Does a new auto loan effect utilization?

[TilltedBrim]

Does a new auto loan effect utilization?

[llecs]

Not revolving since it's an installment. Both installment util and revolving util are scored separately and much differently. Installment util is a teeny tiny part of FICO scoring. That's a good thing too, otherwise your scores would plummit for a long time when adding a mortgage or car.

[TilltedBrim]

Thank you kindly for your response ... 

[RobertEG]

+1

Additionally, the affect of the new installment loan filters out into other categories, and is not limited only to util of credit.

It may, if your only installment, improve your mix of credit.  Being a new account, it will necessarily reduce your AAoA. 

[Cloudlb]

(helpful responses, nothing to add -- except the grammar/misuse of affect/efffect is driving me crazy! sorry)

[llecs]

Don't let it effect you. Your not crazy.

[John060675]

Just to undertand the difference in scoring installment loans, does the same penalty for a new account hold true in FICO scoring?  I mean, will there be a bump in score after a year or so once the account leaves the new stage?

I think that a new revolving line is considered new until after one year, but I could be wrong.

[llecs]

Any new account can impact your score with regards to the new acct ding and/or AAoA changes. All OC accounts are weighted the same. However that ding can be offset by improvements to mix, improvements to util, etc. That's why you'll see some folks posting about increases when they added CCs.

A new TL can be considered new beyond a year, but most, if not all, of the impact would go away within a year.

[Shogun]

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@llecs wrote:

Any new account can impact your score with regards to the new acct ding and/or AAoA changes. All OC accounts are weighted the same. However that ding can be offset by improvements to mix, improvements to util, etc. That's why you'll see some folks posting about increases when they added CCs.

A new TL can be considered new beyond a year, but most, if not all, of the impact would go away within a year.

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+1