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Posted in Auto Loans
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Question By
ericjgelbart

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Get an Auto Loan to strengthen credit long term?
Credit is about 800, but I have only ever had credit cards; never had a loan of any kind. Want to buy a house in 3-5 years and thought it would be helpful to have a different kind of account reported to my history. I have the cash to pay for the car in full, but wouldn't mind spending a little extra on financing if it would be helpful for my credit long term and save me even more on a mortgage? Is this realistic?

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In most cases, I wouldn't be expecting paying interest on a auto loan with scores of 800. Would it help with mortgage when you have open/closed auto loan on your report? That probably should be answer by mortgage underwriters. From credit scores, generally your score will take a dive when you paid off a auto/installment loan, so depends on the timing, when you are applying for mortgage and when auto loan been paid off? it potentially might have some negative influence.

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