Reply
krh
New Member
Posts: 1
Registered: ‎03-28-2013
0

Score change time frame?

Hi,

 

My daughter has a loan with Honda Finance which I am paying off/buying the car from her, and she's buying a Hyundai. Will her score improve when the Honda is paid off so that she'll get a better interest rate from the Hyundai dealer, or won't it matter? She has qualified to buy the car with the Honda still on her credit, but I'm wondering if it's advantageous for her to wait till the Honda is paid off. I have no idea what her FICO is, but she was told by two different dealers that her 'score' was 690+ and 720. No idea who or what score they are using.

 

 

Thank you!

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Score change time frame?


krh wrote:

Hi,

 

My daughter has a loan with Honda Finance which I am paying off/buying the car from her, and she's buying a Hyundai. Will her score improve when the Honda is paid off so that she'll get a better interest rate from the Hyundai dealer, or won't it matter? She has qualified to buy the car with the Honda still on her credit, but I'm wondering if it's advantageous for her to wait till the Honda is paid off. I have no idea what her FICO is, but she was told by two different dealers that her 'score' was 690+ and 720. No idea who or what score they are using.

 

 

Thank you!


Welcome!

 

It proably won't matter to her FICO when the note is paid off. Installment utilization is a tiny part of FICO scoring. Likewise, you won't get dinged heavily for 100% utilization when adding a new car or plagued for years after adding a 6-figure mortgage. It really is insignificant. Now there might be a chance for a small single-digit increase as another account reaches $0. Any gain depends on your daughter's credit. Also once the loan is paid off it might take a month or two before it gets updated, and waiting may or may not be an option.

 

If there was a 690ish and a 720, then one of two things happened. First, she could be looking at two different credit reporting agencies (e.g. EQ vs. TU, TU vs. EX, etc.). That can produce different scores often by a large margin. Or second if it is the same CRA, then a classic FICO could be compared to an auto-enhanced FICO and that can cause a difference.

 

 

Frequent Contributor
Posts: 348
Registered: ‎02-27-2013
0

Re: Score change time frame?

It probably won't show as paid off unless you pay then wait until it shows up sometime my car loan only updates every 90 days its annoying.
Cards: CSP $5k, Capital One Cash Rewards VS $3100, Discover it $3k Capital One MasterCard $600, Orchard Bank $3k, Barclays Rewards MC $1250 Gapcard $900, BR $300, Neiman Marcus $1k, Macys $1200 Walmart $500
In the garden until I can get a BCP

Starting Score: 534
Current Score: 682 EQ SW 660 TU 636 EX 3/26/13
Goal Score: 720


Take the myFICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.