auto purchase....

Anonymous — Fri, 23 Oct 2009 16:23:07 GMT

I started a thread that had this question on it, but that thread doesnt seem to be getting any attention compared to a single question I asked.

we have plans down the road to buy a new home...right now our scores along with some other issues wont get a mortgage. my wife and I are both needing new cars, but if the impact is longer term than I think they might be, then we will wait.

we are fixing issues that are impacting our credit scores, but my question is if we buy new cars this will lower our scores for a while correct? how long will this impact our scores? we are in no hurry to make this home purchase, and are prepared to put it off a year. will we rebound from auto purchases in that time period?

Re: auto purchase....

RobertEG — Sat, 24 Oct 2009 07:08:37 GMT

Your new car purchase will involve application for new credit, and thus a hard inq. which will be scored by FICO for one year. It may ding your score for 5-10 pts, but no more than that, and will be gone in one year. For auto loans, all inquiries made within a 14-day window only count as one, so get your shopping ducks in a row before you go out and apply for your auto loan

A new auto loan will also add a TL that will lower your avg. age of accounts. Depending on you current avg. age of accounts, this may be minimal.

It will also add an instalment loan to your credit mix. If you dont have any installment loans now, this may have a slight benefit.

The % util on installment loans is not big factor in FICO.

I would guestimate a drop of around 10 pts total. But that varies, depending upon other factors in your current CR.

topic auto purchase.... in General Credit Topics

auto purchase....

Re: auto purchase....