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BookooCredit711

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Buying a car and credit utilization
I had a score of 691, I opened a new card and one of the features was getting 200 dollars cashback for spending 1000 in 3 months. Needless to say I used it to do all my Christmas shopping and take advantage however my credit score dropped to 650 on here and dropped 70 points on my FICO just from utilization. I am buying a new or preowned car soon with around 8,000 down and a trade in and have another 1000 I could put down or use towards paying down my cards but the card simulator said I only would get from 650 to 666. Could I potentially get my credit back where it was or better given I'd be paying off within a month of the balance or am I really losing more credit score then gaining paying it off and should keep the extra 1000 for a down payment. (Will be financing most likely 7000 +/- for 2-4 year term) My total credit limit is 2,850 and I currently have around 2000 used.

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Well your fico score will determines the interest rate you will be getting. Since utilization has an immediate impact your score, can you hold off on buying a car until you improve the score by paying down your credit card? if you get your utilization down, it will have an almost immediate boost. 2000 of a 2850 is 70%. Lower that first and wait for your credit card company to report that low balance to raise your score. In the long run you'll save money with a lower interest rate. 

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