Auto Loan just started reporting :(

[Anonymous]

Hello Everyone

Bought my first car in the middle of March. My first payment wasnt due till 5/16 but I paid it last month which pushed back the payment again till 6/16 but I plan to pay it again this month and every month to always be ahead.

Well I just got a notification (only 1 so far from EX) that the auto loan started reporting. I don't have any installment loans on my credit report so I thought this could be a good thing. Just yesterday my EX finally got up to 670 (just started rebuilding Sept 2014) and today when the auto loan reported I lost 2 points and it's down to 668?

I'm just a little surprised with it. I know it's a new account and will affect my AAOA (I didn't take a hit for the inquiry but i did my own financing and they only pulled EQ) but all my accounts are still pretty new since I just started rebuilding and thought the auto loan would help my score. I know it's only 2 points but as I continue to pay on time will the auto loan help out my score and will it bounce back? I'm sure when it hits TU and EQ I will see a decrease as well but I hope it's not more then 2 points

My DTI before the auto loan was 4% and now with the auto loan it's 12% (is that a okay percentage for DTI?)

I'm still new and learning so thank you everyone in advance.

[CreditCuriosity]

Ya your DTI% is still really good.. CC utilization and DTI are two different things.  Ya my loan new lease just reported on Experian today, not sure what impact it has had on my FICO yet, just pulled my credit secure and it is showing.. Be interesting if I get any of my points back I lost ..  Only lost 7 points from paying off my off installment loan on Exp (still doesn't make alot of sense) and see if I get some of those back.. Moreso I want to see it report on Equifax where I lost 36 points! for paying off my last installment loan I REALLY need those back and want to see it report there to see what happens.. This is a huge mystery to me how I can take such a big hit on paying something off.  I know account mixture, but still!

[Anonymous]

Thank you!! A auto loan doesn't factor into your CC utilization does it? Just your DTI? My CC utilization is about 8-9% (that's just my credit cards, I only have 1 card reporting a balance) and then my DTI with the auto loan was 12%.

That's crazy that you lost points you would think paying a loan off would only boost your score. It's crazy how Fico works. I'm sure no matter what you will get those points back. It's just crazy because here I am losing points to have a auto loan and you are losing points for paying off and closing your auto loan so how does anyone win lol

[CreditCuriosity]

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@Anonymous wrote:
Thank you!! A auto loan doesn't factor into your CC utilization does it? Just your DTI? My CC utilization is about 8-9% (that's just my credit cards, I only have 1 card reporting a balance) and then my DTI with the auto loan was 12%.

That's crazy that you lost points you would think paying a loan off would only boost your score. It's crazy how Fico works. I'm sure no matter what you will get those points back. It's just crazy because here I am losing points to have a auto loan and you are losing points for paying off and closing your auto loan so how does anyone win lol

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No an auto loan has no factor on your CC utilization just your overal DTI and yours is still really good.

Ya Fico Scores are a black box, very odd and you can only do so much to maximze them, other things are outta your control.. Ya I will get the points back, it is whether it is in a week or several months times...

[SamsungHDTV]

You'll be just fine. I know it sucks to lose any points even 2, but its not worth stressing 2 points. I get the vibe that you're on your credit game and you're on your way to a excellent credit score.

My scores flucuate depending on how the wind blows (actually probably what my utilization is reporting). But I don't pay any attention to my utilization unless I have a planned credit application coming up.

Perhaps the auto loan didn't affect you and it was your utilization changing a tad. Who knows.

[Anonymous]

Thank Samsung. I actually just paid off all of my cards (besides one) so in the last week when everything started reporting my score has gone us about 10-15 points. I didn't have high balances just a lot of cards had small balances that was reported. So I was happy to see my score go up. My EX finally got to 670 and then took the 2 point hit so I think that's why it bothered me as much as it did and was scared it could keep going down.

But I'm happy to update that my EQ was updated today with the new auto loan and that one went UP 1 point. Not just waiting on TU. Credit is def a weird game. Thanks so much for your advice!!

[leoment]

I wouldn't stress it too much, CreditQueen! I don't have any installment loans, and that's listed as a negative on my reports (not having a mix of credit), so I'm sure by you having the loan and paying it on time for a few months will boost your score.
Enjoy the new car!

[David_]

DTI is only considered during the loan process (mortgage, auto, peronal, etc). It does not affect your credit score. Your scrore drop may have been due to your average age of accounts taking a hit with the new tradline reporting.

[Anonymous]

I find myself in a similar situation. I recently did a refi with NFCU as well as a new navcheck account and a new Sallie Mae cc in the month of March. I did not see any score changes when the inquiries appeared, which I was expecting. However, when those three new tradelines stared reporting, I received alerts stating my EQ dropped 11pts, EX 6 pts dropped and TU, 4 pts dropped.  My profile is very similar to yours. I'm assuming my AAOA lowered significantly and may be the reason. I while be watching closely, as the new loan reported, but the old loan hasn't reported as paid off.  

[Anonymous]

Thanks everyone. I know that DTI doesn't affect your score but because of getting my first auto loan I didn't know that it going up to 12% was a good thing or bad thing for future lending purposes. I wasn't really worried about DTI before my auto loan bc I knew it didn't have a affect on my score and with my credit cards and no installment loans at all I didn't think it would be a problem anyway! But thank you everyone for your advice.

Congrats on the Refi and the 2 other accounts iblitz!! For some reason my TU was 677 but had a notification that it went down to 670 (for no reason given just said score change) then got a notification that the auto loan stated reporting which gave me another 3 points. I have no clue why my TU went down 7 points like I said it didn't give me any reason just a alert that said your score has changed but then when I got the auto loan alert it went up 3 points. Im just not going to pay attention to closely to my score. I'm going to continue to pay everything on time and know the high score will come with that.

It's def not the end of the world lol EX -2 pts EQ +1 pt and TU +3 pts and I'm sure with great pay history it will do nothing but help my score until it's closed and paid off thank you everyone again