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Question on Autoloan

Member

Question on Autoloan

I already did some research in this forum about how autoloan (around 20k) impact the credit score. Here is my understanding: An autoloan will drop your score for about 2-5 points (Inquiry) and impact you for a whole year. Here is my question: How much credit increase can I get if I start paying off the autoloan every month? If I pay off over a short amount of time, will my score increase quicker? thanks,
5 REPLIES
Moderator Emeritus

Re: Question on Autoloan

An auto loan will only help you over the long term since it adds to your mix of credit.
Frequent Contributor

Re: Question on Autoloan



Tuscani wrote:
An auto loan will only help you over the long term since it adds to your mix of credit.



I learned that mistake by putting my car on my credit card.
 
stupidest thing EVER!
Time is credit's best friend...it can heal any wound.
Moderator Emeritus

Re: Question on Autoloan

Yea, very bad idea!
Moderator Emerita

Re: Question on Autoloan


TheCynicalOne wrote:

Tuscani wrote:
An auto loan will only help you over the long term since it adds to your mix of credit.

I learned that mistake by putting my car on my credit card.
stupidest thing EVER!

Cynical, I've seen you post about this elsewhere. Have you ever explored the idea of getting a personal loan from a credit union to transfer this from your CC? That would help your util, and also get you an installment loan history. You would want to be sure that the lender would not code it as a personal finance loan, as they can hurt you. You might have already paid this off or done something else with it, so I'm sorry if you've mentioned this elsewhere.

BTW, did I read another post by you that you're only 19?
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Moderator Emeritus

Re: Question on Autoloan

I used a 2.99% (lifetime of the loan) balance transfer check that posted to my Chase Visa to pay for my car, back in November,2005.  The amount of that check was about $23,500.  My 3 FICOs dropped between 12-15 points because of this.transaction.  However, by the beginning of this year, all 3 scores were back in the 800s again.  Right now, I have about an $8900 balance left.  My FICOs are EQ-804/TU-806/EX-839.  I did save a great deal of money using my 2.99% balance transfer check, because auto loan rates were much higher at that time.  This was one of those situations where you hurt your FICO scores, but you save yourself a lot of money.  I still don't have any regrets about putting my car on a credit card. 
EQ 814 / TU 815 / EX 842