Seriously confused...

Anonymous · ‎03-03-2008

I currently have a $16,000 auto loan, I'm selling the car and paying the loan off, so that I can get a auto loan around $12,000. Will this hurt or help my credit score? Either way it will help my bank account so that has to be done.

But I also have 2 student loans totaling $2900. With a monthly payment of $100.

I have 4 tax liens on my file all have been paid and I have six more years before they drop off.

I was talking with a bank rep and he told me because I don't have any revolving credit (credit cards) it was impacting my credit score in a negative way.

After running the stimulator it shows that if I apply for a card with even a $1,000 credit limit I could take a bump in my score.

Is it worth it to take the bump on my scores and make my student loan payments on my credit card and then pay the card off every month for the next year? Would this improve my score? Or should I just get a secure card from my bank to help improve my score?

llecs · ‎03-03-2008

A new car loan would temporarily hurt your score. It is the newness of credit and the inquiry that is doing that. However, typically by 6 months, the damage goes away. For example, I received 7 new cards since August. My score took a 50 points hit but after 3-4 months, everything mellowed out.

The student loans are fine. Continue as agreed.

Have little experience in public records.

If you have 0 in revolving credit, then I'd add 2 more... one store card and one cc. I didn't use or have any CCs for 7 years and received a big boost when the first card started to report. I also got a sizable bump when my Macys first started to report. The CC limits are unimportant. Just pull out the card and use it once every 2-3 months if you don't want to use it frequently. Always make sure the card reports less than 10% of the CL.

Anonymous · ‎03-03-2008

CC UTIL and payments are 30% of your scores. Some people take a hit when auto is paid off & when a new auto hits.......this will level out.....it doesn't happen to everyone!

Take your time to pick CC.....you might want to check the CC thread to see who is offering what on CC. As for int. and yearly charge. It will go by your score when applying.

All CC should be used for small amounts & PIF before report time. They do not need to be used every month just once or twice a year to keep it active.

IF you mean to transfer full amount from student loans & closing that account NO!!!!!!!

Student loans are a good TL keep them....if no baddies.

Yes you can make payments with a CC BUT always PIF within grace period & before report time.

Anonymous · ‎03-03-2008

Thanks guys for the answers, i will get started on my research for a cc.