A friend gave me a hitch for my jeep. Problem is when I put the 4 bolts in, the exit side holes are about 3/8" too low. I am looking for a steel cutting bit for my hand drill or drill press that can cut a slot the 3/8" I need.

Unless you have a milling machine, you are better off drilling a second hole and then cutting the channel with a dremmel. You will have a slot that my be longer then you need, but a drill bit is likely to wander into the original hole otherwise.

The other option is ovaling the hole with a carbide burr or a die grinder.

Zach

Why not just mark the hole location on the hitch, remove it and drill. Your description of "hand drill" sounds like a brace bit.

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