I checked EXP today and saw my score had dropped 3 points - I now see my auto loan reporting - pays as agreed - I am certain this auto loan will help future limits - it is reporting an open balance of $28K, Summit Acceptance Corp. I plan on making a $10K installment payment Sept 1. THEN, I will only owe $18K on the $40K car. I will pay another $10K Feb 1 - then balance will be around $5K as of Feb 2, 2003. For credit purposes, I will finish the $5k through installments by 7/1/03. THEN - I will have a PAID CAR LOAN on my report, as all the bad dogs go outside Nov 2003 when the Ch 13 disappears. NOT BAD - paying off a 72 month car loan in 12. THAT's the plan for the A4! aarrff - dogman
Also - just looking at EXP again, they did get the debt in the right categories. Installment debt - $28K Current credit card - $2K Available credit is showing 83% - but it should be higher as I do not carry balances. aarrf - dogman
Hi I'm going to add my .02 in here If your plan is to max fico points while adding a great installment loan.. you need to let it hit 25 months (24 but I always like to add 1-2 more in there). I truly believe the analysts I've spoken with... that paying off installments in 23 or less months doesn't really earn much in points.... that you hit a nice bump at 24 then the largest (and last) bump at 36... but 23 and under really lessens the effect of the loan. now, financially it is smarter... but I think I know that you want the fico bump... also, remember fico is a predictor that hates large changes... I also buy that it likes to see steady decreases or increases (like 2k per month in payments vs. 10k at once)... but I'm less sure of the score effect of this factor than I am of the 24 month issue... I'd figure out how to minimuze the interest by paying it down rapidly but I'd keep the loan 25 months... for fico anyway... couldn't help but post of course... the other factor in your file is the drop date of the bk..and I can't recall that one off the top of my head... but if I remember correctly it's soon and that will likely make a HUGE difference in points too... the combination of a new installment and the bk drop will be HUGE for you
GOOD info Marie! I certainly could do that. No Online payments - which I wish they did have - you can do a phone payment 2 days before the due date for $6.95 a pop - have not done that. Nothing to show anything secured - shows as installment loan for $28K. Looks fine to me.... Yup - I want the FICO increase! ALL Chap 13 and all negatives fall 11/2003. I then will have perfects on 30+ accounts, most of which were opened and then closed thru the rebuild process. The AUDI dealer told me to carry it for at least 12 months. Marie - what about a refinance in 6 months? By that time I would have the car over 1/2 paid for? What are your thoughts - my thoughts are IF I did a refinance, do it 11/2003 and get the PRIMEST RATE POSSIBLE.... later - dogman
Marie- Just curious why you asked if it said secured? I have an old paid car loan but it says: Secured loan/ transferred or sold. I traded in the car for another, is this at all hurting me? When I went thru Ford in January, they said the only auto loan that shows up is my Honda, but I've had the one above, the Honda and another thru Ford (only on EXP). I noticed Ford says "Auto".....just thinking out loud, what are your thoughts?
Dogman, Get out your pen and paper because you're probably going to have to send a letter to Cap One. I too have my car loan through them and about 4 months ago, EX said that one my negatives was that I had an unsecured loan. Sure enough, I looked closely and no where on it did it say "auto". Now I made the very foolish mistake of challenging it with EX and they were lazy and just deleted it. To make matters worse, Cap One thought they were reporting to the wrong person and they stopped updating TU and EQ. I had to send a fax to them and get it straightened out which was difficult because EX didn't want to reinsert. My advice: send a note to Cap One and tell them to correct the problem. You can get the correspondence address at www.peoplefirst.com. When I faxed them, they literally fixed it in a couple of hours but the EX thing took a couple of weeks.
I have several accts cap one/summit being one that doesn't report as secured a wells fargo installment for a A/C unit being another. Should all secured installment loans be listed as such and if they are not what sort of a points hit am I taking?
I previously had a car loan through Cap One/Summitt. Never a problem. I also had a car loan through Onyx acceptance and HAFC. Here is what I did..... I had the Onyx loan first for a used car, total price of $14000.00. I paid this loan on time for a year. The intrest rate was a crazy 17.95%. I received an offer in the mail from Capone Auto to refinance my current autoloan for only 12.95%. I called and they said I was already pre-approved. I did the transfer and they paid off my loan with Onyx, I now have one very good tradeline showing it is paid and was never late. I then after another year contacted Household and spoke to them who said I could refinance at pretty much the same rate, but my plan was to have another paid car note listed on my CR. I did this and now within 3 years I have one current car loan listed as never late and 2 others listed as paid/never late. This bumped my score almost by 50 points. Give it a try! Tac
THX for the advice - hmmm - learnsomething new every day! You have been using them - good results? Do they refi interest rates after a few large payments? THX - Dogman
Aarf I forget you're paying a bit higher interest rate with Summit... ok... you're so close to your negs dropping (and I'm starting to remember your interest rate) that I would do as you plan and pay it off quickly... keep it 13 or 14 mos just to make sure the 12 mos book in... that will get rid of the negative effect of a new trade line and will start building points. Your interest rate doesn't justify keeping the loan... I now remember so just pay it off and wait for the derogs to drop... then see where you are. I am guessing in 11/2003 you'll be prime without another installment loan and unless you want/ need another installment loan I wouldn't bother doing anything until then... I'd just wait and see what the scores do next December... then if you want to refi in Dec next year, you can at totally prime rates. I wouldn't even bother trying to refi before then because the interest rates you're paying won't be worth the trade line... it's only credit... after all. happy for you paying this off so quickly. You'll save a LOT of money and ultimately... that's the smarter thing to do... in Dec you may decide your file is fine and that would save you a lot of interest
thx Marie - yes its 12.95% - but I have to say, coinsidering the market this last two months, my SMARTEST DECISION was to buy a new car and only lose 25% of its value the second I rolled it off lot LOL! I STILL HAVE A CAR! I did not lose 75% of my "paper money" - aarrfff! NEVER would have said a new car is an investment - but - it was a MUCH BETTER financial move to pony up for a new car - than to leave it in the MKT! Amazing.... aarrfff - dogman
