the approach others are suggesting and secured the auto financing first and then opened the card immediately upon approval for the auto financing, as long as I was willing to take the hits for the pulls and new accounts.

Message 10 of 13
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