2006-12-15 09:41:14 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
I just bought a vehicle. I understand that my credit will go up if I make my payments on time. Will me buying a vehicle effect my credit in the short time in the begining since I bought it?
2006-12-15 10:25:56 · update #1
If you get a loan and make all your payments on time and make payments for at least a year, it will raise your credit score. If you buy a car on a loan, it shows up on your credit record as an outstanding debt. This could affect being approved for other loans or a mortgage depending on your income until it is paid off.
2006-12-15 09:42:41 · answer #1 · answered by Geoff S 6 · 0⤊ 0⤋
For a short period it will. The company did an inquiry on your credit (that one hit), you have a new account (two hits, one for the new account and one for your average account age being lowered since it has not been opened long), the amount you owe is over 30% of the amount (another hit). You'll be okay in the medium to long term if you make your payments on time. After awhile, it will actually help you increase your score.
2006-12-15 16:51:32 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
The transaction of signing the paperwork and handing them a check doesn't affect your score, but opening a new line of credit (a loan) might depending on a number of variables. You can learn how credit scores are determined by visiting the site below.
Fallacy: My score will drop if I apply for new credit.
Fact: If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called “inquiries”) will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.
2006-12-15 09:47:59 · answer #3 · answered by personalfinancedaily 3 · 0⤊ 0⤋
Not if you are faithful about making your payments and never fall behind. This will actually increase your credit rating.
2006-12-15 09:50:00 · answer #4 · answered by soulguy85 6 · 0⤊ 0⤋
Anytime you get credit, a loan or anything like that your credit score goes down.
http://www.handlethetruth.net
2006-12-15 09:48:45 · answer #5 · answered by truthhandle 1 · 0⤊ 0⤋
Not if you pay your loan payments on time!
2006-12-15 09:42:16 · answer #6 · answered by bissa 2 · 0⤊ 0⤋
no paying it off dose
2006-12-15 09:49:02 · answer #7 · answered by ? 6 · 0⤊ 0⤋