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I can forget about my plan to buy a car for another couple of years until I have a bigger credit limit? Is that correct?
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not exactly.... What is your credit limit on the new card? I would think there are some very interested lenders amongst car dealers!! I prefer to recommend credit unions for banking and loans. I keep a small limit card for online purchases, and high limit cards for usual purchases. They are looking at the ratio of your credit limit vs. outstanding credit. At $2,000 limit, you could have about $500 to invest in a car before they start hammering your rate. Tho I haven't ever had them balk at loans that were not related to my cards. (Things are different today).
But I will be the last person to recommend buying a car on credit, or even buying a car at all if you can avoid it. You can rent NEW cars on priceline for $15-$20 / day when you need one. (I drive a $35 vw Rabbit that gets 50mpg). I get my cars at the 'abandoned vehicle auctions', where they sell 600 / week in my area. I bought one new car 36 yrs ago and fought the financing issue, then the warranty issues, finally deciding to sell it after 10 yrs with only 32,000 miles on it, because I always preferred to drive my other stuff (antique trucks, econo cars, and on-road and 'dual sport' MC). In the meantime I stashed my car $$ into real estate and investments (Both of which are a bargain today). I bought my first house at age 19, and have had about 20 props since then, all but one did far better than my auto investments. If I was 25 again, I'd be investing in assets that will eventually REPLACE my job. Being strategic, you could be fully free from a job in 20 yrs, and getting the equivalent $$ of your job, while hanging out in Tahiti. There are a lot of bargains out there today, including cars, but... you can't live in your car, AND I never borrow money on depreciating assets.