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Impact of paying off Auto Loan, getting a new one?

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Winchester2005
Valued Member

Impact of paying off Auto Loan, getting a new one?

Hello-

My car was recently stolen, and am needing to get a new auto loan. What would the impact be to my score if my old auto loan (that was 25% paid off) is replaced with a new one?

 

Also currently only have 2 inquiries on my report, and my overall revolving utilization is at 31%. Current transunion score is 743.

 

Wondering if there would be a significant impact to my fico with an additional inquiry and a new auto loan replacing my old one 

 

Let me know if I could provide any more details 

Message 1 of 5
4 REPLIES 4
pizzadude
Credit Mentor

Re: Impact of paying off Auto Loan, getting a new one?


@Winchester2005 wrote:

Hello-

My car was recently stolen, and am needing to get a new auto loan. What would the impact be to my score if my old auto loan (that was 25% paid off) is replaced with a new one?

 

Also currently only have 2 inquiries on my report, and my overall revolving utilization is at 31%. Current transunion score is 743.

 

Wondering if there would be a significant impact to my fico with an additional inquiry and a new auto loan replacing my old one 

 

Let me know if I could provide any more details 


The impact to your FICO scores may depend on the timing of when the old loan is reported closed / paid.    If this happens prior to the new loan reporting, and if it's your only open installment loan, then you may lose approx  20  - 30 points as a worse case scenario. 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 5
Winchester2005
Valued Member

Re: Impact of paying off Auto Loan, getting a new one?

Would this be temporary? As in if the old loan is paid off theb the new one reports the score would then cure?

Message 3 of 5
pizzadude
Credit Mentor

Re: Impact of paying off Auto Loan, getting a new one?


@Winchester2005 wrote:

Would this be temporary? As in if the old loan is paid off theb the new one reports the score would then cure?


Yes your score will eventually recover, however It's hard to say how long it will take as the new loan would be reporting with 100% utilization, plus any inquiries associated with the new loan will also slightly ding your FICO score. 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 5
SouthJamaica
Mega Contributor

Re: Impact of paying off Auto Loan, getting a new one?


@Winchester2005 wrote:

Hello-

My car was recently stolen, and am needing to get a new auto loan. What would the impact be to my score if my old auto loan (that was 25% paid off) is replaced with a new one?

 

Also currently only have 2 inquiries on my report, and my overall revolving utilization is at 31%. Current transunion score is 743.

 

Wondering if there would be a significant impact to my fico with an additional inquiry and a new auto loan replacing my old one 

 

Let me know if I could provide any more details 


I don't think it would have significant impact, once the dust settles on the reporting to the bureaus.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 5 of 5
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