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Posted in Auto Loans
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Eskiedog

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Preparing for an AutoLoan
I was recently turned down for an auto loan-debt vs. income ratio too high. If I pay off one of my cc's will that help. or is it best to save the $ for a down payment?

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Wait at least 6 months

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before applying again.

Applying again to soon will only make things worse. Creditors see it as an act of desperation. Use that time to pay down your debt, If you can, save up a for a bigger down payment as well.

Next time you want to apply try doing some "mining" first.  Go onto your bank or credit union website and look at their online offers for loans. Check out their calculators etc. do this 2 or 3 times in a week Just don;t apply for the loan on line.  If your credit is in a good situation the bank will probably send you a "Pre-Qualified " offer by mail.  I did this with my Credit Union and received an offer for $25000 at 2.87%  Not a bad deal...   You will do better if they are pursuing you and not the other way around.

Good Luck

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Do both, lowing your debt to income ratio improves your score and good debt managing character as well as saving up for a down payment. Make sure you find a car price within your budget, and don't go over no matter how nice the car is. You are in control of your financial outcome. Good luck my friend...

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