Let card report or get a loan before?

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nismoZtuner
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Let card report or get a loan before?

Postby nismoZtuner » Sat Nov 15, 2014 3:56 pm

I plan on getting a 23k car but also want to deal it down. I have my PRG card which closes on the 18th- my reported balance was about 1200 for last month..Then I have my CSP card that closes on the 26th with a 2700 balance. I can pay them all off but not sure if the dealership will have the car for long (still have to see it). Discover gave me my new score that went up 18 points after my Marriott card was paid of- so my score is now 748. Well will make a difference if I get a loan now or until they report? I'm guessing once those cards report a $0 balance my score may jump 20 or so points I think?
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22


Nixon
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Postby Nixon » Sat Nov 15, 2014 4:27 pm

nismoZtuner wrote:I plan on getting a 23k car but also want to deal it down. I have my PRG card which closes on the 18th- my reported balance was about 1200 for last month..Then I have my CSP card that closes on the 26th with a 2700 balance. I can pay them all off but not sure if the dealership will have the car for long (still have to see it). Discover gave me my new score that went up 18 points after my Marriott card was paid of- so my score is now 748. Well will make a difference if I get a loan now or until they report? I'm guessing once those cards report a $0 balance my score may jump 20 or so points I think?


I wouldn't fret about it. You're probably already Tier 1 already and by far. :)
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nismoZtuner
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Postby nismoZtuner » Sat Nov 15, 2014 5:20 pm

Nixon wrote:I wouldn't fret about it. You're probably already Tier 1 already and by far. :)


Well I am 22, close to 3 years of on time payments and credit history, no badies on my report besides the balance that chase and Amex reported last month.. And this will be my first loan besides having credit cards (check signature)
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22

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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Nov 15, 2014 5:26 pm

Will the financing be from the dealer, a bank, or credit union?

Talking to the lender would be best.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

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nismoZtuner
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Postby nismoZtuner » Sat Nov 15, 2014 5:34 pm

CarefulBuilder14 wrote:Will the financing be from the dealer, a bank, or credit union?

Talking to the lender would be best.


Well people have told me to go thru the dealership since they can get me good banks with low apr- when my brother bought his car the dealership used well Fargo for his loan. My brother doesn't have much credit history or cards compared to me and he's paying 9% apr..
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22

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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Nov 15, 2014 5:41 pm

Look at credit unions, too. You might get a surprisingly good APR.

9% is very high, even for someone with a short history.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

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nismoZtuner
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Postby nismoZtuner » Sat Nov 15, 2014 7:06 pm

CarefulBuilder14 wrote:Look at credit unions, too. You might get a surprisingly good APR.

9% is very high, even for someone with a short history.


I'll check some out, I know there's 2 in my city I'm hoping for something in the 1.99-2.8 range- hopefully that's isn't too much I'm hoping for ..
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22

popamode72
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Postby popamode72 » Sat Nov 15, 2014 7:09 pm

nismoZtuner wrote:I'll check some out, I know there's 2 in my city I'm hoping for something in the 1.99-2.8 range- hopefully that's isn't too much I'm hoping for ..


Sometimes when you apply for a membership with DCU, you'll get preapprovals after you're done. I already had a preapproval for an auto loan when I did that but the downside is having to take another INQ for anything else that they have.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

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Vattené
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Postby Vattené » Sat Nov 15, 2014 9:08 pm

For what it's worth, I was in a very similar situation as you when I financed a car in May. I was worried about the rate I would get, too, because even though I had a decent score I also had a thin profile with nothing but credit card & store accounts. This was just a few months into having my Discover card, so it was mostly store accounts with a much lower total available credit than you. I went through the dealership and got their top tier rate (1.9% for the model I got) with a 740 FICO.

EDITED TO ADD: I am 23.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
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AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

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Postby flan » Sat Nov 15, 2014 9:51 pm

nismoZtuner wrote:Well people have told me to go thru the dealership since they can get me good banks with low apr- when my brother bought his car the dealership used well Fargo for his loan. My brother doesn't have much credit history or cards compared to me and he's paying 9% apr..


Car dealerships can give you a good deal, and they can screw you. And they're full of people who lie for a living, so it's kind of hard to know if you're getting a good deal, or not, unless you have a good idea what you can get elsewhere.

Just using some numbers you've used: a 5 year loan at 3% will incur roughly $1560 in interest charges. A 5 year loan at 2% will be 1030 in interest. At 5%, it'll be 2650.

One of the ways dealerships make money is by pushing up the rate on a loan. The lender says "yeah, 2.5% for him is what we'll do", they come tell you "sorry, 4% is the best we can do, but that's still a great rate", and pocket the $800 in extra interest.[1] If you know that your bank is willing to lend to you at 2.75%, they may well give you the 2.5%.

Don't ever walk into car dealership to buy a car without planning to pay cash, know you can get the top tier financing, or having financing arranged elsewhere. You don't have to use the financing you've arranged, but it's a very useful bargaining chip.

[1] their payment scheme is more complex than that, and often includes the risk you default, when they dont' get the extra money. But it's still a rip off, and there are no disclosure requirements, so you don't know that's what they're doing.



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