I went through a rebuild an in under 3 years my credit score went from 590 to 815. I was pre-appeoved for a car loan at 2.9% through my credit union, and I pulled the trigger and a pre-owned BMW 5 series. There was no hard pull for the loan and I expected a drop because I took out a $30k loan. It dropped 3 points but I had an inquiry drop off so now its about 816. It went up a few points. So I am curious, how will this loan affect my credit score? Will it go up as I pay this off? When? How much should I expect? This is literally my first auto loan...at 53 years old so I am curious how it all works from a credit score standpoint. I have normally bought all my cars cash and in full...thinking that was better...because I didnt borrow money nor did I pay interest. A few data points...my available crediyt is $80k. Utilization is under 1%. I have 11 open accounts including the car loan. No late payments. AAoA is 4 yrs and 9 months.
@DaWhole9 wrote:I went through a rebuild an in under 3 years my credit score went from 590 to 815. I was pre-appeoved for a car loan at 2.9% through my credit union, and I pulled the trigger and a pre-owned BMW 5 series. There was no hard pull for the loan and I expected a drop because I took out a $30k loan. It dropped 3 points but I had an inquiry drop off so now its about 816. It went up a few points. So I am curious, how will this loan affect my credit score? Will it go up as I pay this off? When? How much should I expect? This is literally my first auto loan...at 53 years old so I am curious how it all works from a credit score standpoint. I have normally bought all my cars cash and in full...thinking that was better...because I didnt borrow money nor did I pay interest. A few data points...my available crediyt is $80k. Utilization is under 1%. I have 11 open accounts including the car loan. No late payments. AAoA is 4 yrs and 9 months.
It depends on whether you have other open installment loans, and if so what their original loan amounts and current balances are.
Congrats on the rebuild. Nice job. New loans will drop your age metrics. The drop will be minor due to you must have a thick file with that score. Anything really above 760 is in the same group. Paying down the loan will be a point here and there. The biggest jump is once it goes below 8.99%. There's been talk for yrs also around 60+/-%. Nothing to write home about though. Everything rebounds in time. Enjoy your new ride and the 800 club. Many would love to be in your shoes.
