Auto Loan

[hankfit247b]

CS is not great ~650, I just PIF’d 3 accounts that were Written Off (in the past week).  All three were in Collections (1 Internal (Target), 2 External (HSN & CapOne Spark)).  So it’ll take ~20-60 days for those to reflect on my CR.  Plus time for Courtesy Letters and/or Disputes if necessary…. Utilization is now ZERO!!!!

Question is:

I want to purchase a ~$28k used EV.  I want to know based on others' experience, how it will look on the CR in the following scenarios:

Finance $28k; $10k down – Net $18k financed.  Will it report as $28k, $10k paid?  Or Net $18k/Owe $18k (100% Utilization)

Or

Finance $28k; $2k-$3k down – Net $25k/$26k finance.  Then immediately pay $7k-$8k once it hits the CR. Which would then drop my Utilization.

[JoeRockhead]

Your initial down payment would be disregarded. The only amount that will report is the amount financed.  

[hankfit247b]

Thanks!!!  That's what I thought!  I wanted to double-check to ensure Maximum positive impact on my CS.

[Beefy1212]

20/26k vs 18/18k isn't a huge point difference, there is a point difference and you will see a few points but... 

Given how much smaller your payments will be and the loan percentage paid gain on an 18k loan vs a 26k it won't be long long before that 18k loan will have the same of better loan percentage paid off.

The smaller loan gives you the choice between making larger payments and paying less interest over time or making a smaller monthly payment if someone happens.

Scorewise I don't think it matters much beyond the first few months, if it were me I would take the safer more flexible loan than worry about protecting a score you shouldn't be using for a bit anyway.