The reason I ask is that DW's car was totaled 3 weeks ago and Geico paid off the loan. We bought a new car last week through NFCU. My first payment through NFCU is 8/3, so I assume it won't report until then (but maybe not?).
The loan on the old car should show as being paid off on the 31st, assuming my CU reports the same they have.
My question is if the new car loan would adversely affect getting a CC? I'm wanting to apply for the Citi Custom Cash card, but I planned to wait a few months. That said, if the new car loan is going to ding me, I may do it sooner. If my CU reports on the 31st, I'll have an additional $23,XXX in debt gone from my overall debt, so my DTI will look nice, because that was by far my largest account balance.
I <think> I would get the card either way, but if applying during that false DTI dip helps me possibly get a higher SL or lower APR, I'll do it sooner.
@JNA1 wrote:The reason I ask is that DW's car was totaled 3 weeks ago and Geico paid off the loan. We bought a new car last week through NFCU. My first payment through NFCU is 8/3, so I assume it won't report until then (but maybe not?).
The loan on the old car should show as being paid off on the 31st, assuming my CU reports the same they have.My question is if the new car loan would adversely affect getting a CC? I'm wanting to apply for the Citi Custom Cash card, but I planned to wait a few months. That said, if the new car loan is going to ding me, I may do it sooner. If my CU reports on the 31st, I'll have an additional $23,XXX in debt gone from my overall debt, so my DTI will look nice, because that was by far my largest account balance.
I <think> I would get the card either way, but if applying during that false DTI dip helps me possibly get a higher SL or lower APR, I'll do it sooner.
You haven't given us enough information to determine, but if
(a) the car loan is your only loan, and
(b) the old loan is mostly paid off
then
once the old loan is gone and the new one has taken its place, you would get a dip in your FICO 8 and 9 scores.
@SouthJamaica wrote:
@JNA1 wrote:The reason I ask is that DW's car was totaled 3 weeks ago and Geico paid off the loan. We bought a new car last week through NFCU. My first payment through NFCU is 8/3, so I assume it won't report until then (but maybe not?).
The loan on the old car should show as being paid off on the 31st, assuming my CU reports the same they have.My question is if the new car loan would adversely affect getting a CC? I'm wanting to apply for the Citi Custom Cash card, but I planned to wait a few months. That said, if the new car loan is going to ding me, I may do it sooner. If my CU reports on the 31st, I'll have an additional $23,XXX in debt gone from my overall debt, so my DTI will look nice, because that was by far my largest account balance.
I <think> I would get the card either way, but if applying during that false DTI dip helps me possibly get a higher SL or lower APR, I'll do it sooner.
You haven't given us enough information to determine, but if
(a) the car loan is your only loan, and
(b) the old loan is mostly paid off
then
once the old loan is gone and the new one has taken its place, you would get a dip in your FICO 8 and 9 scores.
I have a mortgage with $15K left, auto loan for my truck with $11K left, and the auto loan that will fall off later this month was $23K. The new loan will be $35K.
No other loans, 2% utilization on my cards, scores in the 770's - 780's F8, 780's - 800 F9.
@JNA1 wrote:
@SouthJamaica wrote:
@JNA1 wrote:The reason I ask is that DW's car was totaled 3 weeks ago and Geico paid off the loan. We bought a new car last week through NFCU. My first payment through NFCU is 8/3, so I assume it won't report until then (but maybe not?).
The loan on the old car should show as being paid off on the 31st, assuming my CU reports the same they have.My question is if the new car loan would adversely affect getting a CC? I'm wanting to apply for the Citi Custom Cash card, but I planned to wait a few months. That said, if the new car loan is going to ding me, I may do it sooner. If my CU reports on the 31st, I'll have an additional $23,XXX in debt gone from my overall debt, so my DTI will look nice, because that was by far my largest account balance.
I <think> I would get the card either way, but if applying during that false DTI dip helps me possibly get a higher SL or lower APR, I'll do it sooner.
You haven't given us enough information to determine, but if
(a) the car loan is your only loan, and
(b) the old loan is mostly paid off
then
once the old loan is gone and the new one has taken its place, you would get a dip in your FICO 8 and 9 scores.
I have a mortgage with $15K left, auto loan for my truck with $11K left, and the auto loan that will fall off later this month was $23K. The new loan will be $35K.
No other loans, 2% utilization on my cards, scores in the 770's - 780's F8, 780's - 800 F9.
You still don't provide enough information. Need to know: original amount of the mortgage, and the original amount of both older loans.
In my case, I traded in a car that was financed through Navy earlier this year. The payment was pretty much the same.
There was a period of time between when the old loan and the new loan reported of about a month to 6 weeks.
During that time my credit scores went up because
- less overall debt
- loan limits relative to amount owed was very low (still had a car loan which is 90 percent paid off)
When the new loan reported, scores dropped to their previous levels.
THAT BEING SAID, I don't know that you should take advantage of that artificial bump with a creditor like Citi or Chase because will continue to SP you after you got a new card and people on the boards have reported AA due to new activity. If the new car loan Bumps your DTI to much, I could see a prime lender (or synchrony) not wanting to take the chance.
Good luck! I'm glad your wife is ok after the accident!
@SouthJamaica wrote:
@JNA1 wrote:
@SouthJamaica wrote:
@JNA1 wrote:The reason I ask is that DW's car was totaled 3 weeks ago and Geico paid off the loan. We bought a new car last week through NFCU. My first payment through NFCU is 8/3, so I assume it won't report until then (but maybe not?).
The loan on the old car should show as being paid off on the 31st, assuming my CU reports the same they have.My question is if the new car loan would adversely affect getting a CC? I'm wanting to apply for the Citi Custom Cash card, but I planned to wait a few months. That said, if the new car loan is going to ding me, I may do it sooner. If my CU reports on the 31st, I'll have an additional $23,XXX in debt gone from my overall debt, so my DTI will look nice, because that was by far my largest account balance.
I <think> I would get the card either way, but if applying during that false DTI dip helps me possibly get a higher SL or lower APR, I'll do it sooner.
You haven't given us enough information to determine, but if
(a) the car loan is your only loan, and
(b) the old loan is mostly paid off
then
once the old loan is gone and the new one has taken its place, you would get a dip in your FICO 8 and 9 scores.
I have a mortgage with $15K left, auto loan for my truck with $11K left, and the auto loan that will fall off later this month was $23K. The new loan will be $35K.
No other loans, 2% utilization on my cards, scores in the 770's - 780's F8, 780's - 800 F9.
You still don't provide enough information. Need to know: original amount of the mortgage, and the original amount of both older loans.
Mortgage: $15K left of $178K
Truck: $11K left of $30K
Car (that was totaled): $23K left of $31K - Car was bought in 2019
@HeavenOhio wrote:@JNA1, based on what I've read here, auto loans in and of themselves don't seem to be a big obstacle to obtaining credit cards. They're not like new credit cards, which can be problematic.
However, the inquiries associated with auto loans have caused issues from time to time. That might happen when one's report is spray-painted with inquiries and lenders don't bother to associate them with loan shopping like FICO does. If you only incurred the single inquiry from NFCU, you should be fine right now. If the dealer splattered your report with a bunch of additional inquiries, holding off may be good.
It seems to me that your scores are high enough to absorb any hit the new loan might cause. As mentioned, it's tough to predict exactly what a hit might be without detailed information — and even then, it's tough to deal with the neuances of every score. But my gut says that unless you have a bunch of new inquiries, applying either now or later should be fine.
Yes, I incurred only 1 HP on TU. Citi typically only pulls EX and/or EQ here in my experience, so I don't believe that would even show up. My F8 score dropped 1 point due to the HP.
My DTI is fairly low for my income, and will still be pretty good with the new loan starts reporting.
I will at 21% with the old car loan dropped off.
It will jump to 24% when the new car loan starts reporting.
It is 23% now with the old car loan reporting, it won't be much different.
@JNA1 wrote:
@SouthJamaica wrote:
@JNA1 wrote:
@SouthJamaica wrote:
@JNA1 wrote:The reason I ask is that DW's car was totaled 3 weeks ago and Geico paid off the loan. We bought a new car last week through NFCU. My first payment through NFCU is 8/3, so I assume it won't report until then (but maybe not?).
The loan on the old car should show as being paid off on the 31st, assuming my CU reports the same they have.My question is if the new car loan would adversely affect getting a CC? I'm wanting to apply for the Citi Custom Cash card, but I planned to wait a few months. That said, if the new car loan is going to ding me, I may do it sooner. If my CU reports on the 31st, I'll have an additional $23,XXX in debt gone from my overall debt, so my DTI will look nice, because that was by far my largest account balance.
I <think> I would get the card either way, but if applying during that false DTI dip helps me possibly get a higher SL or lower APR, I'll do it sooner.
You haven't given us enough information to determine, but if
(a) the car loan is your only loan, and
(b) the old loan is mostly paid off
then
once the old loan is gone and the new one has taken its place, you would get a dip in your FICO 8 and 9 scores.
I have a mortgage with $15K left, auto loan for my truck with $11K left, and the auto loan that will fall off later this month was $23K. The new loan will be $35K.
No other loans, 2% utilization on my cards, scores in the 770's - 780's F8, 780's - 800 F9.
You still don't provide enough information. Need to know: original amount of the mortgage, and the original amount of both older loans.
Mortgage: $15K left of $178K
Truck: $11K left of $30K
Car (that was totaled): $23K left of $31K - Car was bought in 2019
OK so once everything is reported, your installment loan utilization percentage will have gone from 20.5% to 21.8%. I would expect there to be zero effect on your FICO scores.
