Which type of debt is better to carry going into a student-loan application? Lower Personal or Higher Car Loan?



I recently moved overseas, & need to buy a car. 


Originally, I had planned to buy a used car to keep the cost low, but USAA auto-loans aren't available overseas, they are only available for new cars. Knowing that I will be applying for student loans for graduate school in the next year (probably at least $30k), I'm trying to decide which loan to take to buy a car in the interim, Here are two options:


1.) Buy a used car with a persoanl loan - approx. $3.5k at 8-9%APR

2.) Buy a new car with an automobile loan - approx $16k - $18k over longer term - at less than 3%APR


Which loan would be better to take going into the student loan application?







Hello jackandthetrees. That's a great question. Regrettably, USAA employees are not credit advisors, so we would not be able to provide guidance on your credit history. However, we do recommend that you contact our Member Advice and Solutions team 1-800-531-8722 ext 23914 or call collect at 1-210-498-2722. Thank you. - Ben

Great thanks so much Ben, I'll give them a ring.