Credit usage of revolving lines effect on auto loan

[CoccoBarocco]

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!

[mk_378]

Potential creditors don't have access to any sort of average balance history, they only see the instantaneous amount last reported, the number showing on your CR the day that they pull it.

[nysbadmk8]

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

[CoccoBarocco]

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.

[NewbietoFinance]

1% util is the FICO sweet spot.

[MarvBear]

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

[CoccoBarocco]

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.