Re: How Does This Effect My Credit Score?
11-08-2012 09:33 AM
Although it's difficult to accurately predict what will happen for each individual I would say that you are most likely going to see a raise in your credit score with the addition of an auto loan. I base my guess on the idea that you are adding a first installment loan to your credit profile and FICO likes the mix of credit. The addition should offset any reduction for a new line of credit or average age of accounts.
On the other hand, if this is not the first installment loan on your report or if it drops your average age of accounts below one of the unknown thresholds that affect scoring then you could see a minor dip in credit score initially and a recovery of those points and more in 6 - 12 months. In any event in the longer term it will do nothing but help assuming that the account is maintained in good standing.
Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL
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