Jump to content

Credit usage of revolving lines effect on auto loan


CoccoBarocco
 Share

The last post in this topic was posted 3571 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts

In need of purchasing a new car, quick question about revolving balances before I submit one of the ubiquitous "App for Marv".

 

I have 3 revolving major credit cards ($2000, $1000 secured, $600 limits) and 2 revolving store cards (charge accounts, $5500 and $800 limits). I vary between 10-30% credit usage on my revolving lines. No other loans, a number of baddies.

 

My question: if I pay off all my consumer credit / revolving credit balances off immediately, will the 0% credit usage have a positive effect on my auto loan application in ~1-2 months? Or do lenders care more about average credit usage over a long period, and so should I keep the cash for a bigger down payment?

 

Thanks!

Link to comment
Share on other sites


0% across the board only serves DTI, It will come with a Fico scoring penalty.

 

It also takes 1-2 months for those new balances to report to all 3 cra's

 

So you're saying I shouldn't pay off all balances and that keeping ~10-20% is better?

 

My DTI is basically non-existent, despite keeping a 10-20% balance.

My balances, all summed up, don't exceed $1500, with minimum payments in the $50/month range, while my gross income is $8750/month.

Link to comment
Share on other sites

1% util is the FICO sweet spot.

 

 

Having higher revolving credit card balances will lower your auto enhanced fico score, regardless of your previous automotive credit history.

 

Beautiful, thanks all, much appreciated!

 

I'll pay off almost everything and apply for a loan in ~6-8 weeks.

Link to comment
Share on other sites

The last post in this topic was posted 3571 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      187976
    • Most Online
      2046

    Newest Member
    threedegreeclub
    Joined
×
×
  • Create New...

Important Information

Guidelines