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skinny
3 boys and a princess!
Member since 11/08 8178 total posts
Name:
Momma
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Opening lines of credit after recent home purchase
We just closed on our first home last month. Our car is in bad shape and I'm trying to convince DH to take advantage of the Cash for Clunkers deal that seems to be ending this week.
Assuming we can afford the payment, is there any reason not to open a new line of credit now? Once you close, does the mortgage company continue to look at your finances?
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Posted 8/4/09 10:22 AM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Opening lines of credit after recent home purchase
No once you close you are fine.
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| Posted 8/4/09 10:51 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Opening lines of credit after recent home purchase
before closing- NO
after closing - YES
good luck!
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| Posted 8/4/09 11:19 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Opening lines of credit after recent home purchase
we purchased a new car the week after we closed on our house.
the only "issue" we had is that the loan officer on the new car couldn't factor in our new mortgage b/c we hadn't made a payment yet...or something like that, so I think our interest rate was slightly higher (like 1/4 %) and this was when the credit crunch hit the fan and they were tightening up significantly.
but no problems at all. I am sure you will be fine.
good luck!
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| Posted 8/5/09 11:36 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Opening lines of credit after recent home purchase
Posted by Ophelia
we purchased a new car the week after we closed on our house.
the only "issue" we had is that the loan officer on the new car couldn't factor in our new mortgage b/c we hadn't made a payment yet...or something like that, so I think our interest rate was slightly higher (like 1/4 %) and this was when the credit crunch hit the fan and they were tightening up significantly.
but no problems at all. I am sure you will be fine.
good luck!
What would the mortgage have to do with the car's interest rate?
Sounds like a load of garbage served by the finance manager at the car dealership.
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| Posted 8/5/09 12:19 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Opening lines of credit after recent home purchase
Posted by ave1024
Posted by Ophelia
we purchased a new car the week after we closed on our house.
the only "issue" we had is that the loan officer on the new car couldn't factor in our new mortgage b/c we hadn't made a payment yet...or something like that, so I think our interest rate was slightly higher (like 1/4 %) and this was when the credit crunch hit the fan and they were tightening up significantly.
but no problems at all. I am sure you will be fine.
good luck!
What would the mortgage have to do with the car's interest rate?
Sounds like a load of garbage served by the finance manager at the car dealership.
he said it couldn't be used as established credit. I wasn't there, we purchased the car in Massachussettes from a bank in Mass...so who knows.
it's just what was relayed to me.
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| Posted 8/5/09 2:15 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Opening lines of credit after recent home purchase
Posted by Ophelia
he said it couldn't be used as established credit. I wasn't there, we purchased the car in Massachussettes from a bank in Mass...so who knows.
it's just what was relayed to me.
Yeah. They relayed a big bowl of BS to you. 
Having a mortgage on your credit report should have no bearing on a car loan.
If anything it would lower your chances of getting a better rate because it adds to your DTI ratio.
But since it wasn't there, they should have lowered your rate, not raised it.
Oh well what can you do I suppose since its typical car dealership scam BS. That's their job, to get the best deal for them and screw the customer. If they would have tried to pull that stunt with me I would have laughed at them.
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| Posted 8/5/09 2:30 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Opening lines of credit after recent home purchase
Posted by ave1024
Posted by Ophelia
he said it couldn't be used as established credit. I wasn't there, we purchased the car in Massachussettes from a bank in Mass...so who knows.
it's just what was relayed to me.
Yeah. They relayed a big bowl of BS to you.
Having a mortgage on your credit report should have no bearing on a car loan.
If anything it would lower your chances of getting a better rate because it adds to your DTI ratio.
But since it wasn't there, they should have lowered your rate, not raised it.
Oh well what can you do I suppose since its typical car dealership scam BS. That's their job, to get the best deal for them and screw the customer. If they would have tried to pull that stunt with me I would have laughed at them.
yeah, I guess. they said the loan was ON the cr, but since we hadn't made a payment...somethng about the standing of the loan....
of course, what you say is true...but in the grand scheme of things, I will try not to let a 1/4 of a percentage point mess with my head too much. c'est la vie. I was just happy, given the condition of the credit market, that we got the rate we did in the first place.
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| Posted 8/5/09 2:41 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Opening lines of credit after recent home purchase
Posted by Ophelia
of course, what you say is true...but in the grand scheme of things, I will try not to let a 1/4 of a percentage point mess with my head too much. c'est la vie. I was just happy, given the condition of the credit market, that we got the rate we did in the first place.
True. It isn't that big of a deal.
Just remember the credit market isn't as tight as people think or the media claims it is. If you have good credit, banks are willing to lend because that is how they make money.
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| Posted 8/5/09 2:52 PM |
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