Would adding an auto loan help my scores?

[Shellie]

All I have are credit cards and student loans.  Would adding an auto loan to the mixx help my scores?

[Shogun]

Student loans should be enough for installment loans on your mix.  I certainly wouldn't buy a car just to try and raise your scores.

[xaiduz114]

I'm not sure, but it might hurt, depending on how much you owe with the student loans and credit cards. If the balances left owing are low, maybe? You have to think of your debt to income ratio. If it's high, you're less likely to get another loan, and if you do, you'll probably get less-than-desirable rates.

But I'm no guru on this. Just something I've seen. Also, it depends on your credit file.

[Shellie]

I already have a car loan but the bank doesn't report.  So I'm already spending the money.  But it isn't factored in to my debt to income so that would probably not help right now.  I need to pay down my UTL it's at about 40% or so right now.  It's easy for me to keep the store cards paid off but the CapOnes get used a lot more often so the are always carrying higher balances.  I have 7.5% on my car.  I just got lucky because I got that loan when my scores were around the mid-500 range and the 7.5% is their standard rate they give all customers regardless of score.

I owe around $10k on my student loans. I make about $25k at my job. 

[IamB2]

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@Shogun wrote:

Student loans should be enough for installment loans on your mix.  I certainly wouldn't buy a car just to try and raise your scores.

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+1

Shogun is right. Student Loans are considered installment loans, therefore you already have that type of a loan on your account. This will not help your Account Mix feature of the FICO score. 

With that said, however, another Positive TL couldn't hurt. Whether your score will improve right away, however, it is hard to say. It depends on many factors. You mentioned that you are already paying for the car, just isn't being reported and thus not factored in your DTI. When you add a loan that is reported, it will be part of your DTI.

Bottom line: I wouldn't add another loan just to [potentially] increase my score. 

[EW800]

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@Shogun wrote:

Student loans should be enough for installment loans on your mix.  I certainly wouldn't buy a car just to try and raise your scores.

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+1 big time on that.  

[Shellie]

I have a bunch of store cards and 2 CapOne's & student loans.  I have a car loan with a bank that doesn't report and no mortgage.

[JennaD075]

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@Shellie wrote:

I have a bunch of store cards and 2 CapOne's & student loans.  I have a car loan with a bank that doesn't report and no mortgage.

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Why does your bank not report your car loan? Do they report any loans?

[Shellie]

They just don't report.  I wasn't given a reason.  I was told from the git that they did not report.   

[xaiduz114]

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@Shellie wrote:

I have a bunch of store cards and 2 CapOne's & student loans.  I have a car loan with a bank that doesn't report and no mortgage.

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ALL of my bf's loans through his lender are still reporting on his CR, and none have any late payments or defaults. If the loan is in good standing and has no lates, I might ask the lender if they will report to all three agencies. Not guaranteed they will, but it's worth a shot, I think!