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Established Member
redhouse69
Posts: 18
Registered: ‎11-22-2009
0

Car Loan Home Loan and Credit Score Increase

Is there any set time intervals where you might see a boost in your credit score after a new car loan or home loan paid ontime every month?

 

6 months 

 

1 year

 

2 years

 

etc?

 

Thanks

 

 

Starting Score: TU~528 EQ~518 EX~530
Current Score: TU~697 EQ~615 EX~656
Goal Score: TU~700 EQ~700 EX~700
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: Car Loan Home Loan and Credit Score Increase

FICO really doesn't reward you for on-time payments. Absent all other factors like age, other accts, etc., you wouldn't see any score improvement by paying on time over a month, a year, 10 yrs, etc. However, as the account ages you could see some gradual imrpvements, a few here and there.

Established Member
redhouse69
Posts: 18
Registered: ‎11-22-2009
0

Re: Car Loan Home Loan and Credit Score Increase

Sure I understand it is assumed that payments will be made on time.

 

I'm coming up a year on on my car loan and noticed an increase at the 6 month point after taking a small hit when the loan was opened.  i.e hard pull and lower average age.

 

I'm now very close to securing a new home loan and anticipate something similar with the score being lower and then bouncing back and then eventually benefiting from a another line of credit...

 

Any input?  Thanks for your responses.

Starting Score: TU~528 EQ~518 EX~530
Current Score: TU~697 EQ~615 EX~656
Goal Score: TU~700 EQ~700 EX~700
Established Contributor
bettercreditguy1
Posts: 758
Registered: ‎02-11-2012
0

Re: Car Loan Home Loan and Credit Score Increase

The small uptick when it occurs between six and twelve months is usually the aging  of the new account inquiry/beginning reporting.  YMMV dependent on what else is in your file. If it is very thin, then you may see an additional increase.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Frequent Contributor
mtrsprt
Posts: 308
Registered: ‎07-27-2011
0

Re: Car Loan Home Loan and Credit Score Increase


llecs wrote:

FICO really doesn't reward you for on-time payments.


 

You should re-word that. The most important thing factoring your score is payment history.  On time payments being the target.....   More payments (On time), more time/age = Higher score.

 


Starting Score: 521 TU, 597 EQ, 574 EX on 6/20/2011
Current Score: 719 TU, 709 EQ, 711 EX on 6/07/2014
Goal Score: 720-740 Across the board


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Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Car Loan Home Loan and Credit Score Increase

It is worded right, but could be taken wrong.

 

You are awarded points for your AAoA.  But on time payment is expected.  It's only when payments are late or not made that will affect your score.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: Car Loan Home Loan and Credit Score Increase


mtrsprt wrote:

You should re-word that. The most important thing factoring your score is payment history.  On time payments being the target.....   More payments (On time), more time/age = Higher score.

 


 Ditto to Shogun. Paying on time won't increase your FICO. Added "OKs" in the payment history won't increase your FICO. However, conversely, paying late will drop your score as we all know. The OKs are ignored but not the lates per FICO. With everything being equal with no added TLs, dropped TLs, no inquiries, no changes in accounts, etc., you will see small and gradual improvements in score as those TLs age, but that's aside from the payment history and has to do with the length of history and any change in AAoA.

 

Now under a manual review, if you have decades of OKs and one 30 day you won't be viewed as risky as someone with only a year of history and just one late. FICO addeesses that in a sense with the scoring buckets. Someone with decades of perfect history will take a bigger beating in FICO than someone with a short history.


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