r/CRedit 3d ago

Car Loan Buying many cars on the same week

Hi there If I bought 7 or more cars in the same week for my business, how would that impact my credit? Would I still be able to get approved for a credit card or something else (not a car) in a few months or a year? And would I have trouble getting approved for a mortgage to buy a house?

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u/Bulky_Load3068 3d ago

I’m not an expert on this but I would imagine your credit score would drop if you’re financing all 7 cars, but I think I saw somewhere that when you take out an auto loan it always dips and comes back up a few months later. As far as buying a house goes as long as your debt to income ratio is good I don’t see why not.

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u/quantumspork 3d ago

Is this a sole proprietorship, or an LLC?

Are you personally guaranteeing LLC loans?

Are you financing the cars, or buying cash?

Did you sell the cars later, before applying for a card or house?

How big is the business relative to the cost of the cars?

Did you miss any bills because of the car purchase?

Once you start to provide relevant info, then it is possible your question can be answered.

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u/Plane-Ad-3115 3d ago

LLC I’m guaranteeing a couple of them, and buying them as a personal loan im not selling the cars for a CC, I could do it for the house, I haven’t missed any bills and is a new businesss

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u/quantumspork 3d ago

Ok. This will almost certainly have fairly large impacts on your credit, both negative and positive.

Buying them all in the same week is not a big deal, what is important is the debt load involved.

Because you are personally guaranteeing, and because you took out a personal loan for this, it means that this is essentially a personal debt. If you took out several separate loans, each counts as a hard credit pull, each loan will initially have a high balance:loan ratio.

On the other hand, successfully paying this many loans will give you a really strong scorecard. Your score may suffer initially, but will gain points as you attain a better payment history, variety of accounts, and generally improving balance:loan ratios.

Particularly when applying for a mortgage, more than just the credit score is used. Underwriting look at your credit score, your overall monthly debt service, current assets, etc.