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option to buy car with minimum impact to credit score

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tparvaiz
Contributor

option to buy car with minimum impact to credit score

Hi,

I am planning to buy a property within the next 6 months and at the same time have a necessity for a car. Can't afford buying car using cash only and will have to borrow.

 

I am looking for the option that will least impact my chances to secure a good mortgage rates.

 

Ideally, I would like to lease a new car. Please advise how to minimize impact to my credit worthiness.

 

Thanks

Message 1 of 8
7 REPLIES 7
SouthJamaica
Mega Contributor

Re: option to buy car with minimum impact to credit score


@tparvaiz wrote:

Hi,

I am planning to buy a property within the next 6 months and at the same time have a necessity for a car. Can't afford buying car using cash only and will have to borrow.

 

I am looking for the option that will least impact my chances to secure a good mortgage rates.

 

Ideally, I would like to lease a new car. Please advise how to minimize impact to my credit worthiness.

 

Thanks


I do not believe there is a way to do it without doing some damage to your FICO scores, especially your mortgage scores.

 

 


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 712 TU 710 EX 708

Message 2 of 8
Anonymous
Not applicable

Re: option to buy car with minimum impact to credit score

You may not be able to pay cash for new now but can you pull together cash to pay for a used car for now?  You can move up in car later.  

Message 3 of 8
Gmood1
Super Contributor

Re: option to buy car with minimum impact to credit score

@tparvaiz 

I guess that would depend heavily on your current scores and overall profile.

If you're already in the upper 700 to 800 range. And have an aged profile.

Buying a vehicle may not affect your scores enough to hamper landing the best rate.

 

Unless you can drive the house to work. I'd focus on what is needed now. That would be an automobile.

 

Rates aren't going up for a long time.

Possibly for several years. 

 

Message 4 of 8
CreditInspired
Community Leader
Super Contributor

Re: option to buy car with minimum impact to credit score


@tparvaiz wrote:

Hi,

I am planning to buy a property within the next 6 months and at the same time have a necessity for a car. Can't afford buying car using cash only and will have to borrow.

 

I am looking for the option that will least impact my chances to secure a good mortgage rates.

 

Ideally, I would like to lease a new car. Please advise how to minimize impact to my credit worthiness.

 

Thanks


Do NOT buy or lease a car 12 months prior to making mortgage application!!!


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 5 of 8
Wavester64
Valued Contributor

Re: option to buy car with minimum impact to credit score

@Gmood1 

"...Unless you can drive the house to work..."

 

Hey, wait a minute, I do that! Smiley LOL






Potential Future Cards
Message 6 of 8
Anonymous
Not applicable

Re: option to buy car with minimum impact to credit score

Too many factors to consider for an accurate answer on this, though generally it's best to wait and go Mortgage first. However, as mentiond some profiles can absorb the hit. Though ideally you'd still want the best rate on the lergest sum of Money and length of said loan, versus the other one. 

 

If you can;t wait 6 months or more for the car, i would suggest buying an "inbetween" car. When i was much younger you could get $500-1K cars that last about a year before anything major is needed. I don't know what that will buy today, but it's probably better than costing you $1K's in interest over 30 years?

 

Message 7 of 8
Gmood1
Super Contributor

Re: option to buy car with minimum impact to credit score

@Wavester64 

I figured as much.😂😂😂😂

 

I actually refinanced a vehicle the month before buying my current home. Didn't affect anything that wasn't already in place. At the time my scores were mid 600s.

Message 8 of 8
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