Re: looking to finance a vehicle.[ Edited ]
01-27-2013 10:52 AM - edited 01-27-2013 10:54 AM
I agree with you,However im looking to buy a home in a couple of years and i was guessing that paying this auto loan will look very good to the home lenders. Correct me if im wrong im new to all this and thank you for the advice
It'll help from a mix of credit perspective if you don't have much in the way of installment history. Nobody (well hardly any) uses a Mortgage-enhanced score for mortgage loans, and as such it's no different than what it would count as in the generic FICO model.
If you don't have an auto loan and need a car, then I certainly suggest financing a car; however, I wouldn't buy a car just for FICO purposes. StartingOver is definitely correct if the car is not paid off (or mostly at least) by that point, it will be factored into your DTI calculation and that's a straight negative from a mortgage perspective. If it's paid, I'm not certain as to whether it would help underwriting at all or not... if it is factored at all it's probably so far down the list of importance to be near irrelevant when it comes to underwriting a mortgage.
Current Score: EQ 04 683, EQ 8 690, TU 710, EX 715 (01/01/15)
Goal Score: 700 on EQ 04 (01/01/16)
Take the myFICO Fitness Challenge