I am helping out a good friend purchase a vehicle..$40000 ! I know it is a large amount, I am going to finance it and then pay of the entire balance in a little less than 3 months. He is good for the money... that is not my concern To make a long story short, I was curious on how this will/would effect my FICO Scores ? They are all in the low 700's right now. Will my score increase because I will pay it off quickly or will it decrease for what ever reason ? Once it is PIF will my FICO score drastically change ? Thanks !
Alot will depend on the different types of credit you have. If this is your 1st auto loan then it may help your score although, paying it off in 3 months may not do much if anything for the score because it won't have time to have "seasoned". Also, the lender may not even report it because sometimes it takes them that long just to report for the 1st time and if it is already paid off it may not get reported at all. paw67
Good post! exactly what I was going to say. It took my lender almost 3 months to report my car loan the first time.
