topic Auto Loan lowered Credit Score in General Credit Topics

Auto Loan lowered Credit Score

Madmax26 — Thu, 10 Oct 2013 14:44:02 GMT

So, last month I bought a brand new 2014 Chevy Silverado and when I checked my scores at the begging of the month my TU socre went down by 33 points! Any idea as to why this could have happened? Suffice to say I was very shcoked.

Re: Auto Loan lowered Credit Score

Anonymous — Thu, 10 Oct 2013 16:57:58 GMT

Most of the time an addition of a new account is going to cause a score drop. The amount of the drop is going to differ for each individual depending on their own credit file. If you have never had an installment loan (none currently reported on your reports) then the addition of the installment loan can sometimes offset the new account drop and even slightly raise a score. But if there was a previously reported installment loan (open or closed) then this plus factor is not in play.

Your scores will recover as the account ages and you make timely payments. Most people report gaining all the lost points and starting to increase in about 6 months. Enjoy your new vehicle and celebrate it as a milestone in your credit journey. When I first got to these forums I couldn't have gotten a loan for a pack of gum.

Re: Auto Loan lowered Credit Score

Madmax26 — Fri, 11 Oct 2013 19:35:39 GMT

Neither could I when I first got here I had a score in the 550's. Thanks for the very thorough reply. Have a great weekend.

Re: Auto Loan lowered Credit Score

llecs — Fri, 11 Oct 2013 19:52:57 GMT

Are the before and after scores both from myFICO? Or are you comparing myFICO (or elsewhere) with whatever the lender provided?

Re: Auto Loan lowered Credit Score

Madmax26 — Fri, 11 Oct 2013 20:20:20 GMT

I'm going off pre and post auto loan CR report numbers from another site.