New auto loan Hard fico hit.

[Anonymous]

I recently got a auto loan for 13,000 my equafax fico was 670 it dipped to 612 just go tthe loan last month. how many months does it take to bounce back , i want to get a home in thenext 12 to 18 months. will it be back up by then? no collection, new tradelines,and a few credti cards close to 80% util. not sure what i should do..just wait?

[EW800]

---

@Anonymous wrote:

I recently got a auto loan for 13,000 my equafax fico was 670 it dipped to 612 just go tthe loan last month. how many months does it take to bounce back , i want to get a home in thenext 12 to 18 months. will it be back up by then? no collection, new tradelines,and a few credti cards close to 80% util. not sure what i should do..just wait?

---

I do not classify myself as an expert, but I would say that having "a few credit cards close to 80% util" is really doing the number on your scores.  Do you have the means to get that down, at least below 50%, but more ideally below 30% and then 10%?  

I could be wrong, but unless your debt to income is looking real good, I am not sure that taking out the $13,000 auto loan was the best thing to do if you are planning on buying a home in the next 12 months.  Debt to Income, and overall debt in general play very heavily when it comes to going after a home, so you want to have those ducts in line, big time.  

[Anonymous]

Thanks for the response. They will below 10% by then. Just wondering how long the new installment loan be positive and not negative to my fico

[EW800]

I think every profile is different, however from my experience I believe I have seen that just a couple or a few months of positive history can have a positive impact on scores.  Thinking back, in my case I believe it was most always six months of good behavior.  YMMV obviously.

[Anonymous]

Don't they say not to get a auto loan if you plan on getting new house in the near future?

[cashnocredit]

Just get your util down. That's what's killing you. Getting util below 5% but not 0 will improve your scores the most and you should be well above 670.

[RobertEG]

Two things impacted your score.

The inquiry made to approve the loan, and the reduction in AAoA.

If you also had changes in other areas, such as % util, they will also be factored in.

The new inq will no longer count in scoring after one year, and your AAoA will recover slightly as it ages.

After a year, a lot of the scoring impact should be gone.

New account inpact is minimal when compared to % util, so if you get that down, your score will almost assuredly be higher than prior to your new loan.