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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?
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.
@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.
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
It will do wounders in 3-6 months
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