Im planning on buying a car soon (for work) and was wondering if I should put $4000 down to get a better interest rate....OR....should I use it to pay down my Discover card which currently has a balance of $7500 with a credit limit of $8200. I know my utilization rate is affecting my credit score which is currently at 640 and by paying it down to $3500 would put me at less than 50% utilization.
Am I better off paying down my Discover to get a better score and then a better rate. OR should I use it to try and get a better interest rate on the auto loan.
My brother got a loan through Capital One and he said they don't even ask for a downpayment, but Ive heard credit unions, banks, and dealers usually will give you a better interest rate with a bigger down payment.
Another question: What happens to my credit score after I get an auto loan?
Any help or advice is greatly appreciated!