Car Financing and New Credit Cards
 

My MBNA Mastercard is expiring and I want to switch over to the new Tangerine Mastercard.

My fiancee got into an accident yesterday with my car and I may need to finance a new car.

We also just bought a house in January.

This is the first time I am buying a new car, so my question is would getting a new credit card ding my credit enough, with my mortgage, that I would not qualify for financing on a new car?

Without knowing more about your credit history (and length), no one can answer your question. Generally, you shouldn't have a problem.

If your MBNA does not have an annual fee, why not just finance the car first. And hold off the new credit card for a few months first if you're worried? Or have your fiancee sign up for Tangerine, and give you a supplementary card.

I dont know how it works, but you should get the car first.

not being approved for a mastercard is better than not being approved for the car.

Generally the qualifications for a MasterCard:
1) Do you have a pulse?
2) Are you not bankrupt?
If yes to both - approved.

For a car:
1) Pulse
2) Not bankrupt
3) Job
If yes to three - approved.

Given that you have a mortgage, if you don't have other debt and don't have shitty credit from not paying bills, etc you have basically no danger of not being approved for a MasterCard. The car is simply math - they take your income, add your debt (mortgage + car requested) and check the percentage. You may or may not get approved for the car you want, but given how conservative the mortgage rules are, there is basically again 0 chance you won't get approved for a cheap new car at a few hundred bucks a month.

Mark

i dont think getting approved is his issue. a lower credit score may impact the financing rate on the car. applying for new credit can have a negative effect on your credit rating, i have no idea how it works though.

if you really want to play it safe i would just renew the mbna, get the car, then get the tangerine and cancel mbna if you want at that point. i dont think mbna will do a credit check to renew your card

Doesn't all credit card work the same way. When it expired they automatically sent you a new card. Basically once you get approved you will stay their customer till you do somethhing about it? I've never had to physically do anything to renew cards

In fact I have a mbna card and have already been renew once without action on my part

First of all, credit card doesn't really expired. The expiration date of the card would be expired. If the card's expiration date expired, they will mail you a new one.

The only way to stop using a credit card is to stop/cancel it. Which will hurt your credit for a couple of months.

They have been rumors saying get AMex, VISA, Master: 3 different companies, thus it will help you build up your credit better.

PS I just got the tangerine card, is also a MBNA user, but I doubt i'll be using it :D

They pull up your credit report (quarterly) so they wont essentially see you currently have a home.

I will explain in depth later afternoon (busy in the office today)

What is this hype around tangerine MasterCard?

Nothing much really:
https://www.tangerine.ca/en/spending...ard/index.html

2% cash back on most things, 1% on everything else.
1.5% Foreign Conversion Fee.

When evaluating your loan status, banks will based their decision on your credit report, primary your debt to income ratio, to determine your credit risk. Credit cards (unsecured) carry a higher risk than loans and line of credit because of their ridiculous APR, usually ~20% when compared to ~3%. Mortgages are very low risk because it's a secured loan. If you don't pay the bank, they can just take your house.

By the way, your credit report still gets a hit from an "expired" credit card. The only way to remove it from your report is to cancel the card completely.

Sounds like pretty much what mbna is offering?

please don't finance your car for 72/84 months!! just don't!

Tangerine you can select 3 categories to receive 2% cashback, like food, groceries, gas, home repair, recurring bill payments, entertainment etc. MBNA smartcash is only 2% in gas and groceries, 1% everything else.

So you get 2% in more stuff, as well as flexibility (ie you plan on making a big purchase on something in home repair next month, so you can switch over and switch back the next month after that to your usual categories)
also currently getting 4% for 3 months which isnt bad

Super stealthy and discreet spam... not.

Mark