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Credit Score questions - where's Rossman when you need him :P

Ryan

Ryan

Lifer
Well, the only thing I've ever done to build my credit is have a secured Visa for a little over a year. I always have paid the card off as soon as I've charged anything too it. Today I applied for a car loan on my $1200 a month salary (I deliver pizzas), and I was sure I was going to have to have to have my mom cosign and was going to get ripped an new arse hole when it comes to financing.

Turns out that I have a credit score of 695 (on a 1 to 800 scale, the higher the better), which my loan officer said was very good. She said that if my score was to be graded on just a normal school grade scale, I'd have an "A". Now, the only thing I've ever used to build up my credit is my secured visa, but I wasn't aware that a single card would help the score out that much :Q Needless to day, I got a 60 month load at 4.9% in my own name.

Will my score drop at all now that I have a car loan on my credit report? I'm planning on paying more than the minimum payment on my car, if I pay the loan off early with no late notices or missed payments, can I expect my score to jump much higher, or will it stay around the same level?

Thanks 🙂
 
Yes it will drop, by how much I'm honestly not sure but I don't think enough to put you out of the A grade category. Personally the last time I checked my credit score was when I got a loan myself for my car. It was somewhere around 770, which is pretty damn good. I guess the credit card companies notice this too because I typically get a credit card offer about once a week or more. So many offers for an AMEX Platinum, VISA gold, etc. its tempting and I did get one for CC for a new receiver, but that's it.
 
Originally posted by: amdskip
I'm no expert but IIRC, a paid off loan can pretty much only help your rating.
Click to expand...

I know that it'll help it, but how much is the question 🙂

NSA Freak: Yea, I don't think it'll initially drop enough to dip into the B's. THe cut for an A is 680, IIRC. I might end up with an A-.
 
I'd have called your score, on a scale up to 800 a B+ probably 🙂

Mine is low 700s on the typical 850 score, which is marginally above average I think. Eitherway, it's perfectly adequate to get any credit I need (I have only had a credit history for 2 years).

A car loan will lower it a bit off the bat, but eventually it will strengthen it. Once the car loan is paid off your score should be quite a bit higher.

You noticed what I noticed building mine, which is that a single credit card is more than adequate to build a great score. I went from a high 500s (after moving to the US) to low 700's in about 10 months with nothing but an unsecured $2500 card from MBNA. Now, my credit history was short, so I'd still not have qualified for a mortgage at that point, but scorewise - which is the most important thing - it's very easy to get a high score quickly, if you don't buggar things up. Mrsskoorb just got her first US card and I presume her score is well under 600 as well, but this time next year it will be in the 700s, placing her easily within reach of the good rates and approvals.
 
You know I do have a life (don't pay attention to my post count 😛 ).

Congrats!

You should consider applying for a regular unsecured cc with Chase, CitiBank, BOFA, or your local bank you'll prob be approved. If you are, close your current secured cc and get your deposit + interest refunded to you -or- just keep it, there's no harm in that.

Get the car loan, don't apply for anymore loans/credit cards for at least another 12 months, make sure to pay the minimum or more each month. Since it's a simple interest loan, everything extra you pay over the min monthly payment is applied towards principal reducing your loan term which reduces the total interest you paid which makes your wallet fatter 🙂

Repeat after me - Nissan Maxima and Gateway PC suck 🙂
 
Originally posted by: Skoorb
I'd have called your score, on a scale up to 800 a B+ probably 🙂

Mine is low 700s on the typical 850 score, which is marginally above average I think. Eitherway, it's perfectly adequate to get any credit I need (I have only had a credit history for 2 years).

A car loan will lower it a bit off the bat, but eventually it will strengthen it. Once the car loan is paid off your score should be quite a bit higher.

You noticed what I noticed building mine, which is that a single credit card is more than adequate to build a great score. I went from a high 500s (after moving to the US) to low 700's in about 10 months with nothing but an unsecured $2500 card from MBNA. Now, my credit history was short, so I'd still not have qualified for a mortgage at that point, but scorewise - which is the most important thing - it's very easy to get a high score quickly, if you don't buggar things up. Mrsskoorb just got her first US card and I presume her score is well under 600 as well, but this time next year it will be in the 700s, placing her easily within reach of the good rates and approvals.
Click to expand...

Way to rain on my parade!!!! :frown:

j/k

Cool, thanks for an informative response. You work at a bank, right? I plan on having the vehicle paid off at the 2 1/2 or 3 year mark, can't wait until then 🙂
 
Originally posted by: RossMAN
You know I do have a life (don't pay attention to my post count 😛 ).

Congrats!

You should consider applying for a regular unsecured cc with Chase, CitiBank, BOFA, or your local bank you'll prob be approved. If you are, close your current secured cc and get your deposit + interest refunded to you -or- just keep it, there's no harm in that.

Get the car loan, don't apply for anymore loans/credit cards for at least another 12 months, make sure to pay the minimum or more each month. Since it's a simple interest loan, everything extra you pay over the min monthly payment is applied towards principal reducing your loan term which reduces the total interest you paid which makes your wallet fatter 🙂

Repeat after me - Nissan Maxima and Gateway PC suck 🙂
Click to expand...

Cool - that was much quicker than I thought 😛 Thanks for the positive info.

I could close the secured account, didn't think of that. I'll check on getting an unsecured credit card from my credit union tomorrow. I don't plan on applying for any loans or other credit cards within the next year or so, so I should be safe with that.

But, yea, I'm starting to admit that Gateway does suck, at least more now than ever 😛 If you're talking about the current maxima, I agree again, it does suck!! :evil:
 
Originally posted by: rbloedow
Originally posted by: RossMAN
You know I do have a life (don't pay attention to my post count 😛 ).

Congrats!

You should consider applying for a regular unsecured cc with Chase, CitiBank, BOFA, or your local bank you'll prob be approved. If you are, close your current secured cc and get your deposit + interest refunded to you -or- just keep it, there's no harm in that.

Get the car loan, don't apply for anymore loans/credit cards for at least another 12 months, make sure to pay the minimum or more each month. Since it's a simple interest loan, everything extra you pay over the min monthly payment is applied towards principal reducing your loan term which reduces the total interest you paid which makes your wallet fatter 🙂

Repeat after me - Nissan Maxima and Gateway PC suck 🙂
Click to expand...

Cool - that was much quicker than I thought 😛 Thanks for the positive info.

I could close the secured account, didn't think of that. I'll check on getting an unsecured credit card from my credit union tomorrow. I don't plan on applying for any loans or other credit cards within the next year or so, so I should be safe with that.

But, yea, I'm starting to admit that Gateway does suck, at least more now than ever 😛 If you're talking about the current maxima, I agree again, it does suck!! :evil:
Click to expand...

So this loan you got ... how much, what rate, how long and what are your payments?

Is this a loan for your Maxima or another car?

I just love picking on you whenever it comes to Nissan Maxima's or Gateway PC's.

Just like I still give MWink crap about Dell laptops which he swore he would never ever buy again, what did he end up doing? 😛
 
Originally posted by: RossMAN
Originally posted by: rbloedow
Originally posted by: RossMAN
You know I do have a life (don't pay attention to my post count 😛 ).

Congrats!

You should consider applying for a regular unsecured cc with Chase, CitiBank, BOFA, or your local bank you'll prob be approved. If you are, close your current secured cc and get your deposit + interest refunded to you -or- just keep it, there's no harm in that.

Get the car loan, don't apply for anymore loans/credit cards for at least another 12 months, make sure to pay the minimum or more each month. Since it's a simple interest loan, everything extra you pay over the min monthly payment is applied towards principal reducing your loan term which reduces the total interest you paid which makes your wallet fatter 🙂

Repeat after me - Nissan Maxima and Gateway PC suck 🙂
Click to expand...

Cool - that was much quicker than I thought 😛 Thanks for the positive info.

I could close the secured account, didn't think of that. I'll check on getting an unsecured credit card from my credit union tomorrow. I don't plan on applying for any loans or other credit cards within the next year or so, so I should be safe with that.

But, yea, I'm starting to admit that Gateway does suck, at least more now than ever 😛 If you're talking about the current maxima, I agree again, it does suck!! :evil:
Click to expand...

So this loan you got ... how much, what rate, how long and what are your payments?

Is this a loan for your Maxima or another car?

I just love picking on you whenever it comes to Nissan Maxima's or Gateway PC's.

Just like I still give MWink crap about Dell laptops which he swore he would never ever buy again, what did he end up doing? 😛
Click to expand...

Actually, the loan is on a Scion xB. The rate is 4.9% for 60 months. The total price with tax, tag, and title came to $17,011.23. I'm putting $5000 down as my down payment, so the actual amount being financed is $12011.23 and my payments are around $240 per month. Sound good?
 
Originally posted by: RossMAN
That is ugly ass.

WTF did you get a Scion?
Click to expand...

LMAO, after all the sound advice and kudos on responsible handling of your credit, you screwed it up by telling him what an ugly car you got. LOL
 
Originally posted by: RossMAN
That is ugly ass.

WTF did you get a Scion?
Click to expand...

Well, I didn't go to the Toyota dealership to buy one. In fact, I would have agreed with your assesment up until 4 days ago. I walked in to look at the better looking Scion, the xA. But I figured, what the hell, I might as well look at the brick on wheels while I'm here 😛 Once I stepped inside, I way literally blown away by how much room it had, and how comfortable it was. The only thing that really bothered my was the front of the vehicle, but I can easily overlook it since the rest of the car is great. All options are power, it's got vehicle stability control, cruise control, a great MP3 headunit from Pioneer, lots of storage space, can easily fit four 6'+ adults, keyless entry, and much more. Al this for a base price near $14k.

I added floor mats, a cargo cover, fog lights, and a bumper guard for the back. The only other option was the automatic transmission, with was 800 bucks alone. The car will come delivered with these options already installed.

The design is starting to really grow on me. YOu'll be amazed at how many people look at it, and tell you it's the most hideous thing they've ever seen, yet they can't help buy smile when they see it. Hell, most people think it's a freakin' hybrid vehicle (don't ask me why, I don't get it either). It's a quirky little car that is value packed, and it something that people will always be asking me about. Also, it's much smaller than it appears - it's about as tall as a regular car. Seeing it in person is what really changed my opinion of it.
 
I'm surprised you even had a score at all with just one small credit card a little over a year old, much less a decent score (single A).

A couple of things to remember:
- Credit score is not everything with regards to credit. Many lenders have minimum tradeline (# of open accounts) requirements for example. Lucky for you, yours doesn't for new car loans.
- A secured installment loan, provided all payments are made on time, will NEVER hurt your credit score. They are not scored like revolving accounts (credit cards) where having too many or having too high a balance relative to your limits can bring your score down.
- Credit score is not everything 🙂 A car loan could get you declined for a later loan because the payment could upset your debt ratio.
 
Originally posted by: RossMAN
Originally posted by: rbloedow
Originally posted by: RossMAN
You know I do have a life (don't pay attention to my post count 😛 ).

Congrats!

You should consider applying for a regular unsecured cc with Chase, CitiBank, BOFA, or your local bank you'll prob be approved. If you are, close your current secured cc and get your deposit + interest refunded to you -or- just keep it, there's no harm in that.

Get the car loan, don't apply for anymore loans/credit cards for at least another 12 months, make sure to pay the minimum or more each month. Since it's a simple interest loan, everything extra you pay over the min monthly payment is applied towards principal reducing your loan term which reduces the total interest you paid which makes your wallet fatter 🙂

Repeat after me - Nissan Maxima and Gateway PC suck 🙂
Click to expand...

Cool - that was much quicker than I thought 😛 Thanks for the positive info.

I could close the secured account, didn't think of that. I'll check on getting an unsecured credit card from my credit union tomorrow. I don't plan on applying for any loans or other credit cards within the next year or so, so I should be safe with that.

But, yea, I'm starting to admit that Gateway does suck, at least more now than ever 😛 If you're talking about the current maxima, I agree again, it does suck!! :evil:
Click to expand...

So this loan you got ... how much, what rate, how long and what are your payments?

Is this a loan for your Maxima or another car?

I just love picking on you whenever it comes to Nissan Maxima's or Gateway PC's.

Just like I still give MWink crap about Dell laptops which he swore he would never ever buy again, what did he end up doing? 😛
Click to expand...

Two and a half years and you still remember that. 😛
 
Originally posted by: MWink
Originally posted by: RossMAN
Originally posted by: rbloedow
Originally posted by: RossMAN
You know I do have a life (don't pay attention to my post count 😛 ).

Congrats!

You should consider applying for a regular unsecured cc with Chase, CitiBank, BOFA, or your local bank you'll prob be approved. If you are, close your current secured cc and get your deposit + interest refunded to you -or- just keep it, there's no harm in that.

Get the car loan, don't apply for anymore loans/credit cards for at least another 12 months, make sure to pay the minimum or more each month. Since it's a simple interest loan, everything extra you pay over the min monthly payment is applied towards principal reducing your loan term which reduces the total interest you paid which makes your wallet fatter 🙂

Repeat after me - Nissan Maxima and Gateway PC suck 🙂
Click to expand...

Cool - that was much quicker than I thought 😛 Thanks for the positive info.

I could close the secured account, didn't think of that. I'll check on getting an unsecured credit card from my credit union tomorrow. I don't plan on applying for any loans or other credit cards within the next year or so, so I should be safe with that.

But, yea, I'm starting to admit that Gateway does suck, at least more now than ever 😛 If you're talking about the current maxima, I agree again, it does suck!! :evil:
Click to expand...

So this loan you got ... how much, what rate, how long and what are your payments?

Is this a loan for your Maxima or another car?

I just love picking on you whenever it comes to Nissan Maxima's or Gateway PC's.

Just like I still give MWink crap about Dell laptops which he swore he would never ever buy again, what did he end up doing? 😛
Click to expand...

Two and a half years and you still remember that. 😛
Click to expand...

Damn straight 🙂
 
Originally posted by: Mill
WTF? A Scion? Dude..........
Click to expand...

1.) I thought it was "Dude, you're getting a Scion" 😉

2.) "Mill"...I'm confused...who did you used to be? Millennium - ennium? 😛
 
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