Multi loans at once

[Stugotsv10]

So a friend of mine has about a 760 score, no blemishes very few inquiries....  He decides to go out and get, a new car, new motorcycle, Jet ski AND his wife a car basically all in a week.. now im sure none of the lenders saw the other loans yet so they approved (He makes really good money)

My question is, whats gonna happen when it ALL hits?? is he gonna sink like a stone on score? I have never seen anyone do it this bad so I was just wondering what to expect when all loans hit

[Anonymous]

I don't think he'll sink like a stone. And, of course, everyone's profile reacts differently. But he'll see a normal new account dip and then with good payment history, he'll get the points back again. If he can afford those things, I applaud him. First, it's helpful to our consumer driven economy. But second, the reason we work hard to make our credit good is to use it when we need to or want to. I worked my butt off to get my scores where I could buy a house and then I bought a house. I know when the loan first reports, I'm going to take a hit. It's for good cause though. 

[Stugotsv10]

maybe a "moral" question tho, do you feel its dishonest? I mean we all know when you apply for loan 2,3 etc that they are NOT seeing the one just closed on, so are they actually taking into account your actual credit situation? 

[JeffMO]

If he truly makes good money and isn't putting himself past his means, then i personally wouldn't care what the banks thought.  Just my 2 cents 😁

[Anonymous]

Obviously finaces aside, if he makes enough to afford all those things. The real issue would be that 760 isn't really that high when you start on an app spree. CC are one thing because you don't have an immediate UT situation, like you do with several auto/sport loans. It all depends on how much he put down on each one as well. Having 4 loans opened in one week would see a significant point loss all from HP's, new accounts and lastly UT thresholds on each loan. 

Getting back to the finaciing thing, I'm not sure how the issue would be handeled when all those new monthly payment amount hit the CR.

Doing it so close together prevents them getting a good look at DTI, if he had spread them out over several weeks or longer. Then the Lender would have seen those other commitments on his report, and would have played into approval decision. Not to mention doing them so close to together means he shouldn't have taken a big enough hit on his scores, thus not affecting APR for the next one. Spread out futher I'd imagine the rate would go up several times.

The major issue is affordablity, and as long as he can there's no issue. The scores will rebound over time.

[Anonymous]

Might take a little or a big hit, depends on quite a few factors including what is on his report already.

As long as he does not need a loan or credit product in the near future, all is good in the neighborhood.

If he is decent income wise, he can always pay off what is necessary at the time.

Sometimes even tho people can pay cash for possessions,

they use other peoples low or no apr money just because they can....and it may be financially wise too.

[sccredit]

Back in 2014 I refinanced my mortgage to get rid of PMI, after the mortgage closed we replaced DW's car. Then about  amonth later my truck died and I financed a new truck. End result - 3 closed account (mortgage and 2 prior auto loans) and 3 new accounts (mortgage and 2 new auto loans). Scores dropped about 40 points and went back up over the next 6 months. Started at 750 and after 6 months was at 785. Nothing time won't heal.

[805orbust]

+1 I think he'd be seeing 700-710 for a bit with an increase after 6 months, and then huge after a year. If he can afford it, I ain't mad at him. It's all good 🙂