We have been preapproved for a mortgage, although our score numbers mid 600's made it close to get the loan we wanted. We are not going to close for another 6 months as we are building and we have not yet signed on contract on our house yet. We currently have an auto loan that is 1.5 years old(purchase) and are interested in trading that car in to lease another car where our payments would be at most the same as they are now. I know we shouldnt make any major credit moves until we secure our mortgage and move in, but would this situation make an impact? Thanks!
Re: autoloan how will it effect credit I recently bought a new truck, a credit union financed it, 4 days after they cut me the check, they reported to all 3. I have no idea how it affected Exp or TU but my Efx report dropped from 691 to 654 but another account also hit from the credit union, a line of credit, they both reported the same day to all 3 (both were reported 4 days after opening, man that was fast, I opened the accounts on Fri. they were reporting to ALL 3 by Tues.) anyway, about a week later my score went up to 664. Still stuck there, been a couple of weeks. I don't know if this helps you, just wanted to let you know how it affected me.
Re: autoloan how will it effect credit ps. the line of credit has never been used, so no, it did not drop bc of balance.
Re: autoloan how will it effect credit yes!!! it will make big impact, specially your score are in the mid 600, new hard inquiries pull your points down, and "new account" too. Mortgage lender pre-approved your application but they do pull another prior closing, well, at least that is what they did to my brother, he was pre-approved, But they almost disqualify him @ closing 'cause he got himself a homdepot & target cc & it pulled his score down to the low 600, his EXP show 3 HARD inq from the bank!! ...be real careful on everything you do now on....... vets..what you think?
Re: autoloan how will it effect credit Thanks for the thoughts so far...thats the big thing i was concerned about; the "new account" on my report. Although our debt level will be unchanged i was curious how hard that could hit. i knew the inquiry would be a hit, but i figured in 6 months at closing time when they pull again i may be able to bounce back from that. Eric
Re: autoloan how will it effect credit I will say this once, so everyone please listen up: DO NOT APPLY FOR CREDIT OF ANY TYPE WHILE IN THE MORTGAGE PROCESS There are plenty of mortgage gurus on the board that can back me up on this, but banks get really freaked out when they see additional applications for credit before the loan has closed. There have been many cases where loans have been denied right before closing because of recent applications for credit. This would include refinancing existing debt, new credit cards, financing furniture or appliances for the house, etc. I know it is difficult to resist sometimes, especially if your closing is a long ways off like yours is, but don't do anything with credit until you close. I would like to refi my current auto loan, but I am waiting (and continuing to pay higher interest) until the 28th when we close. After I have the keys in hand, I will make the move, but not before.
Why would you even think about doing a dumb thing like apply for new credit? Don't you like the idea of owning a home? You have already confessed that your credit score is low. You were in luck that you qualified in the first place. Now you want to push your luck. Do you like Sky Diving with only one chute also? You should be working to get your score higher so you can close the loan. You don't have a house until they give you the keys after you sign the papers. And in your current case, odds are 50 -50 that the loan would close. And thats before you open another credit line.
Do you like Sky Diving with only one chute also? FunkSoulBr ================= No he's out for bigger thrills like no chute at all! LOL The END ************************* LB 59
