markcolo wrote:I currently lease a vehicle. I am thinking about buying a hybrid car for the tax credits, so I was checking my FICOs. I noticed that the amount of debt shown on my current lease equals the total payments for that lease. So would an auto loan show as a higher amount of debt, and negatively affect my FICOs?
markcolo wrote:Thanks! Hybrid here I come!
Don't seek any new loans or credit until you close!
I'm in a similar situation, but I am dealing with a new home mortgage as well. I've got a dirt start coming up soon, and I just signed the paperwork and had my credit pulled for the Mortgage. I'll be closing on the home in 6 months, and the Lender said they assume you will be continuing payments on another car after the lease is up. I'm comfortable with my 693 right now, but I want to make sure a new loan (60 month/ similar payment to lease around $430) won't adversely affect my credit between now and it's time to close on the house! Seems DTI should be okay due to them taking lease into account as continuing ad infinitum. So I should just expect a modest hit for the inquiry? My score is low due to revolving lines being too high of %. I assume installment account shouldn't hurt me too badly. Also if I shop for a loan, will I take a bigger hit. The mortage+auto inquiry at the same time could affect the score?