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Posted in Auto Loans
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Question By
scoobirex

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Should I apply for a new credit card or ask for a CLI before applying for auto finance?
Hello CK,

I've been lurking around the forum for quite some time now and have searched high and low for a situation similar to mine but, nothing has popped up for me.

I am self-employed, recently married, college graduate (MS in Engineering), that just turned 34. I have never taken a loan out in my life and have always lived within my means. I worked three jobs throughout college and grad school and never took a student loan (grants saved my butt) and paid for my last new car (2002) all cash. I had a credit card through college but never used it. My line of credit was cancelled by the issuer after years of inactivity. I have had a total of four lines of credit, two of which are currently active.

I applied for a my first credit card through Capital One weeks before getting married and was instantly approved with a low line of credit. Then I applied for my second line of credit through Chase a couple months later and was immediately approved with a much larger line of credit . I have kept my utilization under 30% and have paid in full at the end of every cycle (sometimes paying a little bit off during the middle of my cycle to ensure a low utilization rate). My current credit history has been good but very short. The Capital One credit line is going on 5 months now and the Chase credit line is going on 3 months.

My CK score is a 693 and is continuing to go up every month.

My question to the community is should I apply for another credit card (travel rewards) or ask for a CLI through my oldest creditor before or after I apply for an auto loan? Should I be patient and let my creditors offer me a higher line of credit? I would like to get the most competitive auto financing rates so I can buy a new car for my wife within the next 3-6 months.

Thanks!

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I recommend enhancing your education further by reading the articles on this site so you can learn how credit works and what is needed to build your score.  I have degrees in accounting and management and learned a lot here, resulting in the ability to buy a new car last year and having the other benefits that go with having that score.

Reply by
scoobirex

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Thanks jwsister, that was an incredibly insightful response. I have done a bunch of research on this site and have used google to search deeper into my question. Unfortunately, continuing to search for hours on end through a bunch of threads was not at the top of my list. However, trying to juggle a business and a happy marriage is at the top of it. 

You appear to be very knowledgeable about credit; I was hoping that a member of the community would have a simple response or just point me in the right direction. Furthermore, I did not realize that I could enhance my education on CK. I did not know that they were accredited educators. Did you get a degree from CK? I think I'll try to enhance my knowledge base by asking my question again to someone willing to help.

Thanks.

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