The last time I had financed a car was 9 years ago and it is not showing on my Equifax, but only on TU and Experian reports. In between now and then, I had purchased cars 100% cash, used. I'm considering buying a home in a couple of years, and it is reinforcing my desire to have a newish car financed, so I can have a healthy mix of credit types on record as paid in full / current when that time comes. I have zero derogs and always on time for all lines of credit.
When I requested my TU and Equifax today, it was reflecting around 46% utilization of my available credit (split in 3 major credit cards). With recent payments I had made on my cards, I should be around 35% utilization and I imagine my score should be a touch higher.
Will it make much of a difference in the financing terms my lender will provide me if I were to have an average score of ~735 as opposed to say, a 760+ (as a result of lowering utilization to 15%) at the time of requesting a loan? I intend to apply for a 48 month auto loan and pay it off in 24 or less. I understand my score will drop after getting the loan-- once the auto is paid off, will the ending score and my financial reputation be higher/stronger than before?
