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

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#carloans #autoloans #creditscores

[@ProudMoney]

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[@danhealey5417]

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

[@agak61]

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

[@ggracias]

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

[@c.s.5177]

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

[@ryanboshell6124]

Me too! Here in the uk!

[@polarbear353]

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]

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]

@@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]

@@polarbear353 thank you for the feedback!

[@austinrobert8881]

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]

Credit is designed to keep yourself in debt 🤦😜

[@brandoncaldwell95]

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]

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

[@austinrobert8881]

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

[@gerrylk9]

Credit score companies are criminal.

[@ndayembidi6781]

Ahahahahah

[@ndayembidi6781]

Ahahahahah hahahahhahahahahahahaahahhaah

[@revolutionaryhippies6972]

What about paying it off early

[@danielsellars3353]

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.

[@stuckhere14]

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.

[@bigcee6374]

great video learned alot thank you sir

[@likeskittys]

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

[@jerrycaughron7378]

Excellent analysis!.

[@Skykitten246]

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]

Ahahahahah hahahahahah

[@mustangecoboosthpp3869]

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.

[@elmiguel1703]

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?

[@Playboy_Pee]

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.

[@faridr3134]

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]

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

[@faridr3134]

@@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

[@kempengland1917]

good stuff, Adam

[@Noobtubeguy]

My score went up a week ago to 718 then a month after I got my new car out it dropped 55 pts I’m now at 666 now😢

[@dragonknightofamiraka3636]

😈

[@TheYoungwet]

@@dragonknightofamiraka3636 🤣

[@thefpvlife7785]

fico is a racket

[@mikey73love]

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]

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]

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.

[@tedlang6770]

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!

[@ScottysBackYardBBQ]

i die of old age before mine comes back lol

[@bryontharp5790]

Nobody pays off car loans before they get a newer one

[@profitshares7033]

I did and still have the car. Fortunately for me that car had a 3.7% APR. Now that it's paid off I saved for a down payment for a newer model Toyota. Paid off car 2years ago and kept saving what I was paying.

[@mustangecoboosthpp3869]

We bought a 2023 Tacoma and paid it off in six months, we bought a 2021 Mustang and paid it off in 25 months so yes there are people who do pay off their vehicle loans early or on time. The Toyota dealer did the loan as a six year loan, it did not bother me because I knew in six months it would be paid off, the Ford dealer we did a 48 month loan and paid that one off in 25 months.

[@whatdoiwant6709]

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

[@anthonycaruso6065]

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]

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

[@teambeaterz]

in 6 months what ever points you loose you will get back

[@preston_pss]

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]

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]

Fun Fact: Not everything needs to be deleted off your credit report, some items just need updating and correction. With proper dispute techniques , they helped me and my father jump 170 points in 27 days. Yes during covid-19 results are a bit delayed, but if you allow creditfixbyandre to go 3-6 rounds on your credit after you spent 3-6 years damaging it.....it'll be worth it at the end, you can reach him on instagram @andrekharkiv, for quick help text or whatsapp [phone] and thank me later

[@remyschrader9286]

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)

[@curtmagee]

Capital One offered me a pre approved car loan. A good deal or no?

[@stephenlacher587]

I've used one with them, neither here nor there, just a loan. Being preapproved is nice.

[@everythingcrypto5577]

I would definitely apply and see your rate if you don't qualify at a local credit union, it's better knowing your rate then just heading into the dealer and they're gonna do everything they can to make money off of you in the finance dept. In fact, they make more money in the finance dept than the car profit.

[@buster89ish]

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

[@jollama]

You’re not getting an answer

[@ZooomaCW]

The way you explain all this makes the credit scoring system sound totally asinine. You work hard to pay off a $10,000 loan and your score goes down. It should eventually go back up but it almost sounds like - what's the point of a car loan if in the end your credit is hurt? Let's say you pay off your car and then within the next month or two you want to buy a house. But your score has gone DOWN!!! Unless your score is really high up there, that can't be good. You pay off your car loan and you are rewarded with a lower credit score? What?!?!?!?!

[@wizardt115]

He explains that it goes down because loaners want to know what's your next move with borrowed money. "We gave you all this money, you showed us that it can be paid off, but now what else are you going to do with your next loan?". He also mentions that you get credit mix on your report with shows borrowers you can handle multiple types of debt from a credit card and auto loan, in the long run this can look very appealing to loaners if you want a mortgage or business loan. Hope this helps.

[@ZooomaCW]

@@wizardt115 Muchos gracias. Encouraging.

[@DoorDashers791]

Hard inquires are negative

[@rasheedfraser5680]

Credit isn't inherently bad. People are impulsive. And they take on too much debt for things they dont need.

[@bionicwoman9884]

A car is needed in some parts of the country for travel.

[@rasheedfraser5680]

@@bionicwoman9884 that has nothing to do with taking on debt

[@bionicwoman9884]

@@rasheedfraser5680 this is about a car loan. Read the room.

[@chuckmckee2741]

Doe you even answer people’s questions.

[@prestigeworldwide5538]

Help with a question would be greatly appreciated. I just purchased a new car and total price was 24k. I put 13k down and was planning on making a few monthly payments then just paying it off. After watching the video. It seems like it may hurt me to do this since 2 previous accounts were closed and this one is new.I only have auto loan accounts in history with never missing a payment and never paying late. Will doing this hurt my score?

[@jay-qy7dv]

Please never finance car a car is a depreciating asset all you need is one credit card if you are trying to establish your credit history a car is considered to be a Term Loan so it's not a revolving account so it doesn't work better than a credit card and when you pay it off your credit score won't go up by that many points trust me I wasted a lot of my life playing the banks games

[@prestigeworldwide5538]

@@jay-qy7dv ok, I hear ya, I'm just going to pay it off. I was going to pay in full. But it is through Carvana and wanted to the bank to shake them down for the title. Carvana hasn't been very helpful with getting the titles to the customer in a timely fashion.

[@randydodson1570]

There are a few differences between car loans and the length of time you pay it off. The longer you take the better credit accumulation you acquire vs less time is like a double negative to your credit score the same thing happens when you open and close a credit card. New car loan for 5 years

[@teencred9430]

I wouldn't do too much trickery with your car loans. Here, it's really a question of how can you boost your "credit mix", one of the five main factors of the FICO score. If you've got a mortgage and some credit cards, I'd say you're in a good spot. It's a little more worrisome if you only have just the car loan and one credit card. That is a thin credit file and I'd say adding a few more credit cards would do the trick. As long as you can manage these additional cards, those accounts will strengthen your "credit mix".

[@sanauj15]

@@randydodson1570The issue with this is that the longer you are paying off your loan, the more interest you are paying. I think I’d rather save money than potentially boost my score.

[@GohanBurner]

I , for some reason, decided to get a car loan in an effort to conserve my 830 credit score. I didn't need the loan, and after 3 months I just want to pay it off. Is this going to lower my score drastically? Should I just keep making payments?

[@miggi002]

Keep making payments. I paid my car 2 years early just recently and my credit score went down 20 points.

[@wilokush7435]

Miggi 002. Really? I have a friend who just told me his credit jumped up into the 800s after he paid his car off 2 yrs early & that made me want to start making larger payments to do the same BUT Now you say you lost 20 pts wtf lol 😆 idk what to do anymore

[@miggi002]

@@wilokush7435 It all depends on what other "credits" you have. If you're making payments and don't have any payments anymore. (Just credit cards) your score will go down. So I got an installment loan and it help my credit score.

[@Drogos79]

So should I apply for new car loan before I pay off the old one? I don't want to trade it in....I want to sell it for cash

[@jollama]

You’re not getting an answer

[@nightstar265]

How long after you buy a new car should you consider into refinancing for a possible better IR

[@mikexcanxjerk]

Night Star A year

[@darrylpolite8722]

This depends on you and your situation. You can do it anywhere from 30 days on up to a year. When I helped my cousin with their credit, they were excited to get a car after their score went up 60 points. I thought their interest rate was high being at 6%. Since it wasn't reporting on their credit report yet, I advised to let it report and at least make 1 payment for that to report. After that their score went up another 29 points after 3 negative items were removed. They immediately went to their credit union and got a 1.79% interest rate and had a much better payment with a better extended warranty. The time to refinance all depends on you and your credit situation. If your credit has improved within that time after purchasing the car, go for it. If you have room for improvement, work on your credit a little more and then try refinancing once the situation is better with improved credit.

[@mikexcanxjerk]

Darryl Polite does credit union typically offer better extended warranty ?

[@brandoncaldwell95]

@@mikexcanxjerk depends. I personally dont buy into the extra warranty crap. This is where i saved thousands. I have a 6% that gone to a 3%. I waited a year to refinance to recoupe from the hard hits and my bank offering matched deals. I could have had my loan down to a 2%, but my budget wouldnt allow the requirements.

[@anthonykence9954]

Good information but too much rambling.

[@ProudMoney]

That's fair.

[@michaelreed7469]

Most every lender use FICO and inquires DON’T affect your score.

[@johnnybbop1]

Not true at all, it definitely affects your credit

[@dekonfrost7]

That window bullshit. Is total bullshit they are not treated as a single pull. Its bullshit. They tell you this bullshit to make sales.

[@michaelharrison6547]

Exactly what happened to me

[@YaniAmorX]

Hello so my current situation is I have $5k left on my car and basically maxed out my credit card of $10k and these are the only things on my credit due to me recently paying off my student loan. I’m currently in the market for a house but I am scared to pay off my car and credit card because then my credit will go down . My sure is pretty good but it can be better I would love at least a 800 or 788 like it was in the past is there any tips you could give me to help me grow my credit score ? I’m currently taking a hit bc of my credit card

[@ProudMoney]

I would pay off the credit card for sure. You are hurting your score by being maxed out and will hurt your chances of a mortgage with all that unpaid debt. car loan is not an issue as long as you have been making your payments.

[@YaniAmorX]

Thank you

[@MarkovianMan]

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

[@simoncquach]

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

[@doral07]

Same thing happened to me

[@JesusisLORD77778]

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]

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

[@simoncquach]

@@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]

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.

[@macse7en]

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

[@misterb6416]

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]

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

[@sunkistlbc]

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]

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

[@scarling9367]

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

[@mustangecoboosthpp3869]

@@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.

[@shannongaines4421]

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

[@darrylpolite8722]

It will eventually go back up.

[@brandoncaldwell95]

@@darrylpolite8722 if you buy something else

[@yunga8305]

@@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]

Go buy another car lol

[@robertscott305]

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]

Idk what “a good new” is

[@thefpvlife7785]

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

[@robertscott305]

@@thefpvlife7785 banks are out to make money.

[@robertscott305]

@@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

[@emmapeel4299]

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! ✅

[@brianlovelady6517]

Man . Buying a car with a loan sounds like trap

[@wyattpotter2103]

I couldn't agree more. Just over a year ago I brought a model 3 on a car loan to save money because my mustang I was spending anywhere from $500-750 a month on gas because I do food delivery used to work at Jimmy John's and now work at Papa John's. I'm going to have it paid off in less than 2 months but even though I got it at a 2.75% interest rate and my $623.66 payment was less than my gas sometimes and with the loan cash flow was similar to the mustang with no debt. Even though it worked out like that, it's not ever worth it I'm never taking a loan on anything ever again I will likely have to take a mortgage but I'm going to attempt to save cash for a cheap house to buy who knows that might not work out. I did it but car loans are not good what I should have done is kept the Mustang and focused on a different career instead I did that whole stupid thing to save money on gas. Even though my cash flow was similar I have had a lot of more stress from having a car payment. It's never worth it.

[@nathanieljackson7422]

1 thank yo so much for the info. 2 the whole system is a f*cking rip off

[@johnnymichael1804]

It really is.

[@rubberman2006]

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

[@jimmyboy1582]

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]

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

[@robertfrederick4714]

848 to 841? Tomato. Tomato

[@aprilprothero1665]

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]

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]

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.

[@ralphlongmore5194]

will your score increase as the car loan gets paid

[@sunxnes]

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]

get a 84 month loan

[@daggergblue]

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

[@UncleRuckus7600]

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

[@masterbrice]

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.

[@foreigncreations1793]

I paid off my car. Credit score drops 20 points 🤦🏻‍♂️

[@darrylpolite8722]

It will go back up and balance out. Just continue using good credit habits by paying your bills on time and having as much credit utilization as you can every month.

[@shortyshorty1216]

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!

[@bota20]

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

[@nehemiahstewart]

Me to!

[@michaelharrison6547]

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

[@pasha5534]

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

[@thefastforte2854]

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

[@ProudMoney]

that's no joke, though! 🙂

[@thefastforte2854]

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

[@kittynyc27]

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]

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]

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)

[@uniqueswag8996]

@@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.

[@AStanton1966]

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]

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]

@@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]

Holman doesn’t request your credit check

[@delonteroberts1273]

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]

It depends on the dealership man

[@magellanmax]

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]

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

[@erikwilson9498]

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]

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.

[@thefpvlife7785]

The bank is just helping the bank with these credit bureaus and not the people.

[@7deadbunny]

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]

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

[@Gabos_Parfums]

Fu(% credit all you need is cash is better to save up than to get credit

[@Jt37-b9n]

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]

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).

[@ygbodybuilder3023]

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?

[@bunneenee5867]

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]

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]

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]

April Prothero thank you 😊

[@bunneenee5867]

Brandon Caldwell thank you 😊

[@anthonyfletchersgdbrbyu5621]

great lesson, you really know what you are talking about

[@keisukeyoshida2839]

Exactly what I needed to hear. Thank you!

[@williebobo454]

You did a great job explaining, thanks

[@kirkdunn1379]

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]

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]

@@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....

[@gurkamalpreetsingh7913]

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]

You’re not getting an answer

[@jamesreed422]

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

[@stilliraise9201]

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

[@kfergus3662]

My credit score went up we got 2 cars

[@spiffanator]

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]

Yea same

[@darrylpolite8722]

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

[@abdulrahmonolabode2349]

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]

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

[@crow-vz5lx]

Financing a car is one of the most stupid things you can do. The value of all cars good down in value way down. You pay the interest If you don't pay interest. They hike up the price And you are on the line for 4-7 years. Paying on a depreciating asset. Its worth About half the value in about 5 ish years... Aaand you need full coverage insurance. Now, Imaging buying a scraper for a couple grand. Then you save for the 5-7 years cash. Then when you have about 20k -30 k you can buy the car you want cash . Oh and whenever things like the economy or covid happens and you own the car outright.. And you get laid off.. a car payment isnt one of your worries.

[@endovisionz4338]

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]

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]

You’re not getting an answer

[@ccb6013]

@@jollama Good grief, you're annoying.

[@mustangecoboosthpp3869]

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.

[@DB6904.]

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!

[@blake_8711]

Really helped me understand, thank you

[@unknownstudio2023]

your very smart. i subscribed

[@ProudMoney]

Thank you!

[@jollama]

*you’re

[@meccamadyun1343]

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]

Sucks for you.

[@dekonfrost7]

Its exactly right

[@dekonfrost7]

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

[@andrewvegas200]

Great Video I learned a lot from watching this.

[@michaelconnolly6519]

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?

[@leea3531]

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

[@Justinn3923]

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]

@@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

[@rosethornDesigns]

Is it illegal for a dealer to keep running your info after the first 30-45 days ????

[@EbenezerYiadom]

Rose Thorn it should

[@darrylpolite8722]

Yes, I would dispute this immediately. If you have authorization for them to run your credit on a specific date, this means you shouldn't have anything ran after 24 hours from your authorization. If anything ran after that given time, they need new authorization from you. I'm not sure what your state laws are on this but I highly recommend you dispute this with the dealership directly as unauthorized and ask for them to remove those inquires to make it easier. If not, you can dispute it with the credit bureaus as well. Inquires will stay on your credit for 2 years.

[@BEERLIGHTBROKER]

They get mad as hell when they lose the ability to steal your car.

[@AStanton1966]

They are no longer your master and you their slave.

[@tranquilityofsounds9651]

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]

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

[@teencred9430]

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]

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

[@salbarbosa2247]

Great informative video. Thanks Adam!

[@anacordero5108]

So buying a car to boost your credit score is not a good idea? If your credit score is new, buying a car help you to boost it ?

[@jollama]

You’re not getting an answer

[@1jicks]

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

[@kingsboy1828]

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

[@ProudMoney]

Thanks, that is very kind!

[@larryivey8118]

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

[@ItsShayDay]

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

[@dirtysanchez4753]

Hi Shaina😊......Scott

[@darrylpolite8722]

Yes this will apply to both leasing and financing.

[@Floof_Factory]

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.

[@floydbanks173]

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.