Applying for Personal and auto loan..which comes first?

[Sitori]

If I need to get both a personal loan and an auto loan which would be the best to apply for first as far as affecting score would be concerned? I know it will take a hit during both processes so I’m not sure how to go about doing it.

Do they get reported right away? If I apply for both on the same day would that make the most sense as to not have them reported separately (for inquiry’s etc)

Obviously both require a decent score and I don’t want to have a huge decrease if I get one approved and a couple days later try to apply for another and have issues.

Any suggestions?

I was hoping to do both in January. I’m not sure if they would show up on CR within a couple of days or if it would take the entire month (for inq and approvals/new accounts etc)
The loan will be for around 15k
Auto would be around the same I think. I’m most likely using my CU for the auto loan. And I don’t have much wiggle room for big hits to credit. I need to stay in the upper 600s for approvals/decent interest rates. I’m only now around 680ish.

Thanks

[Anonymous]

Auto loan, you want the best scores for that to get the best rate, especially if you’re on the border between two different rates

[Sitori]

Ok.

[Sitori]

Whoops hit the button by accident ...
Should I apply for the personal right after so it doesn’t hit my reports? I’m not sure how soon auto loans show up.

Thanks

[coldfusion]

---

@Sitori wrote:
Whoops hit the button by accident ...
Should I apply for the personal right after so it doesn’t hit my reports? I’m not sure how soon auto loans show up.

Thanks

---

Depends on the issuer.  I can tell you that BoA reported my auto loan in 30 days. 

If you're going to be concerned about the ordering and the timing you also have to take into consideration which CRA(s) the issuers will pull as well as the auto dealer, as they often will also run a HP. 

[Anonymous]

Personal loan first. Personal is much harder to get at a good rate. Things like inquiries and new accounts (the car loan for example) matter when you are shopping for a personal loan. Those things matter a lot less to an auto lender. The are focused on your DTI ratio and can you make the payments. The lender is somewhat protected by the asset. 

If you get pushed out of the "best rates" category for a personal loan you will end up with credit card type rates (high teens). If you get pushed out of the best rate category on auto loans to the next tier you are still talking about a sub-7% rate.

[Sitori]

Sounds good. I figured it would be harder to get approved for the personal loan(I’m going to try to go with lightstream). I know both loans require 660, but 660 for auto means second tier and 660 for lightstream means approval. If I’m under I’ll get denied. So like you said, it’s probably best for the personal loan first since if I’m under 660 for auto I won’t necessarily get denied.

Thanks guys!!

[Revelate]

Auto loan inquiries are buffered for 30 days: won't count against you during that grace period.

It's right to say personal loans are harder to get but those inquiries will count, ergo you can do the car then personal and have the same peak score for both... you don't get that the other way around (unless the inquiry doesn't drop you, depending how many you have it can be zero impact).

Admittedly this requires the auto inquiries to be coded correctly: if you're going from a dealership they almost assuredly will be, but if you're arranging financing through a CU they may not.

[randomguy1]

Would try to do both loans at the same place. Joining a local credit union makes sense. Make sure you apply to the loans either in person or in the phone to see if the lender would combine pulls. It is quite possible they will not, but it does not hurt to ask. Might want to read up on data points on this. If applying online, they will usually be two seperate HP. I would also venture to guess that a CU would be more understandable when applying for two different credit products at once.

[Sitori]

Would one drop the score (initially) more than the other? if I were to do the personal loan first and then decide to just lease a car instead of finance, what would the impact be on score? It would be a new account, installment loan etc? Does anyone know the initial hit that usually gives you?

Both will be pulling from EQ