I've been working at getting everything ready later this summer for a new auto loan. I have a credit union available to me through my work, and wish to join. However I've been with BofA for 5 years. Does the time I have a checking/savings account mean anything? I want to apply with the C/U for the loan, but if not approved there I'll need to go elsewhere. With a current FICO of 640, and a 6 year old unpaid charge off/repo on two of my reports, I'm a little worried about approval at a good rate. Also, how long does a new account adversely affect FICO? I'm not worried about an inquiry, I currently have none showing, but rather just the effect of a new account. Will the new account hurt my score 4 to 6 months from now, or will the damage done by a "new account" be offset by an additional good tradeline and better debt to available credit ratio? thanks, dan
Unless you have some serious money in their bank, NO. I would keep the Bank of America opened and open the FCU account, then depending on who approve's you for car loan, stick with them. You need a little leverage in case credit union doesn't approve.
The credit unions have always been good to me. But, last year, BOA offered me a better rate than the credit union (7%). When I got to the dealer (Honda), they beat BOA by quite a bit. Saved me $20 a month. The moral of the story is to keep all your options open.
