Understanding FICO® Scoring

[let]

I finally, got my TU score into the 600's  611 to be exact... I am needing a new car will getting an auto loan hurt my scores?

I have 1 cc with my cu, $1000 limit balance is $130, crown jewelers $2500 limit, and hsbc master card $300 limit no balance on cj or master card.

[moondog7324]

It may hurt in the short term- but you will show a better mix of credit- that will offset any decrease for age- expect a small jump up when that auto loan reaches 6 months. Don't make decisions based on FICO - unless the score is needed for a specific goal-manage your debt, not your score!

If you need a car- and can afford it, get it. Don't get it as a means of improvng your score- The exception to managing your FICO is if you are going for a mortgage in the near future. Then it is in your best interest to twek scores.

[let]

We have one car under my DH name which I use we both commute to our job, I drive 80 miles round trip 5 days a week and he literally works 7 days a week.Commuting as well.. the little truck that he is driving is pushing 200,000 miles and its not been running well, so a new or  at least a new to us car is really needed ; we just can not be a one car family.  our goal is to get into a house, but we need to have good vehicles to get us back and forth to work.  My TU score finally hit 600 (611) today, so I am just very paranoid about getting any dings.

[gbreadman]

I got a $13,000 auto loan in January '07 (a little over two years ago).  It dropped FICO by 13 points (a thousand dollars per point?)

I had saved up for the car,  but not enough to pay it outright and keep a financial "cushion" at the same time...so it was paid off by that December (paying interest is also a bit of a pet peeve of  mine).  Once it was paid off the FICO went up about 20 points  (I didn't have a recent installment loan on the CR, so adding a different type of loan account other than revolving cc's must've looked good to them).

Dan