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

First Auto Loan, Effect On Credit Score?



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 23K | AMEX BCE 20K | PayPal Extras MC 10K | Chase Freedom Visa Signature 5K | Chase Amazon 4K

EX FICO: 751 myFICO 4/14, 754 Amex 5/13
EQ FICO: 788 DCU 3/15, 754 myFICO 7/13
TU FICO: 794 Discover 3/15, 784 myFICO 1/15
Epic Contributor
Posts: 26,147
Registered: ‎10-23-2007

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 8: EX 694. TU 689. EQ 658. 05/26/2015

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