Reply
Valued Member
Posts: 34
Registered: ‎04-21-2013
0

First Auto Loan, Effect On Credit Score?

Hello,

 

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:

 

Age: 24
Income: 45K
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

Discover IT 19K | AMEX BCE 13.9K | PayPal Extras MC 10K | Chase Freedom Visa Signature 5K | Chase Amazon 4K

EX FICO: 751 myFICO 4/14, 754 Amex 5/13
EQ FICO: 770 DCU 12/14, 754 myFICO 7/13
TU FICO: 784 myFICO 1/15, 788 Discover 8/14
Epic Contributor
Posts: 23,347
Registered: ‎10-23-2007
0

Re: First Auto Loan, Effect On Credit Score?

Your auto enhanced fico will go up with auto loan.... Keep that in mind also if you have never had one that score might be little lower than your regular fico.

Either way I wouldn't be to concerned about drastic drops by adding an auto loan.
Fico Scores: EQ- 668 DCU., TU 704 Best Buy, EX 700 Chase (2/5/15)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
67 Cards and Counting :smileytongue:
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.