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New to credit, how will my auto loan affect my score

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amclaughlin42
Regular Contributor

New to credit, how will my auto loan affect my score

So, I am new to credit. So new I don't have a FICO score yet. I have had a Cap1 secured card with a 201 credit limit for just shy of 2 months. in a few weeks my first car payment is coming up. I was in need of a new car. I used to pay everything with cash, and thats how I bought my first car. I got a car loan for $16,509 it has a high interest rate of 21% since I had no credit and needed a car to get back and fourth to work. I have about 30 inquiries on my credit report due to trying to get a car loan. I have credit karma. They were able to pull my Vantage 3.0 Score of EQ 619 and TU 614. Since my score is so new, will having that loan on my report lower my score? I will make payments around the 10th of each month, they are due the 13th of every month. The loan has not registered yet, because I will make my first payment in just a couple of weeks. 


Cards: CreditOne AMEX - $600, Cap1 QS - $500, Avant-$300, Cap1 WM Store - $300
GOAL - Chase FU - Goal Score 725
07/2021 - Experian 675 Equifax 673 Transunion 688
07/2019 - Experian 623 - Equifax 628 - Transunion 622
04/2019 - Experian 597 - Equifax 610 - Transunion 619
01/2017 - Experian 479 - Equifax 457 - Transunion 461
04/2017 - Experian 502 - Equifax 473 - Transunion 476
Message 1 of 3
2 REPLIES 2
SamsungHDTV
Established Contributor

Re: New to credit, how will my auto loan affect my score


@amclaughlin42 wrote:

So, I am new to credit. So new I don't have a FICO score yet. I have had a Cap1 secured card with a 201 credit limit for just shy of 2 months. in a few weeks my first car payment is coming up. I was in need of a new car. I used to pay everything with cash, and thats how I bought my first car. I got a car loan for $16,509 it has a high interest rate of 21% since I had no credit and needed a car to get back and fourth to work. I have about 30 inquiries on my credit report due to trying to get a car loan. I have credit karma. They were able to pull my Vantage 3.0 Score of EQ 619 and TU 614. Since my score is so new, will having that loan on my report lower my score? I will make payments around the 10th of each month, they are due the 13th of every month. The loan has not registered yet, because I will make my first payment in just a couple of weeks. 


I think it may help your score, however you may find better answers in the 'rebuilding credit' section of the forums. What you should look into is refinancing as soon as possible. You need to get another 1-2 cards just to build credit. Look into student credit cards with no annual fees. However, you have 30 inqs on your reports so that is a concern. If possible you need to make extra to principle payments to keep the LTV at a level that you can refinance. Your loan will go upside down, but you need to keep up with it or you will be stuck in that loan to its maturity. It will cost you significantly. I'm not sure if you looked at the loan contract. At 60-72 months, you will pay $10-12K in interest on top of the $16,509 for the car.

 

 

Message 2 of 3
amclaughlin42
Regular Contributor

Re: New to credit, how will my auto loan affect my score

I definitely plan to refinance in about 18 - 24 months. My TU only shows 30 my EQ shows 11. As well as who my loan is through hasn't shown up on my report either. Also thanks I will try the rebuilding credit board.

Cards: CreditOne AMEX - $600, Cap1 QS - $500, Avant-$300, Cap1 WM Store - $300
GOAL - Chase FU - Goal Score 725
07/2021 - Experian 675 Equifax 673 Transunion 688
07/2019 - Experian 623 - Equifax 628 - Transunion 622
04/2019 - Experian 597 - Equifax 610 - Transunion 619
01/2017 - Experian 479 - Equifax 457 - Transunion 461
04/2017 - Experian 502 - Equifax 473 - Transunion 476
Message 3 of 3
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