I financed a car at $18,000, beginning of April. My non-fico scores took quite a hit. Creditk -23, Credit.com-13. This is my first loan so, how bad of a hit are my actual fico scores taking?
I know my AAOA went down to 5 years and a new account is reporting. I want to start looking at homes in a year too!
I know my AAOA went down to 5 years and a new account is reporting. I want to start looking at homes in a year too!
Hard to say how much they'll fall. It all depends on the individual profile. I wouldn't think it would be too far off from the range you just described. They'll start coming back up after a few months.
@RM21 wrote:
Hard to say how much they'll fall. It all depends on the individual profile. I wouldn't think it would be too far off from the range you just described. They'll start coming back up after a few months.
Is that because the loan will start to age then? I've never quite understood how these things work. In a year I believe I will just pay the car off entirely. Bet that will cause something like this to happen again, right ?
@Anonymous wrote:
@LShawn08 wrote:
@RM21 wrote:
Hard to say how much they'll fall. It all depends on the individual profile. I wouldn't think it would be too far off from the range you just described. They'll start coming back up after a few months.Is that because the loan will start to age then? I've never quite understood how these things work. In a year I believe I will just pay the car off entirely. Bet that will cause something like this to happen again, right ?
Without knowing the entire detail of your credit file, it will be hard to tell why your scores dived. Did you see the same decrease when you looked at your real FICOs?
Not quite, YIM. I just wondered from thoses non-fico scores taking a dip. Did my fico scores also take a bit of a dip. I monitor my reports frequently but only check scores when their needed. I really just wondered, if in fact my scores did take a bit of a hit. Would they rebound back into the 760's and higher before I start looking for a house end of next Spring. I pre-plan everything.....Sometimes it's a blessing and yet a curse.
@LShawn08 wrote:
I financed a car at $18,000, beginning of April. My non-fico scores took quite a hit. Creditk -23, Credit.com-13. This is my first loan so, how bad of a hit are my actual fico scores taking?
I know my AAOA went down to 5 years and a new account is reporting. I want to start looking at homes in a year too!
Normally when you take out an installment loan your FICO scores take a hit, primarily because your utilization percentage is high at the outset... 100%.
As to the amount of the hit, that varies with credit profile... most important factor would probably be whether you have other installment loans or not, and if so their size.
In my case, I just took out an auto loan which hasn't reported yet, and the FICO 8 simulator is predicting I'll take a 30 to 35 point hit.
As you pay down the loans, the points come back.
When you pay the loans down to zero you take a hit again.
@SouthJamaica wrote:
@LShawn08 wrote:
I financed a car at $18,000, beginning of April. My non-fico scores took quite a hit. Creditk -23, Credit.com-13. This is my first loan so, how bad of a hit are my actual fico scores taking?
I know my AAOA went down to 5 years and a new account is reporting. I want to start looking at homes in a year too!Normally when you take out an installment loan your FICO scores take a hit, primarily because your utilization percentage is high at the outset... 100%.
As to the amount of the hit, that varies with credit profile... most important factor would probably be whether you have other installment loans or not, and if so their size.
In my case, I just took out an auto loan which hasn't reported yet, and the FICO 8 simulator is predicting I'll take a 30 to 35 point hit.
As you pay down the loans, the points come back.
When you pay the loans down to zero you take a hit again.
It is my only installment loan, first and only in fact. Until it comes time to start looking at homes. I guess when I check my scores again in a week or two, I will see how much damage has occured.
@LShawn08 wrote:
@SouthJamaica wrote:
@LShawn08 wrote:
I financed a car at $18,000, beginning of April. My non-fico scores took quite a hit. Creditk -23, Credit.com-13. This is my first loan so, how bad of a hit are my actual fico scores taking?
I know my AAOA went down to 5 years and a new account is reporting. I want to start looking at homes in a year too!Normally when you take out an installment loan your FICO scores take a hit, primarily because your utilization percentage is high at the outset... 100%.
As to the amount of the hit, that varies with credit profile... most important factor would probably be whether you have other installment loans or not, and if so their size.
In my case, I just took out an auto loan which hasn't reported yet, and the FICO 8 simulator is predicting I'll take a 30 to 35 point hit.
As you pay down the loans, the points come back.
When you pay the loans down to zero you take a hit again.
It is my only installment loan, first and only in fact. Until it comes time to start looking at homes. I guess when I check my scores again in a week or two, I will see how much damage has occured.
Then as you pay it down you will see your scores rise, all other things being equal.
There are various benchmarks. 79% and 9% are widely believed to be among them. There are others but there is no consensus as to where they fall.