how long after new credit does your score recover?

[Anonymous]

Hi all,

DH and I just qualified for a nice car loan from a credit union (THANK YOU for all your help - couldn't have done it 2 months ago!!) and I've been adding a few tradelines as my credit gets better. At first that raised my scores, but now there's lots of new credit. The car loan will really hurt, but I won't need any credit for a bit after this. I am hoping to refinance my mortgage as soon as it makes sense. The loan officer said it had to be in the 700s for her to touch it,which will take me some time... might not be able to get it that high for a long while, but I hope not.

How many months of clean payments does it take till the loan does more good for your credit than bad?

Also, does it affect your Fico scores if you pay more than the regular payment each month?

Thanks!

[Anonymous]

You will probably see a little boost to your score after making payments on your car for a few months....

Also if you have recently applied for a lot of new credit then in a year when the inquires drop and the new accounts have thier first birthday you should see another boost.

Time will definitely be your best friend in this scenario. I would wait at least a year before looking at refinancing the house. Since this isn't something you want to do often you will want to wait until you have your best score and then do it right the first time.

A 700 would get you a good rate ... but a 760 would get you an even better rate!

Just keep your utl low and always pay on time

[Anonymous]

I believe the new wears off after a year, it may be 6 months.

If you'd like I can move this post over to the "understanding FICO scoring" thread to get more responses.

[Anonymous]

Thanks Sidewinder. That would be great... never quite sure where to post things when they overlap categories!