topic Re: Auto Loan in Rebuilding Your Credit

Auto Loan

Anonymous — Tue, 26 Mar 2013 15:27:52 GMT

How will an approved auto loan hurt my credit file?

Re: Auto Loan

DaBears — Tue, 26 Mar 2013 15:31:06 GMT

@Boqorka wrote:
How will an approved auto loan hurt my credit file?

It wouldn't.

Re: Auto Loan

fishbjc — Tue, 26 Mar 2013 15:32:47 GMT

-3 for our inquiry.

Re: Auto Loan

Anonymous — Tue, 26 Mar 2013 15:42:04 GMT

minus the hit for the inquiry, the're wouldn't be any dramatic drop like a 20-40 point decrease? I thought the more debt you had the more it will bring down your scores. Well if it doesnt hurt me as much as I thought, i'll be doing the happy dance because i'm still on the rebuilding trail

Re: Auto Loan

chevyman — Tue, 26 Mar 2013 15:50:30 GMT

What kind of interest rate u get

Re: Auto Loan

fishbjc — Tue, 26 Mar 2013 15:58:36 GMT

No, it's installment, not a cc. We purchased a certified pre-owned Escape with 20k, put down zero, 3.9% interest for 5 years.

Re: Auto Loan

chevyman — Tue, 26 Mar 2013 16:00:05 GMT

Nice rate but a ford

Re: Auto Loan

Shogun — Tue, 26 Mar 2013 18:11:43 GMT

You take a hit for the Inquiry and take a hit for your AAoA. But this fades fast. It gives you a positive TL that will help strengthen your CR. It's a necessary evil so to speak.