Hi, i'm new to Auto loans....i'm planing to buy a used car (about $28k) in next few weeks....i can pay it off the car right on spot BUT thinking that I might buy a house in next year and i came out a plan to get an auto loan to show on my credit reports for future lenders to see my creditworthy...SO...
I plan to get a mininum auto loan ($7500??) with mininum months (48 mo??) and pay off the loan within 2-3 months. My questions are will this hurt my credit score? will it bring any damages for my credit profile? i want to get mortgage loan for next year....
My EQ 740, EX FAKO 748, AoAA 3 years, total credit amount $21k
It will lower your AAoA, but also give you a thicker file. If you have a thin file, it will do good. If you have past auto loans ect, then probably no good done.
I would say that if you are offered 0% terms go for it, otherwise only do so if your file is lacking installment history.
Positive auto loan account history will also greatly help future Auto enhanced scores resulting in lower interest rates on auto loans on future vehicles.