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Could a car loan help my FICO Score?

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cc94
New Member

Could a car loan help my FICO Score?

Hi Everyone,

 

I am working on building up my FICO Score and want to know if obtaining a car loan will help my situation. I currently do not have any loans, car or mortgages. My current credit score is only 658, due to the fact that over the past 2-1/2 years I have filed a chapter -13, had a judgemnet against me, and a foreclosure.

 

(Three very hard hits, but I have been seing some progress in my efforts to improve my score.) 

 

I have one credit card, pay on time since I've had it. And student loans, pay on time.

 

So my delima is this:     My husband and I plan on getting approved for a home mortgage loan again by the end of this year, 2012, which will be over the 3-year waiting period. However, I know that my FICO Score is important for this process. I don't want to do anything to hurt my score, of course, however at the same time I need a new car. Will a new care loan help or hurt my FICO score?


Starting Score: 658
Current Score: 658
Goal Score: 700


Take the FICO Fitness Challenge
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Could a car loan help my FICO Score?

I'm not an expert but I think it will lower your score for a bit for the new line of credit on your report.

Message 2 of 6
Anonymous
Not applicable

Re: Could a car loan help my FICO Score?


@cc94 wrote:

 

My current credit score is only 658, due to the fact that over the past 2-1/2 years I have filed a chapter -13, had a judgemnet against me, and a foreclosure.

 



A bankruptcy, judgment and a foreclosure and your FICO® score is 658 -- that's amazing! 

 

The only good things posting to your credit reports is ONE credit and some student loans that are paid on time?  I am gobsmacked amazed that your FICO® is at 658.  You are blessed! 

 

And, I agree with the previous poster that your FICO® may take a bit of a hit with the new tradeline showing (for a car loan) but, according to what I've studied on here, that generally bounces back in about 6 months time. 

 

Message 3 of 6
cc94
New Member

Re: Could a car loan help my FICO Score?

Thanks for the compliment. That gives me that extra boost of confidence that I'm doing something right and that I can do even better. I have really been disappointed in my score lately. However, at the same time I am aware that it takes longer to fix-it than to break-it.

 

Your advice is appreciated.

 

 

Mrs. CAC


Starting Score: 658
Current Score: 658
Goal Score: 700


Take the FICO Fitness Challenge
Message 4 of 6
Anonymous
Not applicable

Re: Could a car loan help my FICO Score?

It will do wounders in 3-6 months Smiley Happy

 

Message 5 of 6
Fresh101
Regular Contributor

Re: Could a car loan help my FICO Score?

My car loan is the one that is moving my credit score up, but it took me over a year for the car loan acct to start working for me, making no late payments from day one, and my score have increased approx. 100+ points in the last month after 1.6 years of the loan been active. I don't have any CC and I know for a fact that the car loan will help you out but not right away as you added debt it will decrease a little, and when time start passing by, the acct becomes older/longer acct open with great payment history and score will start going up. GD Luck

Starting: 547 +Score EX, 541 MyFico EQ,562 MyFico TU (Dec 2nd)

Current: 736 FCR "EX" (Nov. 5th), 668 MyFico "EQ" (Nov. 5th), 748 MyFico "TU" (Nov. 5th)

CC: BB&T $2,500 CL 3/2013, BarclayCard $3,000 CL 4/2013, WellsFargo $300 CL 7/2012 & Cap1 $451 CL 5/2012

Goal Score: 800's Rank
Message 6 of 6
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