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Should I utilize dealership's $0 down, no payments for 60 days to raise my credit score?
I was approved for a $35,000 auto loan through Capital One with a pretty high interest rate (9% - %17) depending on the vehicle that I chose. My Experian credit score (the bureau that my Credit Union uses) is 615, but I'm sure that I can get it to at least 640 which would put me in the B range for my credit union with an APR of 6%. I plan on paying down over $2,500 in credit card debt over the course of two months. During this time frame, would the dealership report my first two payments as paid on time? I'm assuming so...

Can you guys pitch in and let me know if it would be wise to utilize the $22,000 high interest bearing loan from Capital One and take advantage of the dealership's $0 down, no payments for 60 days deal and then refinance with my credit union in two months when my CC is around 640? I'm okay paying the higher monthly car bill for a couple months to save thousands in the end. Am I correct with my notion that the dealership makes more money off the two months where a payment wasn't going towards the loan balance and that my loan term is extended by two months (if I don't refinance).

I don't want the loan to originate with my Credit Union for reasons beyond the scope of the question. PS, Capital One also ran my credit just a day before it increased to the 600s. My Credit Union ran it the exact day it increased.

Thanks for your input.

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I am not certain what you are asking or what you are try to accomplish. However here are some of my observations...


With dealership's 0 down and no payment for 60 days, is it limited to financing thru them or perhaps thru manufacture captive financing?. That 0 down and 60 days no payment should have nothing to do with CapOne, because CapOne owns the debt and you are following its policy/terms and not dealership.


The term remains the same, if its 60 months loan then you make 60 payments, it just delaying the start date by 2 months, you don't make 62 payments. With most auto loans the first payment due date are usually month or two after the purchasing date anyways, 


Your score tend to drop when there is new account reported, especially with a loans as you are taking on more debt. So I don't think refinance it after two months would work in your favor. Not saying it can't be done, just "I" don't think it would.

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