Score Drop

[Anonymous]

My SUV is giving me the blues big time,  and I'm trying to get a mortgage loan in the next few months, but I need a new vehicle now; according to the stimulator if I were to open a new vehicle account my score will dip.

How can I prevent this?? I pray my car makes it for the next 3 mos, enough time to seek a mortgage loan, but I don't think it will.

Any ideas/suggestions??

[Anonymous]

Have you thought about renting a car?  You wouldn't be paying for a car unless you need it and renting a car wouldn't increase your debt.

[Anonymous]

Renting a car would be throwing away money IMO; I just can't do that.

Any more suggestions?? If I were to an auto loan now, how soon can my score go back up??

[crazysxycool]

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@Anonymous wrote:

Renting a car would be throwing away money IMO; I just can't do that.

Any more suggestions?? If I were to an auto loan now, how soon can my score go back up??

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Depending on what the issue(s) are with your vehicle, it might be best to spend the money to repair it until you get your mortgage.  If you know it's not going to make it then you really don't have many options.  Usually your score won't drop tremendously if you're home/auto shopping in the same time frame, which I think is 30 days but someone might have to correct me if I'm wrong about this.  Just my two cents.

[Anonymous]

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@Anonymous wrote:

Renting a car would be throwing away money IMO; I just can't do that.

Any more suggestions?? If I were to an auto loan now, how soon can my score go back up??

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If you're planning to app for a mortgage within the next 6 to 12 months, I'd advise against getting a new auto loan. It's not just about the potential hit to your FICO score (which could go up or down, depending on your overall credit profile - You can use the score simulator to give you an idea as to how much [better or worse] your actual score might be impacted by adding a new auto loan, though.), but underwriting may not look fondly on your shiny new loan that doesn't have a lot of history, and increases your DTI.

Instead, I'd do the math on what it would cost, and how much value & longevity I could get out of repairing the current car, to keep it running for awhile. It's likely to be cheaper than buying a new car, or 'new to you' used car that you'd have to finance.

[Anonymous]

Thanks all!!!