Overstock shopping cart before Auto refinance?

[rydog]

Hey guys, I plan on refinancing my auto loan in mid November but I am quite intrigued in the shopping cart trick for the overstock card. Many people are reporting pretty good credit limits and that it is not a hard pull. I really have no use for this card but it could help with utilization.

If i t was a hard pull I would not be considering it. I currently have 5 hard pulls. 4 of which are well over a year old and 1 that is 11 months old.

Obviously when i refinance i want the best possible rate i can get and im not sure if getting this card will affect that. The only downside i can see is that it will decrease my average age. 

Any help would be greaty appreciated

[coldnmn]

You should definitely wait until after car financing.  The new TL will more then likely lower your credit score. In my opinion applying for a card you wont use could hurt your chances for cards you may need in the future.

[taxi818]

Even that being true. i woud apply for what i wanted. it will lower score but what. 3-5 points. nothing to worry about. people over emphasize things. its just a car loan. yes you want the best rate.

but im pretty sure 1 credit card app with not change your score that much. at all. unless your scores are so low.

especially now people getting car loans in the 500s with good rates.

AS other thread stated most car loans are with scores in the lower 600s. and with great aprs too. so don't sweat it.

Don't take my word for it. look it up in the auto loan section of my fico.

[FinStar]

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@coldnmn wrote:

You should definitely wait until after car financing.  The new TL will more then likely lower your credit score. In my opinion applying for a card you wont use could hurt your chances for cards you may need in the future.

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Sorry taxi1818, but I agree with coldnmn on this one.  OP - depending on who you'll go through or auto-financing, and since you want the best possible rate, this may have some impact.  But, as with anything YEMV.  Out of curiosity OP, why would you apply for something you don't need or will never use?  Managing utilization rests with lowering your debt/balances.  I can see if you were appying for something with a decent sign-up bonus but still.

[takeshi74]

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@rydog wrote:

Obviously when i refinance i want the best possible rate i can get and im not sure if getting this card will affect that. The only downside i can see is that it will decrease my average age.

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AAoA is a factor in assessing your credit (Length of Credit History below):

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

We can't say for certain exactly how much impact it would have but if you want the best possible rates then don't drop your AAoA (or adversely impact any of the other factors) before the refinance.  Even if you don't know the impact, determine which of the two is a bigger priority for you and act accordingly.  Does getting the card that you have no use for take precedence over your auto refinance?  The refinance is probably more of a fixed point in time (based on your statement that you plan to do so in November) whereas you can do the shopping cart trick at any point in time.

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@taxi818 wrote:

Even that being true. i woud apply for what i wanted. it will lower score but what. 3-5 points.

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You have no idea what impact the new account would have on the OP's AAoA.  There's no way to even begin to determine that without knowing the OP's current AAoA.

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@taxi818 wrote:

people over emphasize things.

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People also oversimplify and rely on broad, sweeping generalization that may not apply in all cases.  The effect of a change isn't necessarily the same for everyone.  There are changes that will impact thinner profiles more than thicker profiles.  Again, you'd need to know the details regarding the OP's credit to make such assessments.  You can't just assume that the OP's credit is identical to your own and that the impact of adding a new account would be the same for the OP as it was for you.