Hello, this is my first time posting. I've spent the last month reading and learning from everyone. What I'd like to know is what effect a new auto loan would have on a score once it starts posting. Would it first lower your score and then raise it? Lynn
Since it depends on your credit history it would work like this... if you have had established history it might lower your score a few points becuase of you high amount owed to loan balance. But it also might raise your score a few points due to the variation of credit... if you have unestablished or a poor credit history it may lower your score because you are trying to get new credit. But it also might raise you score based on having a positive acount listing.. confused?? so are we all... LOL typically though any account reporting positive will help your credit score and profile... kev
I've had an auto loan since last July, and when the account initally hit the file, it really drug down my score. Now, it has given me more points, and my score goes up every month they update it because I am owing less and less on the account.
a new installment loan will pull down your score (mine almost 20 points) because it is 1. less than 1 yr old acct 2. your installment loan amount per month goes up 3. inquiry made in obtaining the loan After 6 months of ontime payment your score should go up a little, but it will still cost you points bc it is less than a year old (as per Experian Creditexpert)
Does anyone know how much "a little" is for the 6 month score boost? And/Or how much the larger boost is after 12 months? Thanks!
Boy o boy this is grate your score goes down and your loan and insurance rates go up for something that has nothing to do with your credit worth.
