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bradk14

MOVING/NEW JOB: When is it okay to apply for credit/car loan with new salary/address?

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Within the next two weeks (give or take a few days), I'll be relocating from NYC to Las Vegas for a new job. Gross salary increase is ~25K. Right now my credit is okay (TU FICO 8 is 769 as of 7/27). Before some balances hit because of the relocation, I'd like to take advantage of it. namely a car, which is almost require there, and a liability here. I've been window shopping at Carmax and am pretty much set with what I want, so I'm tempted to start the pre-qualify process through them, but I'm wondering if it would be a mistake to represent my life a couple of weeks ahead of reality.

 

I have several thousand in cash at the moment (yes, I am historically irresponsible) and I will be getting roughly another $15K after separating from my current job, but I'm not keen on paying down card balances a lot until I can cover the down payment and whatever other necessities that pop up with the cash.

 

also I realize Carmax may not be the ideal financer so I'm open to suggestions but I must confess I've never bought a car before and I also need to hit the ground running so I may be vulnerable to quick decisions.

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There are far better options than CarMax if you are looking in the area where you are moving.  You should also find MUCH better deals than you would have had in NYC...

 

Obviously the used market carries a different set of issues to look for as heat can take a very different toll than salt.  However, there are PLENTY of decent used vehicles since, contrary to your belief, plenty of people function without a vehicle in Vegas and, having decided they don't need it, will sell it for a decent price...

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I realize my experience is limited, but while it may be possible to go without a car, it's not practical. for example, from my apartment to my job would require a minimum of 1 bus transfer and a mile of walking, which is not fun in 110+ degree weather. and that turns what would be a 10 minute commute by car to an hour long commute at best. I'm not a fan of cars over mass transit, especially living in NYC, but I have to recognize the situation for what it is.

 

But I may not have been entirely clear with my question. I'm not really asking which state is best to buy a car in, but rather is it okay to use near future information on credit applications or must I wait until I'm physically relocated?

 

As another example, I will be paying rent by credit card so I'd like to do better than my 1.5% back cap one and apply for a citi double.

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I realize my experience is limited, but while it may be possible to go without a car, it's not practical. for example, from my apartment to my job would require a minimum of 1 bus transfer and a mile of walking, which is not fun in 110+ degree weather. and that turns what would be a 10 minute commute by car to an hour long commute at best. I'm not a fan of cars over mass transit, especially living in NYC, but I have to recognize the situation for what it is.
 
But I may not have been entirely clear with my question. I'm not really asking which state is best to buy a car in, but rather is it okay to use near future information on credit applications or must I wait until I'm physically relocated?
 
As another example, I will be paying rent by credit card so I'd like to do better than my 1.5% back cap one and apply for a citi double.
You are fine using the information from your current job. Typically, changes in jobs are only relevant when applying for a mortgage. Make sure you look on these boards for the best credit union to get preapproved. I would use penfed or navyfed (if you can get into navyfed). With your scores you should be able to finance in the 2% to 4% range depending. Good luck and enjoy your new job.

Sent from my SM-N950U using Tapatalk

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I just moved in mid July to a new state. I drove the rental truck and my wife drove her SUV. We sold the old second car before the move.

 

got to new location and had 2 or 3 credit cards close a statement in the first week with the new address. So the new address updated on credit files quickly. 

 

I leased a new car for 39 months one week after arrival. No problem at all. A few days after I took the car home, the finance manager called me and asked for a utility bill or anything with my new address on it because it was a new address. GM Financial did the lease, it was easy. 

 

$0 down out the door.

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I just moved in mid July to a new state. I drove the rental truck and my wife drove her SUV. We sold the old second car before the move.
 
got to new location and had 2 or 3 credit cards close a statement in the first week with the new address. So the new address updated on credit files quickly. 
 
I leased a new car for 39 months one week after arrival. No problem at all. A few days after I took the car home, the finance manager called me and asked for a utility bill or anything with my new address on it because it was a new address. GM Financial did the lease, it was easy. 
 
$0 down out the door.
Awesome news. Enjoy Vegas!

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I get that you were not asking which was the best State to make the purchase in.  My reasons for asking had a lot to do with your financing options though...a Nevada lender is far more apt to work with someone that has a Nevada address.  They see people who have relocated on a regular basis.  As long as your employer out there can confirm the job and salary, you will have far better options in Nevada than in NYC. 

 

The drive itself is not horrible.  I would not want to be towing a trailer that had the car, but the drive itself is easily doable inside of three full days.  I used to do Austin to Savannah and to Fort Lauderdale as a very lengthy overnight, same with drives from the Houston area to about an hour south of Chicago.  That being said, a Nevada dealership and lender would rather see a Nevada address just as a NYC dealer would be a little wary about financing to someone with an address being listed in Nevada.  Part of their equation is looking at the hassles involved with a repossession if something goes bad down the road...

 

From the lender's standpoint, it becomes easier if the job is consistent with your current work history and is essentially a promotion. 

 

I would add that, with the scores listed, even a used loan should be available under 3%.  Some of the Nevada banks have some very good deals that put CU's to shame.  There are still some free money deals out there through the manufacturer financing options on new vehicles for those with Tier 1 credit. 

Edited by centex

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3 hours ago, nyquil556 said:

You are fine using the information from your current job. Typically, changes in jobs are only relevant when applying for a mortgage. Make sure you look on these boards for the best credit union to get preapproved. I would use penfed or navyfed (if you can get into navyfed). With your scores you should be able to finance in the 2% to 4% range depending. Good luck and enjoy your new job.

Sent from my SM-N950U using Tapatalk
 

 

so you are saying claimed income doesn't have any impact on approvals/CLs/loan terms?

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5 minutes ago, centex said:

I get that you were not asking which was the best State to make the purchase in.  My reasons for asking had a lot to do with your financing options though...a Nevada lender is far more apt to work with someone that has a Nevada address.  They see people who have relocated on a regular basis.  As long as your employer out there can confirm the job and salary, you will have far better options in Nevada than in NYC. 

 

The drive itself is not horrible.  I would not want to be towing a trailer that had the car, but the drive itself is easily doable inside of three full days.  I used to do Austin to Savannah and to Fort Lauderdale as a very lengthy overnight, same with drives from the Houston area to about an hour south of Chicago.  That being said, a Nevada dealership and lender would rather see a Nevada address just as a NYC dealer would be a little wary about financing to someone with an address being listed in Nevada.  Part of their equation is looking at the hassles involved with a repossession if something goes bad down the road...

 

From the lender's standpoint, it becomes easier if the job is consistent with your current work history and is essentially a promotion. 

Thank you. I do have an offer letter (which I am using as proof of income for my apartment application). and the lease should provide proof of residence, at least I believe it will help for the DMV. But of course I'm still waiting for final approval on the apartment so I don't technically have a NV address yet, but I won't be applying for any credit until I do (in fact, one of the first things I'll be doing is updating all my existing accounts with the new address ahead of the move itself).

 

I guess one of my points of naivete regarding applying for a loan is a chicken or the egg thing. some articles I've read say some loan applications require the VIN while others don't and clearly without being able to commit to a specific vehicle in advance, I don't have a VIN, just an idea of what I'm wanting to pay.

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Buy the car when you get there and arrange financing in advance (the latter is standard advice for buying a car, regardless of circumstances).

 

You aren't the first person to get a new job and move to a new state.

 

The lender will tell you what documentation they need.

 

If your FICOs are in the mid- to high-7s this will be very easy.  

Edited by cv91915

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I would recommend that you apply when you can prove your credit history will match your application history.  I would also change my address as soon as possible and make sure it gets updated to your credit files via your other creditors.  If not, that will raise a "red flag" concern and cause a bit more scrutiny of your application.

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3 hours ago, MarvBear said:

I would recommend that you apply when you can prove your credit history will match your application history.  I would also change my address as soon as possible and make sure it gets updated to your credit files via your other creditors.  If not, that will raise a "red flag" concern and cause a bit more scrutiny of your application.

I did go through most of my accounts and update my address to the new one but obviously it won't have any affect until at least one of them reports it, if it even works that way.

 

I might have mentioned it earlier but I do have an offer letter. I also now have a lease  although it's been signed only by me and not the apartment management yet.

 

 

 

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so I hit up carmax. they pulled exp (at least) which is 753. I even proceeded to pay experian for the auto loan score but not sure that actually got me anything.

 

new address is showing up on the exp it seems.

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welp. 'pre-approved' for 5.something% for 72 months and 4.something% for 60 months. didn't seem fazed at all that I am pre-move. just said it's a matter of just selecting a vehicle and running a full credit app whatever that means.  said pre-approval is good for 30 days.

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Shorten the term on that loan considerably.  

 

A good litmus test for affordability is 36 months.  

 

If the 36-month payments are too high you are looking at cars you can't afford.  

 

You're getting a nice raise, so that should help a lot (assuming you aren't moving somewhere with a significantly higher cost of living).

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21 hours ago, cv91915 said:

Shorten the term on that loan considerably.  

 

A good litmus test for affordability is 36 months.  

 

If the 36-month payments are too high you are looking at cars you can't afford.  

 

You're getting a nice raise, so that should help a lot (assuming you aren't moving somewhere with a significantly higher cost of living). 

 

moving from NYC to Las Vegas so cost of living is going down considerably, tho I am paying more for my apartment. and need to factor in a vehicle.

 

Are the rates really that bad? I went to close my account at MCU and I saw they were advertising a ~1.75% APR but they're also a horrible CU and I can't get rid of them fast enough.

 

I'm not committed to anything just yet, I just wanted to get in before balances related to moving hit my CR and impacted my score. does DCU require me to have an account with them? I'm not a member of any CU currently so I'm not sure on the etiquette of joining really just to apply for an auto loan.

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okay, all. thanks for the advice. I applied for DCU last night. During the process they said I was pre-approved for both a Visa and an auto loan, for whatever that might be worth. They just asked for my social security card (which I didn't initially supply because they said it was only necessary if you received it after mid-2011 I believe). So we'll see where that goes.

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