Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Redsox911

1 Contribution
1 Person Helped
New auto loan takes 33 point hit to my TU & Equifax scores?
Wondering if adding a new auto loan should so drastically effect my TU & Equifax scores? Will they return to my previous score or will I need to wait until this loan is paid off. Feeling very disheartened here.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
935 Contributions
133 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Don't feel disheartened, you should be joyful, you got yourself a new car.   Yes, when you first take out loan, you'll see a drop in your credit score.  This was caused by two factors:  The first was the hard inquiry you encounted.  This was when they checked the credit.  Next was your Percentage owed to the actual loan amount.  Your credit score will increase as the loan balance decreases.  After a few months of on time payments, the points will start to return, probably at a rate of 2-3 per month or more or less.  Pay a little extra every month with your payment to help the principal go down.  This will help you pay it off faster and see the increases faster.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.