topic Re: Auto Loan / Credit Score Increase in General Credit Topics

Auto Loan / Credit Score Increase

JNQueen — Thu, 09 Jun 2022 23:42:15 GMT

Hello! I am in the process of buying a new car, which is in transit to the dealership. I am 20 points away from the next bracket in my credit score which is the difference of 4% APR over the life of the loan. I made a $3000 payment towards one of my credit cards in hopes of gaining at least 20 points. The statement closing date for this payment was June 7th, and the creditor confirmed that they report changes to the credit bureaus today, June 9th. When can I expect to see a change in my score? I'm cutting it really close with the dealership...

Re: Auto Loan / Credit Score Increase

SouthJamaica — Fri, 10 Jun 2022 16:07:12 GMT

@JNQueen wrote:
Hello! I am in the process of buying a new car, which is in transit to the dealership. I am 20 points away from the next bracket in my credit score which is the difference of 4% APR over the life of the loan. I made a $3000 payment towards one of my credit cards in hopes of gaining at least 20 points. The statement closing date for this payment was June 7th, and the creditor confirmed that they report changes to the credit bureaus today, June 9th. When can I expect to see a change in my score? I'm cutting it really close with the dealership...

Your score doesn't change, only your data changes. To find out what your current score is based on your current data you need to pull the report through a service that gets the FICO score, such as MyFICO or experian.com. Probably it will be in your reports today, but you could wait a day or two to be sure.

It's doubtful that a $3000 payment would get you 20 points, but I would need to know the limits and balances on that card and on your other cards to give you an opinion on what you might be able to expect.

Re: Auto Loan / Credit Score Increase

JNQueen — Fri, 10 Jun 2022 16:25:25 GMT

Thanks for your advice. The balance on the card was around $4800 and now it's around $1800. I did a credit simulator and it estimated a jump of 43 points. It's a simulator of course and not exact. Overall it's a 10% increase in available credit.

I would just like to see the increase to it. So far it hasn't according to the report changes. Can a score update over the weekend?

Re: Auto Loan / Credit Score Increase

SouthJamaica — Fri, 10 Jun 2022 16:46:42 GMT

@JNQueen wrote:
Thanks for your advice. The balance on the card was around $4800 and now it's around $1800. I did a credit simulator and it estimated a jump of 43 points. It's a simulator of course and not exact. Overall it's a 10% increase in available credit.

I would just like to see the increase to it. So far it hasn't according to the report changes. Can a score update over the weekend?

As mentioned the scores don't update, the data updates. But yes the data can update over the weekend and you can pull your score over the weekend.

Re: Auto Loan / Credit Score Increase

RSX — Fri, 10 Jun 2022 16:54:20 GMT

another way to lower the interest paid on a loan, is to make extra payments

you could have got the auto loan at the higher APR, and then dumped the $3k on the loan - thereby lowering the total amount of interest paid anyway

if you end up with the higher APR because of timing reasons, keep this in mind - make an extra $50-100 payment each month and it will all sort out when you pay it off months earlier

Re: Auto Loan / Credit Score Increase

JNQueen — Fri, 10 Jun 2022 16:58:49 GMT

When can I expect to see the score update then? I assumed that a score will update once data is received.

Re: Auto Loan / Credit Score Increase

JNQueen — Fri, 10 Jun 2022 16:59:23 GMT

Thanks for the advice

Re: Auto Loan / Credit Score Increase

GatorGuy — Fri, 10 Jun 2022 18:57:29 GMT

If you have any Chase cards and pay them in full, they will be reported to the credit bureaus immediately.

In case you aren't understanding, as soon as new data is reported, your score changes. So it is all about when the data is reported.

Credit simulators are pure hokum. There is no science behind it. You cannot rely on them. If you posted the full details of your report you would give much better advice about to get a twenty point increase.

Re: Auto Loan / Credit Score Increase

JNQueen — Fri, 10 Jun 2022 19:28:27 GMT

That's what I thought. Bank of America said that they report changes to bureaus on my account on the 9th of every month. I assumed that since the bureaus would receive the data, and my score would update. I've checked and the recent payment hasn't reflected on my score yet.

here's the rundown on my cards and open balances:

I have 8 accounts total with total credit of $35.300. I have $23,191.11 total balance so I'm using 65% of my available credit.

Before I made that large payment, I was using 79%. So it's improved by 14%. I'm hoping that gives me the hike in credit I need to get to the next bracket. Yeah, simulators can't be trusted but it was all I had before I found this forum.

Re: Auto Loan / Credit Score Increase

SouthJamaica — Fri, 10 Jun 2022 19:46:41 GMT

@JNQueen wrote:
That's what I thought. Bank of America said that they report changes to bureaus on my account on the 9th of every month. I assumed that since the bureaus would receive the data, and my score would update. I've checked and the recent payment hasn't reflected on my score yet.

here's the rundown on my cards and open balances:

I have 8 accounts total with total credit of $35.300. I have $23,191.11 total balance so I'm using 65% of my available credit.

Before I made that large payment, I was using 79%. So it's improved by 14%. I'm hoping that gives me the hike in credit I need to get to the next bracket. Yeah, simulators can't be trusted but it was all I had before I found this forum.

OK Thanks. Sorry to be the bearer of ill tidings, but I don't think that payment will get you many points. Nowhere near 20.

Re: Auto Loan / Credit Score Increase

JNQueen — Fri, 10 Jun 2022 20:02:35 GMT

Ok thanks for your advice. The only thing I can do is try to keep improving it and then refinance when I'm in the next bracket.

Re: Auto Loan / Credit Score Increase

SouthJamaica — Fri, 10 Jun 2022 20:06:06 GMT

@JNQueen wrote:
Ok thanks for your advice. The only thing I can do is try to keep improving it and then refinance when I'm in the next bracket.

Yep. And I would suggest you look at credit unions. They have the best rates, and they all seem to be desperately pushing auto loans.