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HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009
Re: Paid off car & score went down - Need to buy new car

Actually your scores probably went down due to the increased credit utilization and not the payoff of the auto loan. If your utilization with your previous scores was low (under 20%) then you have your answer. Also if the Best Buy credit card is brand new this would have an effect with a new account and inquiry. New account dings seem to take at least a few months to work off. Utilization can be handled by paying down the credit cards and waiting for the next statement.

 

As to getting another auto loan - your credit profile and scores should not be a hindrance. From the vehicle and price range you are obviously looking at used vehicle. Either go the dealership and let them find financing or try and set it up yourself before hand and let the dealer compete for the financing. As far as securing your own financing if you go that route then talk to your bank or CU that handles your primary accounts. Your auto loan FICO scores will be better than what you are seeing if they used auto enhanced, due to the paid off auto loan. So it is going to come down to income and debt. In the banks eyes - can you afford a car note alongside your mortgage and credit card payments.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL


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