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When you buy a car

blkbishop86
Established Member

When you buy a car

Does you Scores go up or down, or remain the same. What about paying the car off a year ahead of schedule. Scores go up? Thanks Robert
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haulingthescoreup
Moderator Emerita

Re: When you buy a car

You will get a small-ish ding for the inq. If you don't have any other installment credit, your score might well go up, because you have improved the mix. Otherwise, it might go down some, but not bunches.

There's not a lot of score movement associated with installment loans. There is some sort of preference to have them paid partially down (I think I remember 60%, but I could be dreaming), but otherwise, installment util is just sort of eh. No bonus for early payoff; in fact, you want it to report timely payments for at least 6 months to a year. It's possible that you will even get a score drop with payoff, if it means that you no longer have any open installment credit.

There's just not nearly the drama associated with installment loans as there is with revolving. I paid off one student loan early and lost a point, and paid another off early and gained one.

*** I just noticed that you have this thread started in Bankruptcy. You might get more responses if it's over in Loans or in FICO Scoring. Which board would you like me to move it to? --unless this is going to lead to a BK issue. Smiley Happy

Message Edited by haulingthescoreup on 01-22-2008 12:14 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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blkbishop86
Established Member

Re: When you buy a car

I put it here because I just got paid my bankruptcy off. This is where I'm at the most and it was easier to track.
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