Does an auto loan have more "weight" than a CC? [fico scores] [mortgage loan]

admin — Fri, 26 Aug 2011 14:50:00 +0000

And is a mortgage have more weight than anything else? The reason I want to ask because knowing me, if my FICO scores will increase every six months to the point on my car loan. TIA.

Reply:good to know thesse respones here thanks for responding I always wanted to know others opinion on this also…..guess I can pay off my car then and keep my CC debt to minimal.

Reply:Totally the case with me too. I have terrible scores and I KNOW they should be higher, yet for some reason they are tanked -and I know it is NOT ALL utilization. It really inflames me when I have a BK clear report yet see months or even a year or so POST BK and STILL higher scores than ALL POSITIVE accounts.
There is NO logic, whatsoever, nor fairness, in that. AT ALL.

Reply: In talking with actual loan officers and underwriters (like at credit unions, banks and credit card companies -and I mean the person who says YEAH or NAH on your app) that REVOLVING accounts carry the MOST weight in terms of how you pay your bills. I have been told that generally, installment loans are for a fixed purchase, you pay them and they are done – where revolving accounts (except a mortgage, naturally) stay around and show how you pay each month on an account you run up and pay down.
Let me put it to you this way: In PURELY score terms, NOT A SINGLE GREAT OR SIGNIFICANT score increase has ever happened from the considerable number of (currently FOUR open auto loans I have) to the TWENTY TO TWENTY FIVE paid auto loans I have from the last decade – not a damn good score impact.
NOW, on a MANUAL review: I am in for a car loan – shows I ALWAYS have paid my car loans on time and as agreed; again, a MANUAL review or by a credit union………… Revolving accounts, they MUST carry the most "score weight" and even though I have many (too many are high utilization) they look GOOD on a manual review……
That is pretty much how it was explained to me and my personal experience…………
I agree, I can say from personal expereince, paying car leases or installemtn loans has never helped me. For example i have perfect mortgage, home equity, and car loans. CC not so perfect. I have no collections, but my scores are below most on here that have just discharged BK 6 months ago or have 5 unpaid cos.
I was told by a mortgage broker once that you get a bump when you refinance a mortgage from the old one being paid off, but they guy was a scum and Im not sure I believe that now.
this is only from a score perspective not a manual review.

Reply: And does a mortgage loan have more weight than anything? The reason I'm asking is because I want to know if my FICO scores will go up any at the six month point on my auto loan. TIA.
I'm glad someone else asked this. I'm still buzzed from pulling my new FICO scores last night and hestitate to tank them by accepting my preapproved car loan I have. Does it count toward utilization like credit card debt if you have a $20000 auto loan and it's brand new therefore you still owe $20000? Or how does that work?

Reply:Yes, IMO…I heard from a few people say that an Auto Loans have a lot more weight when trying to buy another car.

Reply: And does a mortgage loan have more weight than anything? The reason I'm asking is because I want to know if my FICO scores will go up any at the six month point on my auto loan. TIA.
Interesting question about the mortgage loan. Since the mortgage is the most difficult loan to qualify for, you would think it would carry alot of weight with fico. Also, it shows stability – you're anchored to your house. Yet I'm not sure it really does affect the score in a huge way.
Anyone else know about this?

Reply:yet having some installment loans does affect your mix of credit positively.
I've paid off 50K in student loans so far and there seems to be no impact on FICO. but having installment loans does help make your report look more balanced and well "mixed"

Reply:Installment loans that are current are pretty much FICO-neutral…that is, you won't change your scores much by paying them off early. However, there is one time it may work to your advantage to pay off a car loan early…when you are planning on applying for a mortgage. Because car payments are usually among the largest monthly payments you have, by paying off a car loan early, you can erase a bunch of $$$ from your monthly payments and lower your DTI ratios, which can help with a mortgage app. That is the one time it's worth it to pay off an installment loan early.

Reply:i PERSONALLY SAY YES AND NO MY STUDENT LOAN DIDNT HELP ME WORTH CRAP I BEEN PAYING ON THAT SUCKER FOR 5 YEARS FICO WAS STILL CRAP IT WASNT TILL I GOT MY CAR LOAN I PAID GOOD ON ON MY FIRST MONTH MY FICO WENT UP LIKE 2 OR 5 POINTS THEN 5 POINTS MONTHLY THERAFTER. I HAVE HEARD THAT MORTGAGE FIRST TIMERS GET UP TO 100 POINTS AFTER FIRST YEAR PAYING ON MORTGAGE.

Reply:BTW, just lost a good installment TL on EX and my score dropped 6 points. (reinsert: Bummer!)

Reply:I agree wholeheartedly with guy. My student loans are still reporting as IIB (even after disputing) and they're killing my score. I'm also concerned that they're hurting my Auto-Enhanced score as well. Bummer! But they'll get fixed – sooner or later. (Sooner would be the optimal choice!)

Reply: No. Installment loans carry very little weight compared to revolving credit. I have several open and closed auto loans on my credit and see no increase or decrease when they age or are closed.
This has been true for most anyone, except the installment loans which are in default. As one might assume, if the installment loans are in default, they have a profound negative impact on one's FICO scores.

Reply:No. Installment loans carry very little weight compared to revolving credit. I have several open and closed auto loans on my credit and see no increase or decrease when they age or are closed.

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Does an auto loan have more "weight" than a CC? [fico scores] [mortgage loan]