Car finance and Credit Card

[KingHuang]

Hey AFF gang,

Got a question as haven't been in this scenario before. Recently had a secure car financed, and was wondering if this will impact the credit card borrowing power?

Or would this be considered as 2 different 'loan/credit' types, as I have read previously some credit cards had to be cancelled to be able to apply for home loan.

Does anyone know or have experience for this? As I don't want to jeopardise the ability to churn credit cards as a result of the finance for the loan.

I previously read credit card borrowing power is circa 33% of pre tax income.

Question would then be how much does a secure car loan attribute to that, e.g. 10% of pre tax income etc to then hit the 33% borrowing power.

p.s. some facts that might help:

secure car finance - $50k
CC limit - $6400
income - $83k

TIA!

 

[ZigZagWanderer]

My only experience was that I was asked, by the finance co, to reduce my available credit. Since I never used the total $70k odd credit, I didn't mind.

Car finance was $50k. All this 10 years ago. My income was probably reported as about $100k.

Never been asked to drop a card, however.

 

[KingHuang]

confirming not important was able to attain circa $50k loan and keep credit card with no issues at the salary posted