When will my car loan positively effect my credit?

Question

I bought a new car in December of 2006, I have made every payment on time. I need to know when this will reflect in my credit score. I am looking to get my score up so can get a better rate on my home loan. The house is just being built and I wont close on it until December.

Answer 1

i thought that as long as you were making payments every month on time your score will continue to raise. make sure that its not other factors that are not allowing your credit score to increase such as credit cards, late payments, inquires, too many opens accounts, closed accounts, balances on credit card more than 30% of limit, etc.

Answer 2

The answer is yes, it can, IF the loan issuer is reporting to the credit bureaus.

1) It can take YEARS to fix a credit report, or effect change in your score. (I speak from personal experience)

2) A loan can LOWER your score in some cases. Ex: If your total possible debit is close to max, this can lower your score.

3) Call the loan issuer and ask if they are reporting your loan to the credit bureaus. If not, you can ask if they will.

4) Get a copy of your credit reports, and go through them now, if you have not.

5) Remember that you can add a memo of explanation on issues that you see as extenuating.

Good luck!

Answer 3

As long as you have made your payments as agreed and never been late? Your score is already effected. Lenders look for at least 12-18 months of paid as agreed installment credit when deciding weather to loan money for a home.

This is assuming that your lender reports to the credit bureaus.

Answer 4

I thought everything that involved credit, including a car loan, impacted on the credit rating!!!

Answer 5

Check on it in October.