10-16-2013 09:20 PM
I'm currently paying down some debt that's at 0% interest, and once I have my debt paid off my plan is to buy a new or pre-owned truck, but I would like to do so without substantially lowering my credit score so that if I need to move in the next year or two my credit score won't be a hinderance.
First how will the amount of the car loan effect my credit score? Would the initial drop in my credit score vary greatly between a 10K and 40K loan? Would it be benifical to imdiately pay off a good portion of the loan to lower the debt to initial balance ratio, or would this not make a big difference in my score vs just making scheduled payments?
Here's what my credit reports should look like once my current debt is paid off and I'm ready to buy a new vehicle:
Inquiries: TU:3, EQ:1, EX:4
AAoA: EQ/EX:3yr9mo TU:3yr4mo
Util: 3.5% ($29,000 Total Available Credit)
PayPal Extras MC: (0/7500) 0% 3yr8mo
Discover More: (1000/7000) 13% 1yr3mo
Chase Amazon: (0/2000) 0% 1yr0mo
AMEX BCE: (0/7500) 0% 0yr11mo
Chase Freedom: (0/5000) 0% 0yr10mo
7 Student Loans: (0/14000, Closed, Paid As Agreed)
Aniticipated FICO Score 740-760
10-17-2013 12:12 AM
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