Your score will drop 30 or 40 points quickly. My score was above 800 before I bought my 4Runner. My mortgage is zero. My auto was owned. No credit cards. No late payments ever. I bought the 4Runner, opened two credits cards a couple of years later with 0 interest and balance transfers. My score dropped 40 points. Still no late payments. I recently canceled the cards too.
It is a system that you will rarely win in. I just try and play their game against them. You know 0% interest and transfers and keep rolling those as needed.

Shop around for the best interest rate. I imagine the rate has more to do with your score than anything else. Sounds like your debt to income ratio is not a problem, so your interest rate will be affect more by your credit score. Just have a solid loan at the best rate before you go shopping for the F150, you could use that as a bargaining chip when they try to get you to use ford financing. Good luck and congrats on the vehicle

i have spoke to people who's credit has dropped 30-40 points after paying off an auto loan.





AGREED

Yup I am planning to do just that.

What's the difference between 770 and 810? Nothing. There is no graduated system. You fall into one of four categories and that's it. Why? Because your credit rating is gonna change and they know that. Very seldom does it change significantly unless something significant happens. It's usually a few points +-. My original post said "Unless you are close to the line..." which means losing 40 points off of 800 means nothing, but losing 5 points off of 750 might cost you a tenth on the interest rate over five years. That's the key being in a solid position. 800 is a solid position. For all intents and purposes, 750 is a solid position as long as you keep it there or above.

And lastly, if you finance through a manufacturer, the DEALER has leeway on what interest rate you can get to a point. You could have a 720 score and get the same rate as a guy with 800 score if the dealer wants to give up a piece of the margin to make the deal, or if the 720 guy put down 25% and the 800 guy only put down 5%. My point is there are many ways to get screwed. There are also many ways to mitigate the damage. Having a high credit score, putting down 25% and using the interest rate as a bargaining chip are ways to keep more money in your pocket.
Good luck!

Most dealerships will actually get you a better deal through financing - sales folk have perks and incentives for each vehicle financed and dealerships as a whole do as well, I believe. Because of this, I've found the old belief of walking in and dropping a stack of cash and getting the best deal to no longer be true.

If it were me, I'd have the cash available to pay all/most of it, finance with the best terms you can (either at the dealership or at your local credit union), finance the vehicle and go and immediately pay it off.

In terms of your credit score, if you're worried about your score dropping due to paying it off, you can always pay it down to almost nil, get your financing all set for the truck, and then pay off the rest of your T4R. Loan officers look at credit score and your debt to income ratio - by leaving a nominal amount on the loan before buying your truck you lower your debt to income ratio and don't cause any hiccup with your credit score.

Ford is not Toyota and like most of the 'Big 3' they offer rate incentives almost all of the time. Most car dealers consider you golden if you're over 720 and when I buy anything that doesn't offer 0%, I get pre-approved through my bank (USAA) even though I'm sometimes giving up .5 or so because I'll gladly pay that .5 to know I get someone that's based in the US and speaks English if I have a problem. I understand what you're saying but he's buying a Ford that isn't on the exclusion list so 0% shouldn't be that hard to come by or require money down.

You are correct. I was just passing facts along about the scoring system and how it impacted me.
It is a system that makes no sense to anyone. The designers probably cant keep up.

Always get to 51% equity in the financed item as fast as possible. And a couple tips, never do a down payment, you never want to lower how much you pay monthly, but instead the shorten the length of time you pay it over. When you want to apply a down payment, wait 45-60 days and then pay it to the finance company or bank to lower the total payoff, if you have a trade, sell it private party, and again add it to pay off the total loan amount. And never, ever take loans for longer than 48-60 months, thats more psychological, shows loan officers you don't trust yourself with a higher payment. Just my 2 centeruski's.

[QUOTE=ddnww;2828791] Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.

TFS most certainly has a graduated system, the difference between a 689 and a 690 score is YUGE with TFS. Credit rating, you're 100% correct, but TFS has tiers of credit, and it is up to the bank(TFS) not the dealership what percentage you qualify for.

What you're describing is a down payment, just 45-60 days later, paying if up front lowers payments which makes shorter terms palatable. I don't understand why you wouldn't pay that chunk up front and lower the payments...

[QUOTE=Senorlechero;2837891][QUOTE=ddnww;2828791]
Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.



[QUOTE]The tundra does not have as strong of a resale value as the the Tacoma and 4runner do, it has way less tow capacity than the competitors. I have never agreed much with CR anyways.

[QUOTE=ddnww;2838206][QUOTE=Senorlechero;2837891][QUOTE=ddnww;2828791]
Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.



You're correct, that's because the Tacoma and 4runner are #1 & 2 in resale value, the Tundra is strong though, at least in socal.

The Tundras Tow capacity maxes at 10,200 lbs, from what Google says the F-150 maxes at 10,500 Ram 1500 at 10,700 and the Silverado 1500 at 9,400 so you are correct, I wouldn't call 500lbs way less.

I don't care if it's something else about the trucks, but the current F-150 are absolutely plagued with engine and trans issues.

Have you considered leasing a vehicle. That could be a better option for you instead of financing. It's also a form of financing, but different from a loan.

[QUOTE=Senorlechero;2838276][QUOTE=ddnww;2838206][QUOTE=Senorlechero;2837891] The tundra's max capacity tows 10,200 and the f150 tows 13,200. 3,000lbs is a pretty big difference. I wouldn't ever own a dodge product, and am not a fan of newer GM trucks, I have many die hard chevy fan friends who's transmissions have failed them with less than 50k. One of them twice, he sold it before the warranty ended.

I don't know where you are getting your info, but the f150 is definitely not plagued with problems. The early '11 and 12' ecoboost had some bugs they had to work out, but they were very few and far between. The thread really isn't about what truck I am getting, but I can assure you I am confident in my choice. Which is why dodge and chevy are not on the list.

I gave it some consideration, but I don't think its the right fit for me.

OK so I dug deeper that google searching 2017 F-150 Tow capacity https://www.google.com/search?q=2017...hrome&ie=UTF-8

and went to Fords webpage where they list 12,200 lbs as the max tow capacity of ANY F-150 and that is only on one configuration. But at this point it doesn't matter and you are correct that Ford lists a higher towing capacity than the Tundra

And I'm getting my info on Fords from the same source you're getting yours on GM, and people throughout the auto industry

I am basing my decision off the fact that Ford is the chosen work truck on most major work site, farm, ranch, the fact that the company I work for has a fleet of over 40
f150's ecoboost and 5.0 v8 that have done very well in the last 4 years as opposed to all the other brands we went through, my own personal experience, and my best friends recommendation. He owns a performance shop, has been building cars and engines for the past 30 years, is not biased, is also the chief engineer for the electric company in the the largest suburban city in the US, overseeing their entire truck fleet of who knows how many trucks. I asked him what truck he thinks is the most dependable truck. He said if you are buying a truck, I will do everything in my power to talk you into buying a Ford. I trust his word and expertise.

We all have our brand of choice, I happen to be one of the few people who aren't really loyal. I love ford trucks and muscle cars, Toyota tacomas and 4runners, and chevy classics.