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Question on available credit.

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Anonymous
Not applicable

Question on available credit.

So I recently got approved for the Chase Sapphire preferred card with a $10,000 limit. I also have an American Express Blue Cash and they just upped my limit to $6,000 right after I got the Chase (automatic increase). I decided to close out both my capital one accounts after I got the Chase so I don't have too many cards. I don't carry a balance month to month and pay them down before due. Here is my question, my car is coming up on needing an engine (lifters starting to fail) and I was talking to a salesman (family friend) I know and he said I should not bother applying for an auto loan for a new vehicle because I have too much credit availability between Chase and Amex and said I'd have to close my new Chase account which I'm not willing to do. So even just having that credit available to you will bar you from loans? I'm not experienced with loans, I just earned my bachelors degree and it was paid for so I don't have education debt and I've always bought cash vehicles. I've had credit cards for about 4 years I believe (always have used them heavily but paid down) and my score hovers around 750 with $16,000 available currently. I was told I'm probably going to need a co-signer or to put an engine in my 15 year old truck for cash and those are really my only options. Does this seem right? I had no idea auto loans were so tough. I'm kind of stuck on what to do. My car has 215,000 miles and I'd hate to sink 6 grand into it but if I can't get a loan it may be my only option. So to clarify available credit seems to count against you for further borrowing even if not utilized?

Message 1 of 17
16 REPLIES 16
SlideOrInsert
Regular Contributor

Re: Question on available credit.

I was 19/in school/working pt with no credit cards (maybe unknowingly authorized user on a couple) and knowing almost nothing about credit scores. I dealer qualified/no co-signer for a $22K auto loan (albeit 11% apr) for a brand new Silverado (it has been a while since Silverados were $22K). at the time there was no auto loans forum to learn from (there was barely any online forums at all).

 

I read somewhere in the understanding fico scoring faqs that at least 3 credit cards is favorable for credit mix. high available credit does not disqualify from additional credit. there are folks around these forums with half-a-milli in available credit.

 

maybe you are on the younger side and with a thin file, but sounds like you are off to a smarter start with amassing credit whilst staying out of debt. before accepting any friendly or salesman financing, it is always best to check with the bank you currently have a relationship with or a local credit union is often better.

 

I don't know how much of a "friend" I would consider that person giving that kind of advice. sounds more like salesman advice than friendly advice.

 

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Message 2 of 17
NYC_Fella
Frequent Contributor

Re: Question on available credit.

Get a new family friend. The guy doesn't have a clue. Why are you taking advice from a car salesman instead of inquiring at a bank or a credit union? Radical idea, I know. Smiley Wink


Message 3 of 17
CYBERSAM
Senior Contributor

Re: Question on available credit.

🤦‍♂️ Either your "family friend" has no clue what his taking about or his trying to get you a overpriced truck through him with very high interest financing!

With your credit score and credit profile, you should be able to finance a newer truck with very low interest rate. Try a credit union for auto loans with little down payment. Also negotiate the price down.







                
Message 4 of 17
Remedios
Credit Mentor

Re: Question on available credit.


@Anonymous wrote:

So I recently got approved for the Chase Sapphire preferred card with a $10,000 limit. I also have an American Express Blue Cash and they just upped my limit to $6,000 right after I got the Chase (automatic increase). I decided to close out both my capital one accounts after I got the Chase so I don't have too many cards. I don't carry a balance month to month and pay them down before due. Here is my question, my car is coming up on needing an engine (lifters starting to fail) and I was talking to a salesman (family friend) I know and he said I should not bother applying for an auto loan for a new vehicle because I have too much credit availability between Chase and Amex and said I'd have to close my new Chase account which I'm not willing to do. So even just having that credit available to you will bar you from loans? I'm not experienced with loans, I just earned my bachelors degree and it was paid for so I don't have education debt and I've always bought cash vehicles. I've had credit cards for about 4 years I believe (always have used them heavily but paid down) and my score hovers around 750 with $16,000 available currently. I was told I'm probably going to need a co-signer or to put an engine in my 15 year old truck for cash and those are really my only options. Does this seem right? I had no idea auto loans were so tough. I'm kind of stuck on what to do. My car has 215,000 miles and I'd hate to sink 6 grand into it but if I can't get a loan it may be my only option. So to clarify available credit seems to count against you for further borrowing even if not utilized?


Talk to someone else. That salesman is living in alternate reality and/or has ulterior motive. 

Available credit doesn't count against anything, especially car loans.  In fact, the opposite is true, if you can manage cars, you can manage loans. 

Seriously, I wouldn't talk finances with that person, they are either clueless as will lead you to do something crazy like close accounts or they have "better solution" for problem you don't have. 

 

Message 5 of 17
mgood
Valued Contributor

Re: Question on available credit.

Car salesmen are not necessarily experts in auto finance. (Some probably are. Most probably are not.) I think the guy is mistaken.



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AZE12 - 5% Utl - New Cards: 1/6, 3/12, 6/24
Message 6 of 17
SouthJamaica
Mega Contributor

Re: Question on available credit.


@Anonymous wrote:

So I recently got approved for the Chase Sapphire preferred card with a $10,000 limit. I also have an American Express Blue Cash and they just upped my limit to $6,000 right after I got the Chase (automatic increase). I decided to close out both my capital one accounts after I got the Chase so I don't have too many cards. I don't carry a balance month to month and pay them down before due. Here is my question, my car is coming up on needing an engine (lifters starting to fail) and I was talking to a salesman (family friend) I know and he said I should not bother applying for an auto loan for a new vehicle because I have too much credit availability between Chase and Amex and said I'd have to close my new Chase account which I'm not willing to do. So even just having that credit available to you will bar you from loans? I'm not experienced with loans, I just earned my bachelors degree and it was paid for so I don't have education debt and I've always bought cash vehicles. I've had credit cards for about 4 years I believe (always have used them heavily but paid down) and my score hovers around 750 with $16,000 available currently. I was told I'm probably going to need a co-signer or to put an engine in my 15 year old truck for cash and those are really my only options. Does this seem right? I had no idea auto loans were so tough. I'm kind of stuck on what to do. My car has 215,000 miles and I'd hate to sink 6 grand into it but if I can't get a loan it may be my only option. So to clarify available credit seems to count against you for further borrowing even if not utilized?


1.  Your family friend doesn't know what he's talking about.  Stay away from him.

 

2.  Car loans are not tough at all, they are easy. If you join a credit union, they'll be pushing low interest car loans on you before you turn your head around.

 

 


Total revolving limits 569520 (505320 reporting) FICO 8: EQ 689 TU 684 EX 682




Message 7 of 17
Anonymous
Not applicable

Re: Question on available credit.

Not super tight with the guy just figured I'd ask what the deal is with autos. Didn't go too in depth just mentioned my available credit because of the new account and didn't want to go doing a hard pull if I was sure fire going to be denied a loan. He said no way his dealer would be able to approve me for a sale at my age with that credit and that was the end of it. I could buy a crate engine from GM and have it installed, but it just seems like burning money on a 15 year old truck so I'd rather get something newer. Thanks for the insight on this thought, sounds like he had no idea what he was talking about. Probably just doesn't want to sell to someone young who could end up a waste of time with no approvals when he could be servicing other customers. 

Message 8 of 17
FireMedic1
Community Leader
Mega Contributor

Re: Question on available credit.


@Anonymous wrote:

So I recently got approved for the Chase Sapphire preferred card with a $10,000 limit. I also have an American Express Blue Cash and they just upped my limit to $6,000 right after I got the Chase (automatic increase). I decided to close out both my capital one accounts after I got the Chase so I don't have too many cards. I don't carry a balance month to month and pay them down before due. Here is my question, my car is coming up on needing an engine (lifters starting to fail) and I was talking to a salesman (family friend) I know and he said I should not bother applying for an auto loan for a new vehicle because I have too much credit availability between Chase and Amex and said I'd have to close my new Chase account which I'm not willing to do. So even just having that credit available to you will bar you from loans? I'm not experienced with loans, I just earned my bachelors degree and it was paid for so I don't have education debt and I've always bought cash vehicles. I've had credit cards for about 4 years I believe (always have used them heavily but paid down) and my score hovers around 750 with $16,000 available currently. I was told I'm probably going to need a co-signer or to put an engine in my 15 year old truck for cash and those are really my only options. Does this seem right? I had no idea auto loans were so tough. I'm kind of stuck on what to do. My car has 215,000 miles and I'd hate to sink 6 grand into it but if I can't get a loan it may be my only option. So to clarify available credit seems to count against you for further borrowing even if not utilized?


Nice approvals. So how many cards do you have now? Never let all accounts report a $0 balance. Theres some points lost due to none reporting. Have 1 account post $20. Then pay after statement date and before due date. Higher scores lower interest. With those scores you'll be fine. Tell that guy to read here if he wants to learn how credit works. Because he's way off. Glad he isnt a credit conselor. Smiley Happy


Message 9 of 17
moto4man
Regular Contributor

Re: Question on available credit.


@Anonymous wrote:

So I recently got approved for the Chase Sapphire preferred card with a $10,000 limit. I also have an American Express Blue Cash and they just upped my limit to $6,000 right after I got the Chase (automatic increase). I decided to close out both my capital one accounts after I got the Chase so I don't have too many cards. I don't carry a balance month to month and pay them down before due. Here is my question, my car is coming up on needing an engine (lifters starting to fail) and I was talking to a salesman (family friend) I know and he said I should not bother applying for an auto loan for a new vehicle because I have too much credit availability between Chase and Amex and said I'd have to close my new Chase account which I'm not willing to do. So even just having that credit available to you will bar you from loans? I'm not experienced with loans, I just earned my bachelors degree and it was paid for so I don't have education debt and I've always bought cash vehicles. I've had credit cards for about 4 years I believe (always have used them heavily but paid down) and my score hovers around 750 with $16,000 available currently. I was told I'm probably going to need a co-signer or to put an engine in my 15 year old truck for cash and those are really my only options. Does this seem right? I had no idea auto loans were so tough. I'm kind of stuck on what to do. My car has 215,000 miles and I'd hate to sink 6 grand into it but if I can't get a loan it may be my only option. So to clarify available credit seems to count against you for further borrowing even if not utilized?


After that.... I'm tempted to tell you to find another mechanic!  I'll definitely suggest that you tell him to stick to wrenching.  I don't see you having any problem what so ever getting approved for an auto loan depending on your income.

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