Question on Applications & Upcoming Car Lease

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Wildcat_1
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Question on Applications & Upcoming Car Lease

Postby Wildcat_1 » Fri Aug 02, 2013 5:33 pm

All

I know many people advise against opening new credit cards etc with big loans coming up. The only thing I have on the horizon is a new car loan or lease, probably a lease. This will take place around March to May next year. With that said and me wanting to apply for approx 2-3 cards should I hold off applying for the cards now or should this be ok ?

Thanks all

WC


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Z06Biker
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Postby Z06Biker » Fri Aug 02, 2013 6:08 pm

I'd hold off. Getting the best rate on an auto loan/lease is probably going to save you a lot more $$ in the short AND long run than having a slightly higher credit card APR if you applied (and were approved) for them after the car purchase.

Why do you need 2-3 cards immediately anyway?
AMEX: PRG Gold, Business Simply Cash, Business Costco, BCE.
Chase: United MileagePlus Club, Sapphire Preferred, Amazon Rewards
Barclaycard Arrival World Mastercard
HSBC Cash or Fly World Mastercard
USAA World Mastercard, USAA Platinum Mastercard
Wells Fargo Business Platinum
USC Credit Union Mastercard

Wildcat_1
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Postby Wildcat_1 » Fri Aug 02, 2013 10:37 pm

Z06
Thanks for the reply. The reason to apply for the 2-3 is really to start making my spend work for me with miles and cash back. I currently only hold 2 cards with great low rate APRs but don't do anything else. I was planning on PRG, CSP & BCP applications in one swoop to minimize credit hit, get some nice sign up bonuses and start gaining the benefit of the cards.

My hope and thought was by taking this approach now that it wouldnt hit too hard (current CS is high 7s) especially doing 3 in 1 day but wanted to ask the question for feedback like you have been kid enough to provide.

Thanks

WC

MemberSince99
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Postby MemberSince99 » Sat Aug 03, 2013 10:29 am

It really depends on how many you have now vs how much the inquiries will drop your score. We don't know how many you currently have, and while your CS is currently high 7s, once you get to that range inquiries can tend to hurt, but we obviously have NO way to say well your current score is 782 and one inquiry will drop it 3 points, 2 will drop it 10 points and 3 will drop it 15 points, I mean we have NO clue what it will do other than drop your score, nor do we have any idea which bureau(s) will be pulled for your car loan, so it's just a guess.

In general all we can say is, as Z06 said if you want the best rate on this loan, wait. If you know from your specifics you are fine as is, then app for the cards, but if you knew that you probably wouldn't be asking here. So I would say given all that I agree with Z06 and wait to be safe.

Wildcat_1
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Postby Wildcat_1 » Sat Aug 03, 2013 11:54 am

99
Haha I like your logic on asking the question. I mentioned above I currently only have 2 cards today both revolvers always paid off before due.

Thanks both

WC

Wildcat_1
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Postby Wildcat_1 » Tue Aug 06, 2013 10:30 am

99
Just wanted to ask one mor question on this if I may. Trying to decipher these app o Rama type threads. If I were to apply for a card per day my understanding is that you may see a 5-10 point score drop per card as each card is a separate pull on a separate day. Am I right in deciphering that if I were to apply for say 4 cards in 1 go (different providers but same day) that it would only be one hit (5-10 points approx) or that you still get hit per card even though applying in same day ?

Thanks

WC

MemberSince99
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Postby MemberSince99 » Tue Aug 06, 2013 12:26 pm

It doesn't matter whether you app same day or sequential days, you will get the same number of apps. For credit cards an app (inquiry) is an app. If we are talking mortgage or auto loans, then within a 30 day period I believe they will lump them together in terms of what it does to your score, but for credit cards, each inquiry is going to affect your score.

So it doesn't matter, if you want 4 cards, you are going to have 4 inquiries that do affect your socre and it won't matter when you do it. The only good part of doing them all at once is they all age off together. Othewise, it won't help anything.

Wildcat_1
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Postby Wildcat_1 » Tue Aug 06, 2013 5:11 pm

99 Thanks

I thought in some of the FT threads etc people were saying the same thing about applying all at once minimized hit as those providers using same credit agency could put them together etc. Sounded strange to me as well but wasn't the first time I had seen it unless I read it wrong.

WC



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