topic Will car loan initial hit on report hurt or help score? in Auto Loans

Will car loan initial hit on report hurt or help score?

Ortz33__ — Mon, 11 Apr 2011 00:05:46 GMT

So I know after timely payments my score will be increased with a new auto loan, but will the initial hit on my reports drop my score a whole bunch? I am just curious. i know it will help in diversifying my report, but i think the total debt amount will hurt my score. I think I'd gain it back in 3-6 months. can anyone confirm?? keep in mind this is my first auto loan, no mortgage, but i do have a student loan.

Re: Will car loan initial hit on report hurt or help score?

Noctilum — Mon, 11 Apr 2011 01:59:13 GMT

Re: Will car loan initial hit on report hurt or help score?

Ortz33__ — Mon, 11 Apr 2011 02:37:25 GMT

nothing there! : )

Re: Will car loan initial hit on report hurt or help score?

Noctilum — Tue, 12 Apr 2011 01:48:59 GMT

Wow, don't know why my post disappeared!

Any ways, what I was saying is you will most likely face a 5-10 point hit on the initial inquery. The inquery itself can stay on your report for 2 years and if you stack inqueries it can be be just as hurtful as a low score or high debt.

Fico has no way at knowing how much money you make, just how much debt you have. Your debt to income ratio will only be factored into your score when the lender sees you have too much debt and declines your loan. That is when you take the score hit. Try and keep DTI under 36% or face higher interest rates or increased chance at getting declined.

Re: Will car loan initial hit on report hurt or help score?

Ortz33__ — Tue, 12 Apr 2011 14:27:59 GMT

thanks!

i actually meant when my complete auto loan hits my scores. i used my cap one blank check last week and i was wondering what the actual TRADELINE will do to my score? sorry for the confusion