How much of a hit will a auto loan take on your FICO?

[Anonymous]

This may sound dumb, but I was wondering how much of a hit in your FICO you would take when getting a auto loan. I mean I know it will bounce back, back it just seems like all this hard work of pulling up my FICO, I dont want to see them drop. How much of of your FICO score is from installment UTIL if any at all?

[Anonymous]

I'm going to guess that possible answers to this are all over the place, depending on what's on your report already.

I can tell you that DH's score took a two point hit with opening an auto loan, going from 762 to 760.

The inquiry didn't affect his score at all, but he already had six inquiries - so that (very minor) damage had already been done.

He had paid off his only installment (2nd mortgage) two months earlier.  There was no score hit when he closed that only installment.

So the car loan brought an installment back into his mix.  It's still reporting at 100% of the balance, even though we've made payments.

Hope that's somewhat helpful.  YMMV - or probably more accurately - YMWV.

The score simulator, by the way, estimated a potentially much larger hit - so we were a little worried. 

Good luck figuring out what will work best for you!

[Anonymous]

Ok thanks for the input. Does installent loans effect your AAoA or only revolving accounts? This is my biggest fear in which would drop my score. I just want to stay in the 700s, as long as I am in the range ill be fine with it.

[laz98]

everything on your reports affects your AAoA

[marty56]

Don't be FICO score poor where your are afraid to use credit for fear your score will drop.  Enjoy the new car and your scores will rebound if they drop.

[Anonymous]

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marty56 wrote: Don't be FICO score poor where your are afraid to use credit for fear your score will drop.  Enjoy the new car and your scores will rebound if they drop.

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Well said.

[Anonymous]

Good point marty56, your right. Thanks.

[Uborrow-Upay]

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@marty56 wrote:
Don't be FICO score poor where your are afraid to use credit for fear your score will drop.  Enjoy the new car and your scores will rebound if they drop.

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Marty56, you don't say a heck of a lot when you post, but I guess you don't have to...everything you do say is right on target!

[marty56]

LOL now if I could only get poeple to listen to me at work.

Honestly I was acting FICO score poor when I wanted a new car last year and one look at the Lancer at the dealer made me forget that there was even a FICO score.  Also I dont know what I was more afraid of - my FICO score going down or being rejected on the car.  IMHO it was the latter.