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Sloanedude

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Why are ON TIME Car loan and Equity loan payments useless for building credit?
I have had previous car loan payed off, a current car loan paid on time and a home equity loan that is on going for years all paid on time. However the negatives outweigh the positives. The car loans and home equity loans dwarf the total bad credit amounts 10X $ however they seem to do nothing to improve my score. additionally paying off one bad credit and adding a new card did nothing to improve my score it actually dropped it. Also what we see here as a score is much higher than what a creditor sees. For example a 615 Karma score equals 585 creditor score. This is really disappointing.

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Your car loan and your mortage are indeed helping your credit.   It goes into your on time payments.  They are not part of your Utilization which is a good thing considering the number of years it takes to pay.  As you make payments and the principal of the loan decreases, you'll see credit score increases over time.   The more you can add to your payment to drop the principal the better.   Just as when the loan is paid off, your score will drop as you no longer have that credit line although it will be a positive as being paid off.  Opening the new credit card to offset the that of a bad payment credit card did not erase the old credit card.   Presuming it is closed, only time (7 years) will erase that negativity.   The new cred card actually decreased your average age of accounts as well as gave you a hard hit.   Over time, as long as utilization is low and payments are timely, about 6-9 months and you will recover from the point where that card was opened.

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The "why" is what you need to figure out for yourself, there are plenty of informations literally at our fingertips, however vast majority of us don't bother take little bit of time to learn "why". Not saying we will ever learn everything we need to know about how credit score works, but we should have some basic knowledge about what makes credit scores tick, after all it affecting us on the daily and ongoing basis, isn't it to our benefit to learn about it?... 

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