How a Car Loan Affects Credit Score - Auto loans raise or lower scores? How fast? How many points?

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ProudMoney - Credit Cards & Personal Finance

4 жыл бұрын

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#carloans #autoloans #creditscores

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@ProudMoney 4 жыл бұрын

Support our channel by choosing your next credit card using one of the card links at: - BEST: www.proudmoney.com/best-credit-cards-on-the-market/ - CASH BACK: www.proudmoney.com/best-cash-back-credit-cards/ - TRAVEL: www.proudmoney.com/best-travel-credit-cards/ - BONUS: www.proudmoney.com/best-credit-card-bonus-offers/ - BALANCE TRANSFER: www.proudmoney.com/best-balance-transfer-credit-cards/ - GAS: www.proudmoney.com/best-gas-credit-cards/ - BUSINESS: www.proudmoney.com/best-business-credit-cards/ - FAIR CREDIT: www.proudmoney.com/credit-cards-for-fair-credit/ - BAD CREDIT: www.proudmoney.com/best-credit-cards-for-bad-credit-unsecured-secured/ (We'll get compensated if you're approved, and we thank you kindly.) Other ways to support this channel: - Get a $25 - $325 bonus when you open a SoFi Checking/Savings Account at: www.sofi.com/invite/money?gcp=68388c1c-9593-48a6-8872-7052db78d937 - Use our Amazon.com link: amzn.to/2PpQWoB (As an Amazon Associate, we earn from qualifying purchases.) . NOTE: Credit card information in this video is not guaranteed; we have attempted to confirm all information to the best of our ability but we could simply be wrong or the information could be outdated by the time you watch this video. We are doing our best here, but check our work!

@ggracias 8 ай бұрын

How did we allow the credit bureaus to have control over our financial life this extensively!???

@MarkovianMan 6 ай бұрын

It's ridiculous that when you pay off a car loan it drops your credit score.

@emmapeel4299 4 жыл бұрын

I swear you have great timing! My son just got his this AM. My daughter just asked me about one for her and how it works an hour ago! ✅

@keisukeyoshida2839 3 жыл бұрын

Exactly what I needed to hear. Thank you!

@anthonyfletchersgdbrbyu5621 4 жыл бұрын

great lesson, you really know what you are talking about

@danhealey5417 6 ай бұрын

i paid off my 2023 Toyota in five months and got hit 80 points 830 to 750...no other debt house paid for

@agak61 6 ай бұрын

oh wow ;( I wonder what happens if you take 3 years to pay it.

@blake_8711 9 ай бұрын

Really helped me understand, thank you

@shawndalynne6448 4 жыл бұрын

Thank you sooooo, much. You pretty much answered all my concerns, we just purchased a new vehicle and my score took a hard it. I didn’t have any open accounts, so my truck is the only account I have active. Would love to buy a home next year. So I really appreciate your Chanel. 😍😍😍👍👍👍👍

@williebobo454 2 жыл бұрын

You did a great job explaining, thanks

@floydbanks173 3 жыл бұрын

Yes, not an auto loan BUT when my mortgage was paid off, my TU & Experian BOTH went down 25. I wasn't monitoring the Equifax at the time BUT that probably went down somewhere in the same range.

@bigcee6374 4 жыл бұрын

great video learned alot thank you sir

@sugarbear1225 3 жыл бұрын

Great detailed explanation of this subject?

@misterb6416 2 жыл бұрын

It is really ridiculous that a credit inquiry can cost you up to 15 points. Also, they way they figure credit history I don't like. Lastly, "wow, you got an auto loan, made all the payments on time until it was paid off! We are going to reward you by dropping your credit score by 30 points!"

@thefpvlife7785 2 жыл бұрын

Agree .. I never understood. someone just looks at your file and you get dinged. The bank is helping the bank and not people.

@salbarbosa2247 2 жыл бұрын

Great informative video. Thanks Adam!

@vegasvampire1 3 жыл бұрын

Great content! Thank you!

@shortyshorty1216 3 жыл бұрын

Great vid 👍 thanks! I would like to ask you.. could you do a vid on how a car loan might affect you're credit score via a co-signer? Thanks!

@andrewvegas200 4 жыл бұрын

Great Video I learned a lot from watching this.

@jerrycaughron7378 3 жыл бұрын

Excellent analysis!.

@kingsboy1828 3 жыл бұрын

good video...packed with good advice in 12 min....thanks

@ProudMoney 3 жыл бұрын

Thanks, that is very kind!

@porscha1563 3 жыл бұрын

Wow! Excellent video!

@Playboy_Pee 2 жыл бұрын

The credit system is going to incentivize you, because the more interest that is paid? Means more money is created in the system (i.e. growth). So, yes, it would make sense to merely pay the loan balance down to circumvent the interest charges wile maintaining a healthy account.

@chassidywebdesign3672 2 жыл бұрын

Thank you!

@masterbrice 3 жыл бұрын

I didn't realize I took out a consumer finance loan to pay for my car and even though I'm making on time payments, it's hurting my credit because lenders do not like to see that reported on your credit report.

@simoncquach 3 жыл бұрын

My score dropped 40 pts after my car loan but went back up 40 pts the next month.

@doral07 3 жыл бұрын

Same thing happened to me

@JesusisLORD77778 3 жыл бұрын

Was this your first car? Want to get my first car loan and a house a short time later. A fast rebound would be sweet

@mrgus1 3 жыл бұрын

How long credit history did u have? Any prior loans? May I ask roughly what your score was at the time?

@simoncquach 3 жыл бұрын

@@mrgus1 I have a 10+ yr credit history. Mtg & auto loan. My cs at the time was 760+ after the auto loan went down to 720. But it rebounded back up after the 1st month.

@DaBeezKneez 2 жыл бұрын

My score plummeted after i paid off my car. And when I tried to get a loan for another reason I was denied. But I was approved for a credit card for 10k. So dumb af.

@1jicks 4 жыл бұрын

From experience my first auto loan actually shot up my credit score about 20pts. I was also advised if I wanted to get a credit card to wait 6 months-1year to apply

@nickg2316 Жыл бұрын

Thank you !!! By the way I went to go apply for a car loan over at Toyota and it went down exactly how you explained it !! You sure know your stuff man !!

@stuckhere14 4 жыл бұрын

Just got a car this weekend for the wife. I'm interested to see how this hits my score. Plus I'll be paying off mine this summer. I'll get hit with both ends of the process.

@likeskittys 4 жыл бұрын

You can also do a video about personal loans, would be almost the same, but I'm sure people will also find it useful. :)

@larryivey8118 4 жыл бұрын

It caught me off guard when I paid my car off in 2014 that my score would drop it dropped about 26-27 points I wondered why but it did gradually go back up but not back to what it was at it's highest

@kempengland1917 4 жыл бұрын

good stuff, Adam

@mitchell.9632 3 жыл бұрын

Finally got around to this video.

@macse7en 2 жыл бұрын

Does anyone else think it’s really dumb how using your report to prove you can handle loans, HURTS your fking score?

@c.s.5177 4 жыл бұрын

I got a 60 month car loan. I'm making extra payments and getting that baby paid off as fast as I can!

@ryanboshell6124 4 жыл бұрын

Me too! Here in the uk!

@gerrylk9 2 жыл бұрын

Credit score companies are criminal.

@ndayembidi6781 Жыл бұрын

Ahahahahah

@ndayembidi6781 Жыл бұрын

Ahahahahah hahahahhahahahahahahaahahhaah

@bota20 4 жыл бұрын

Been waiting for a video on this.. Thank you, great video.

@nehemiahstewart 4 жыл бұрын

Me to!

@deenice9363 Жыл бұрын

Great vid

@mikedreamchaser2160 3 жыл бұрын

Awesome video

@rubensebastian5355 3 жыл бұрын

Excellent explanation!! If I want to sell my car loan to another person, what it can affect my credit score? Or what the best way to do it without affect my credit score? Thanks

@michaelconnolly6519 Жыл бұрын

I'm looking to get rid of a few credit cards, I just hace too many to manage without a spreadsheet and autopay. What will closing my NEWEST cards do for my Average Age of Accounts?

@kirkdunn1379 2 жыл бұрын

Exactly correct.....done this 4 times over last 4 yrs and everytime was about 30 pts.......even if I had the cash I would probably just leave a small balance to reap benefit

@shaunsmith8780 Жыл бұрын

Ok, so I have $822 left on my car, 4 years early on a 6 year loan. So I can just pay maybe $50 to stretch it out and stay on my credit? I'm trying to buy a house in about 11 months.

@kirkdunn1379 Жыл бұрын

@@shaunsmith8780 sure can, your contract is for 6 years and your way ahead....when you pay it off your score will take a hit....take $822 and divide it by 4 years you have left....or pay it off after you buy the house....

@aprilprothero1665 4 жыл бұрын

I love how doing a credit search hurts your score. A score that they make you have. I said screw it a long time ago. Credit scores dont probe how much money you have at your disposal. Its ridiculous that the idea of how much debt you have, the better score you get. But responsible people who pay cash have crappy scores. But it saves money in the long run when you dont pay interest.

@msanseverino78 4 жыл бұрын

Of course because they have no history of how they are with lent money. All it is is how good are you at paying people back . Credit can be a curse or a tool. It’s up to the individual.

@deez9805 4 жыл бұрын

All credit does is show your ability to pay debts. Greedy rich people are more likely to lend you lots of money if you are good at paying debts on time. If you’re smart and use it right, you could finesse for the rest of your life. Most people abuse it and think of it as “free money”. Nothing is free.

@AStanton1966 3 жыл бұрын

I have no debt and recently took out a small car loan to buy a new car as a convenience factor as well as give the dealer their "kickback." I was turned down by 2 different finance companies. The only one to give me a loan was my credit card company, where I maintain a zero balance. I paid the loan off in 30 days because I can't stand making payments.

@p51mustang24 3 жыл бұрын

Another one like me I see, never bothered with credit or debt, but starting to think about a mortgage in a couple years and realized my credit score is a big blank page. Only thing on there was my now paid off student loan, or at least I assume that shows up because my score was high enough to at least skip over needing to get a secured credit card.

@AStanton1966 3 жыл бұрын

@@p51mustang24 Yeah it stinks, the guys paying $1,000 a month for a car payment probably have a better credit score than someone like us. When you go for a mortgage, check out Dave Ramsey, he's a financial guy who hates to borrow money. His radio show has sponsors that will look at people who don't borrow a lot of money, but are a good risk otherwise.

@antoniogerald8390 3 жыл бұрын

Holman doesn’t request your credit check

@angelcontreras4339 3 жыл бұрын

what if its multiple inquiries from the same bank because errors were made on previous applications to that same bank. will it still be treated as one hit?

@DB6904. 16 күн бұрын

A lot of stuff going on right now in regards to upcoming credit card applications and car loans plus 1 motorcycle loan. So my questions are, will it really affect my chances to get a good rate on a car loan if I get a credit card a month before, And how much of a credit hit? Do you think it 'll you to have one car loan out and one motorcycle loan? Or will that just not be feasible to have the two loans out the same time? My credit score sitting around the 750 give or take. Thank you!

@polarbear353 4 жыл бұрын

I think you explained it very well. I took a hit when I bought my 330i through BMW Financial, but after only a few months it's already rebounding.

@andrewmartinez4262 3 жыл бұрын

How old are you? What was your down payment? How much do you pay a month? I'm looking to buy this car and would love any feedback!

@polarbear353 3 жыл бұрын

@@andrewmartinez4262 Credit score is high so I didn't need a down payment. Monthly note depends on various factors but if your credit is high you should be good to go.

@andrewmartinez4262 3 жыл бұрын

@@polarbear353 thank you for the feedback!

@nipul12 3 жыл бұрын

Very informative for me. Thanks for time and energy to educate needy like me. Subscribed to your channel. Hoping to learn good things from you.

@nipul12 3 жыл бұрын

I've seen dip of few points also, when I had a car loan and wanted to refinance my mortgage. I will see next month or so to see the combined impact.

@austinrobert8881 4 жыл бұрын

Got a car loan in December 2019. Hasn't changed my credit score much. Got one hard inquiry from the car dealership and one hard pull from my bank for the car loan. I do have 32 open credit cards and a long credit history. Credit Karma scores have hovered around 810 since purchasing the vehicle in December.

@fairarthur 4 жыл бұрын

Credit is designed to keep yourself in debt 🤦😜

@brandoncaldwell95 4 жыл бұрын

The large number of credit lines help save you from the hard hits. Mine dropped 40points. Im not too concerned as even after 2 years the number has increased but not to where it was. I have only 2 lines of credit being pulled currently which contributed to it. Fixing to have another here soon if i play the fcard right to where itll pay for itself and more.

@jonnjonnzz0111 3 жыл бұрын

Credit Karma is just your Vantage score and not your FICO score.

@austinrobert8881 3 жыл бұрын

@@jonnjonnzz0111 I never said fico score. I said my credit karma score 😉

@danielsellars3353 4 жыл бұрын

Pay off your loan..."We don't know how much you can handle anymore"....uhhh I can handle 250-500$ a month MORE than 2 seconds ago when I still had a payment, wtf u mean? They expecting me to pay off my loan and then quit my job? Credit system is "Reee" AF.

@michaelharrison6547 3 жыл бұрын

Multiple inquiries counting as one may not be accurate. I got hit with a shotgun blast aka multiple inquiries from a dealer and got hir with 5 inquiries at 3pts a piece. Have your own financing before you go to the dealee

@Floof_Factory 3 жыл бұрын

What if I get a car loan for a couple thousand and pay it over a 70 month period. Sure you pay a couple hundred in interest but then you artificially increase your score. And when you pay it off, you prove that you can handle a loan for future which will help towards future loans.

@regulus6773 3 жыл бұрын

What about when you refinance?

@robertscott305 2 жыл бұрын

The banks want you to be a consumer a good new. That's how they make money I pay off my car loans early and yes I take a hit in my credit score when I do it. The only thing I can come up with is because the banks feel you ripped them off because the interest on your loan is based on what you owe and it is compounded daily. P S you can save a lot of money by doing it

@jollama 2 жыл бұрын

Idk what “a good new” is

@thefpvlife7785 2 жыл бұрын

yes banks are only helping the credit bureau and not the consumer.

@robertscott305 2 жыл бұрын

@@thefpvlife7785 banks are out to make money.

@robertscott305 2 жыл бұрын

@@thefpvlife7785 and don't get me wrong I don't get up everyday not to make money so I understand that. But credit score are designed to keep you buying things on credit . If you pay cash for everything you buy and pay all your bills on time gas, electric, phone your credit score will drop

@revolutionaryhippies6972 2 жыл бұрын

What about paying it off early

@abel.morelos 4 жыл бұрын

Hey Adam! I know it's not directly related to this video, but it's close enough...in regards to refinancing a car loan, is a 1% decrease worth the hassle? I am more than halfway into paying off my car and didn't really understand refinancing until recently. I used an online calculator to compare and at this point, it doesn't look like the savings are huge. Current car loan is at 4% and I was pre-approved for a 2.95% loan. A factor affecting my decision is rental applications in the coming month where they will most likely check my credit score. Thanks!

@spiffanator 4 жыл бұрын

2:39 ish and on. Well for me, I took a big hit with my First car loan. I got 4 hard pulls and it DID affect my credit. Just putting that out there. note that was over a 2 day period

@TheMarcusEdits 4 жыл бұрын

Yea same

@darrylpolite8722 4 жыл бұрын

Always use your personal bank or credit union if you can. This will only be 1 hard pull versus multiple pulls.

@abdulrahmonolabode2349 4 жыл бұрын

If you are looking for fast credit score increase I would advise you purchase some good primary and AU tradelines which is guaranteed to get you 120-140 points ... I purchased mine from Credit Patch-Up LLC and my score improved in just within a week ... I now score an excellent 772 all thanks to their aged tradelines ( Tradelines@creditpatchup .com)

@Paparazzionsite 4 жыл бұрын

I have a friend that went with dealership and had over 12 hard inquiries. I told him to call each bank and dispute and request removal of those inquiries. He didn't authorize all of them to do that...no wet signature authorization

@jerrycaughron7378 2 жыл бұрын

Excellent review!.

@ItsShayDay 4 жыл бұрын

Great video, very helpful. Does this apply to both financed and leased car options?

@dirtysanchez4753 4 жыл бұрын

Hi Shaina😊......Scott

@darrylpolite8722 4 жыл бұрын

Yes this will apply to both leasing and financing.

@garygray8825 3 жыл бұрын

I have 3 car loans and I just paid one off... will I still get a hit since I still have that same loan type out??

@ygbodybuilder3023 10 ай бұрын

Ok so I'm going through my credit union for credit cards and auto loan sense it's all one hard Inquiry. Let's say I got approved for a car loan how long is that good for?

@daggergblue 2 жыл бұрын

Weird, I took out an auto loan and my score jumped to the positive, quite significantly.

@UncleRuckus7600 2 жыл бұрын

It will only go down at first if you already ran your credit for that year. You are allowed 1 free credit report every year. So you getting a loan for the first time that year will not bring it down at all

@unknownstudio2023 2 жыл бұрын

your very smart. i subscribed

@ProudMoney 2 жыл бұрын

Thank you!

@jollama 2 жыл бұрын

*you’re

@pasha5534 3 жыл бұрын

So true...i just lost 57 points bc of new car loan been added to my credit reports..🤬

@faridr3134 3 жыл бұрын

thank you for your great videos. I have this important question in regards to account age. er all know when a credit line is opened, it is going to negatively affect the credit history age and subsequently it will lower the credit score. my question is, if the same new credit line (for example a credit card) is closed let's say 3 months after it was opened, would credit history bounce back to it was? because that new credit line with 3 months age is gone now. basically my question would be, is it helpful to close a credit line if it is not too old? Thank you

@ProudMoney 3 жыл бұрын

it stays on your credit report even if you close it, so you can't escape it just by closing it.

@faridr3134 3 жыл бұрын

@@ProudMoney oh I did not know that! no wonder my score is not going up much despite of great payment history and very low utilization. Thanks for clearing that up

@elmiguel1703 2 күн бұрын

I have a question if someone could answer I have between 700 and 720 I have a lease with Toyota for 36 months I just made my 13 payment and I am in the market for a second lease should it be a concern?

@7deadbunny 2 жыл бұрын

Is there a way to loan money to myself in any way like from a retirement account and make payments back? Would this work the same as the car loan?

@Smra836 2 жыл бұрын

There is a program called self lender. It’s similar. I hope that helps

@tedlang6770 2 жыл бұрын

Great information. I have a question: We just finished paying off a car loan. It was about 630 a month and was for 5 years. it was hard, that's like an exotic car loan when it was really for a Chevy Malibu PLUS a car that crapped out of warranty which we had to eat and finish paying. it got lumped into one through the dealer. We had a lot of collection calls and a tow truck came to pull it for repo but we managed to somehow pay the late payment and it was called off. Now my question... how long will my credit take to go from fair or whatever they call it to Good where my APR on any new car will not be crazy high like 15%? thx!

@Bugger22 Жыл бұрын

Here’s something that helped the last time I purchased a car: When I received the first payment notice, I paid four times the amount due, and continued to make monthly payments as scheduled. It helped to cut some of the interest, and also gave me a “cushion” in case I needed extra cash for something else and I could afford to “miss” a payment.

@porshiapierce775 Жыл бұрын

It’s important to note for anyone else reading this, if you pay more than your monthly payment then make sure you specify with your lender that the extra payment go towards the principal. Otherwise most will not do that.

@ralphlongmore5194 3 жыл бұрын

will your score increase as the car loan gets paid

@jordanteraza917 2 жыл бұрын

When applying for a mortgage loan is it better to have an auto loan or no auto loan? Less debt would mean better debt to income ratio right? Or is it solely based off credit score? Hope this makes sense thanks in advance!

@scarling9367 Жыл бұрын

Both play a factor. You can have a decent credit score, but poor debt to income. Had a house deal get tabled because of that. Lady had two cars in her name (a family member was making payments).

@leea3531 Жыл бұрын

I got hit 11 inquire from one Acura dealer . They ran it through 11 banks

@Justinn3923 7 ай бұрын

Yeah man that messed up mine. But I honestly as a 20 year old that just had his credit ruined by trying to pay college with CCs. And is just rebuilding. Im happy I was able to get a 25k car without a deadly apr and that’s something I thought I wouldn’t even get approved for or at least with the 10% that I did it at

@leea3531 7 ай бұрын

@@Justinn3923never take student loans and use one debt to pay off another . You’re young so you have time to build your credit . Perfect your credit and opportunities will come

@thefastforte2854 3 жыл бұрын

You are the best breakdown to the lowest denominator guy ever! " What have you done for me lately".....lol

@ProudMoney 3 жыл бұрын

that's no joke, though! 🙂

@thefastforte2854 3 жыл бұрын

BTW did hard inquire dispute on phone today with Experian. Removed on the spot.

@kittynyc27 4 жыл бұрын

Usually when you finish paying the loan, it decreases your score. I would rather pay for a car cash as long as it is affordable.

@brandoncaldwell95 4 жыл бұрын

I prefer comfortable, and practicality over affordable. Within reason of course. To why i have the vehicle i do. It falls into an ABC plan i have set forth. If i loose my current job, i can use the vehicle for money making in 2 different ways.

@abdulrahmonolabode2349 4 жыл бұрын

@uniqueswag8996 4 жыл бұрын

@@abdulrahmonolabode2349 All depends on a individuals credit file. If someone has collection's or charge-offs, that AU won't make much of a difference outside of years/ payment history.

@rubberman2006 4 жыл бұрын

Paid my car loan off early. My FICO score went from 848 to 841. That’s crap.

@jimmyboy1582 4 жыл бұрын

This is why i dont care about credit no more. Paid off a 5 year loan in 1 year the credit Gods were unhappy.

@darrylpolite8722 4 жыл бұрын

It will eventually recover and your score will go back up.

@robertfrederick4714 3 жыл бұрын

848 to 841? Tomato. Tomato

@ScottysBackYardBBQ 2 жыл бұрын

i die of old age before mine comes back lol

@mikey73love 4 жыл бұрын

Hi there, my question is...which is better to purchase a car, getting a unsecured personal loan from bank or go to dealership? Thx!

@darrylpolite8722 4 жыл бұрын

It's always better to go to your bank or Credit Union. This is because you know it will only be one pull and better interest rates. I would only recommend doing it at the dealership if they have really good specials like 0%.

@brandoncaldwell95 4 жыл бұрын

The intrest rates will go through the roof on an unsecured loan. That would be even if they cover you for the amount you want. At a 10k loan for me, it was around 8%. I purchased my vehicle through a dealer and was at a 5% till a refinance with my personal credit union to 3%. Over the years, 8% to 3% is thousands saved. Also, watch what your bank does. 1 know of a bank that want all intrest upfront and wont have it on the loan all at once. The bank i deal with shows intrest you will have paid at the end of the loan tacked to it already. This is how someone i know ended up upside down thousands on a vehicke where ive been right on resale value.

@buster89ish 2 жыл бұрын

Question I pay like 45 or 50 bux more every month does that help my credit at all? Just curious

@jollama 2 жыл бұрын

You’re not getting an answer

@omegaknight7 4 жыл бұрын

is it gonna be harder now to get per qualified for home loans with this covid 19 stuff going around

@stevenmiller7747 4 жыл бұрын

Sure is, at least in the near future. A year from now should be back to normal.

@TheTyson35 4 жыл бұрын

Great info on car loans .....👍🏾

@crystaltellez3780 4 жыл бұрын

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@hips1988 Жыл бұрын

It was 5 hits on my account not one

@meccamadyun1343 3 жыл бұрын

Unfortunately, multiple inquiries in one day count as one inquiry PER lender pull. I just purchased a vehicle in January and 8 different lenders ran my credit and each one hit my credit report and score. Now I have the cooties according to lenders and EVERYONE is turning me down (pre-approvals and pre-quals)

@johnnymichael1804 3 жыл бұрын

Sucks for you.

@dekonfrost7 3 жыл бұрын

Its exactly right

@dekonfrost7 3 жыл бұрын

Do a cfpb complaint on the ones that didn’t become an account

@rmg2419 2 жыл бұрын

So installment loans don't affect credit utilization? only credit cards do?

@ProudMoney 2 жыл бұрын

Mostly yes. Credit utilization is mainly for revolving credit like credit cards. Installment loans do improve your score as they are paid down, but they are not part of what is generally meant by credit utilization.

@delonteroberts1273 3 жыл бұрын

So i have a question for you man. I financed my first brand new car back in 2019. I'm thinking about selling it back to the dealer or maybe refinance to get a better interest rate. If i sell the car back to the dealer and it pays all of loan off or up to 1,000. What's the worst case scenario could happen to my credit history and score?

@antoniogerald8390 3 жыл бұрын

It depends on the dealership man

@magellanmax 2 жыл бұрын

The dealership will pay you more than the actual value of the car in this current chip shortage crisis. A lot of people are selling theirs back because the dealerships are marking up used cars by up to 30% from last year.

@delonteroberts1273 2 жыл бұрын

@@magellanmax that's what i keep hearing and thank you!

@stilliraise9201 2 жыл бұрын

Isn't not better we buy a car with a line of credit?

@endovisionz4338 2 жыл бұрын

Before getting my credit car loan I had a credit score of 780. Afterward, it dropped by 20 points. From the start, I wanted to pay off my car loan within 2 years. Didn't want to continue dealing with interest but also knew I need to extend it long enough to show I can manage such a loan. It's now been two years and my credit hasn't moved at all. Please know I don't leave anything on my credit cards when they are due and even pay half of the balance 15 days before the due date. What is it that has left my credit score stuck??

@abdourahmanendiaye3768 2 жыл бұрын

Dude we’re on the same page been almost 2 years paying my credit cards on time and my car but it hasn’t moved in the opposite it dropped

@jollama 2 жыл бұрын

You’re not getting an answer

@ccb6013 2 жыл бұрын

@@jollama Good grief, you're annoying.

@mustangecoboosthpp3869 Ай бұрын

Because FICO is a scam designed to keep you in debt always chasing that FICO score. Pay off your debts and save your money, stop giving your money in interest to banks and loan companies.

@erikwilson9498 Жыл бұрын

I am close to paying off my auto loan and am planning on buying another vehicle. Should I buy the new vehicle before I pay off the first one so my score wont have taken the score drop?

@mustangecoboosthpp3869 Ай бұрын

You should keep your current car, it will be paid off, that that money you were paying for the car payment and put it into the bank. Stop being a slave to car payments, it is not just the monthly car payment but you have to add in the maintenance costs and the insurance costs as well as your yearly registration fee. That is a lot of lost income all going to your car, if you can pay it off and save the car payment side of that in three or four years you can have a nice savings account and you can put a nice down payment plus either sell you old car or trade it in and you will be much better off.

@gurkamalpreetsingh7913 2 жыл бұрын

Hi proud money I pay off my Collections 2 years ago but I have still showing 7 closed accounts you think it’s bad for my credit

@jollama 2 жыл бұрын

You’re not getting an answer

@jamesreed422 2 жыл бұрын

I believe it goes away after 7 years, same as late payment records, but I could be wrong

@bunneenee5867 4 жыл бұрын

Im wondering if suddenly paying off the remainder car loan amount (let’s say $10000 left) in one lump sum will hurt my credit score more or paying it off in the remaining 24 months scheduled intervals? I’m not sure what to do as I’m trying to get a new car and wanting to trade in my current car in a paid off status. Please advise, thank you!

@aprilprothero1665 4 жыл бұрын

I paid mine off early and my score dropped 45 points. Because they want you to stay on the loan so companies make more money off your interest. The system is rigged. Pay it off in my opinion if you can. Then put away that payment for your next car. Try to pay cash next time. In the long run, you save thousands in interest. Also- beware that you dont have a penalty for paying it off early too. Because again, the system is rigged.

@brandoncaldwell95 4 жыл бұрын

Depends what you plan on doing. Paying off an being done? Paying off to purchase something else? If i were you, id look into purchasing something thatll give you a return. Before go8ng to buy, pay a good chunk, but least around 2 payments left. Buy the other item, and then pay off the car over the rest of the 2 payment. Wont be as hard of a hit, but will be a hit. Also, you credit will have hit from the other purchase, but no large loss as youre stepping into the next item thatll shoot it up.

@bunneenee5867 4 жыл бұрын

April Prothero thank you 😊

@bunneenee5867 4 жыл бұрын

Brandon Caldwell thank you 😊

@sunxnes 4 жыл бұрын

so does this mean I should get a 60 month car loan rather than 48 month so that it builds credit for longer time?

@jollyranch1026 2 жыл бұрын

get a 84 month loan

@Skykitten246 3 жыл бұрын

When I got my car on finance my score from 886 to 635 that’s so bullshit and not fair now it’s going back up slowly never missed a payment in my life I will say this the credit score is based to keep you in debt for the rest of your life better to save cash and buy everything yourself

@ndayembidi6781 Жыл бұрын

Ahahahahah hahahahahah

@mustangecoboosthpp3869 Ай бұрын

Exactly, FICO is a scam designed to keep you in debt, you become a slave to FICO always chasing that high credit score and you will always be in debt. Pay off your debt and save your money instead.

@preston_pss 4 жыл бұрын

Ok I have a car loan and I have perfect payment history !! My credit score is 721 and I’m moving to TX in 6 months and I need to apply for my first mortgage! But I’m in need of a Truck I have a friend who wants to buy my car for exactly what I owe this will pay off my $9k car and will give me the ability to purchase a truck I’m looking around $10-12k to spend on a used truck how will my credit be affected after I pay off my car get another car loan and 6 months later apply for a mortgage?! Please help I don’t want to make the wrong decision should I wait on paying off my car and getting a new Truck Loan or will I be fine ?

@a-baby9 4 жыл бұрын

Your score will go down after u pay off the car, down again after you finance another car. The points that you lost should bounce back in 3-6 months of on time payments. I would advise you to get pre approved for your mortgage before you pay off the car loan, just to get the best rate. Approvals are usually good for 120 days. In that 120 days you can close on a property with the rate they approved you for. If I were you I would first get pre approved, then sell the car, pay off the loan, purchase the truck, and close on the property all within 120 days. I think that’s the best route to take. Maybe hold off on paying off the car loan until you are 120 days away from closing on the property.

@crystaltellez3780 4 жыл бұрын

@remyschrader9286 4 жыл бұрын

Take the cash. Keep making payments. Get mortgage approval. Move in. THEN pay off the loan. (Put the cash in something that returns interest during the interim)

@tranquilityofsounds9651 2 жыл бұрын

Hi, how does refinancing effect credit report. My car payments are at 20 percent APR. Would my loan reflect the new balance to start, or will it say I'm still at 30 percent paid? I have had my car for 2 years with no late payments. Can I lower my interest rate while maintaining my loan started at 9000? Or will it show my now balance as loan starting point?

@parkerjones823 2 жыл бұрын

It will show it as a new loan but I would still definitely refinance that 20%

@teencred9430 Жыл бұрын

20% APR???? Definitely get that refinanced and get a lower interest rate ASAP! Remember, you're raising your credit score to help you save money too.

@SL-pg4dh 2 ай бұрын

20% is criminally insane. Who the hell takes this kind of loans. I bet in the end your accrued interests payments would surpass the actual cost of the car. This is insane

@whatdoiwant6709 3 жыл бұрын

would someone with no credit history (just received SSN) go for car loan?

@anthonycaruso6065 3 жыл бұрын

Its gonna take you a while to build your credit up. You will need to open a card but w no history may have to start with a secured card. Dont spend much money on it, open a card w like 300 bucks and just dont ever keep any more than like 10 or 20 bucks on it. Then find some family or friends with really good credit and have them add you to their accounts as authorized users. You will then benefit from the age of their accounts and their credit limits as far as utilization goes.....start there and then maybe get a regular credit card or two in your own name ( primary accounts ). Stay away from applying for a million cards. You dont want all those inquiries. Start w one secured card and find an authorized user. That will give you a huge boost right out the gate. Dont buy a car until your credit is good. They will rape you for a piece of junk. Horrible time to buy a car anyway w the chip shortage

@antoniogerald8390 3 жыл бұрын

It depends, I know a car dealership company that does dude

@shannongaines4421 4 жыл бұрын

Just paid off my car loan in April, credit dropped 78 points!!! Complete BS

@darrylpolite8722 4 жыл бұрын

It will eventually go back up.

@brandoncaldwell95 4 жыл бұрын

@@darrylpolite8722 if you buy something else

@yunga8305 3 жыл бұрын

@@brandoncaldwell95 I paid my car loan off because I want a newer car , will my score drop drastically since I just paid it off and affect the chances of the new loan I’m at 691 right now please let me know thanks

@toothybj 3 жыл бұрын

Go buy another car lol

@kfergus3662 3 ай бұрын

My credit score went up we got 2 cars

@luckyaf859 4 жыл бұрын

I'm pretty sure that if you goto the dealership and they try to get you multiple offers then you are going to have several hard inquiries on your report

@darrylpolite8722 4 жыл бұрын

You will definitely have multiple inquiries which will lower your score and depending on how many pulls, it can be bad because it can make it look like you're desperate for credit. I always recommend dealing with your personal bank or credit Union to buy a car and don't let the dealership pull anything.

@toms81162 4 жыл бұрын

@@darrylpolite8722 incorrect. As long as it is for a car, house, furniture, whatever it will lower it once and once only.

@brandoncaldwell95 4 жыл бұрын

@@toms81162 wrong. I had great credit 2 years ago. I bought a truck well withing my range. Since i dont have a large history, i was required a cosigner. The issue came as they ran it 10 times. This dropped my score by 40 points. I still havnt recovered the point value lost. However, the loan i did take is helping establish large credit so im not messed up about it. Also, the vehicle bought doubles as a money maker for a business venture.

@toms81162 4 жыл бұрын

@@brandoncaldwell95 sold cars for 15 yrs. You dealt with thieves. And the fact you are a sucker.

@abdulrahmonolabode2349 4 жыл бұрын

@shaunsmith8780 Жыл бұрын

I have a car loan from 2021 for 6 years. I've paid it down to $822 this month. I have 2 credit cards as well. I would like to buy a house next year. Is it best to see if I can stretch that $800 out for a year so my credit doesn't take a hit?

@DoorDashers791 3 жыл бұрын

Hard inquires are negative

@sunkistlbc Жыл бұрын

Credit agency and credit score is a scam. You are damn if you do and damn if you don’t. They like it if your are in perpetual debt. If you are free of debt you are seen as risky

@fgbtv3803 Жыл бұрын

Lmao truly smart people know how to use debt to escape taxes and make millions. It's easy.

@scarling9367 Жыл бұрын

They are and it is. Bit it does pay off to learn to play the game.

@mustangecoboosthpp3869 Ай бұрын

@@fgbtv3803 Many of those so-called smart people also end up going bankrupt and lose everything because they become buried in debt. Truly smart people avoid as much debt as they can.