@rebuildingg wrote:Hey, I've been working towards buying a house recently, I got approved a few months ago for an FHA loan but I'm still working towards being able to get a conventional loan so I can have more flexibility in terms of house condition.
Anyways, my Jeep was just totalled out by insurance. They payed off my Loan on it and then some. I'm buying the Jeep back and fixing it but it's kind of a toy. It getts aweful MPG, it's a rough ride, not the best for commuting.
Anyways, I'm curious about whether or not getting a new car loan will help my score increase more rapidly then just having my 3 CCs in good standing. I understand it'd drop for a couple months when I first get the loan but would it climb faster after it re-bounds? I've already done some rate shopping so I'm sure I took at least a little hit from the hard inquiries. I can get 1.94% and only wind up paying like $500 or less on interest on the life of the loan. I'll get a loan with lower payments than what I had so I should have an even better DTI ratio.
Any advice would be appreciated, thank you!
In the near future you'll lose points, (a) from the inquiries and (b) from having a high percentage balance, so IMHO it's inadvisable to get the car loan unless you're willing to postpone the house purchase. Once your car loan is substantially paid down, it will be a long term plus.
BTW you might be losing some points from paying off the Jeep loan
If you want to pick up some points in the near future here's something you can do:
open up a $525 savings account at Alliant Credit Union
take out a 4year or 5year "share secured loan" against it (no hard pull)
decline autopay on the loan
immediately pay down the loan to 9%, or $45
pay $1 or $2 a month until it's paid off
