if you pay two auto loans off and two months later open two more does it hurt your credit?
Question by spider_webs_trap: if you pay two auto loans off and two months later open two more does it hurt your credit?
i paid on the first wo auto loans for two years and then i paid them off a month apart. i went down to the deaership and i bought me and my wife two more fuel efficient cars on the same day
Best answer:
Answer by Benzo
your score will slightly drop (5-15 points) due to new debts but it’ll be back up in a few months.
What do you think? Answer below!
Tags: apply for credit card two months later, Auto Loans, Credit Loans, Months, more than 2 open auto loans, pay auto loans off, paying for two car loans
You’ll get dinged for applying for credit. But lenders will see that you were able to pay off the previous loans, and that’s one of the reasons why you were approved for more. These loans will help you improve your credit a lot more than the inquiries will take away.
If it hurts it at all, it’ll be one or two FICO points.
Not worth losing any sleep over.
But, I don’t like the idea of buying any car with a car note.
I’d rather buy a 4 year old car for half-price and invest the difference.
Watch this, and see why
http://www.daveramsey.com/etc/lms/drive_free
No it will actually help your credit.
It shouldn’t hurt your credit. In fact, it should raise you score over time, especially if the two loans that were paid off are paid as agreed. Recently, experian and fair issac (the company that created the FICO score) changed how they calculate scores for auto loans so I not sure how this will effect the score in the short term, a couple of months.