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rjewett17

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Will getting a car loan for only $5000 impove my credit.
I have recently sold my home and paid off all my credit cards. I am buying a new car. I could pay cash but I am wondering if getting a small auto loan of only $5000 will help me get better credit so I can get a mortgage later.

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paid off credit cards NOT CLOSED correct don't close them and you'll be ok.....regardless if you take out loan or not your score will balance out in 6 months or so...becareful when apply for a auto loan when car dealerships run credit you can get hit for mulitiple inquires 5,6 all for one car search not uncommon thats 30points minus.....I strictly pay cash for a car to avoid it 

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Avoid getting the Hard inquiries

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Pre-Qualify for a loan with your bank of Credit Union for the loan. So you would be paying same as cash as far as the dealer is concerned.  Also a good negotiating tool

If you want to see if the dealer can get you a better deal, (many are offering 0% deals)  Carry a copy of your most recent credit report in with you and ask them if they can beat the deal you have with the Pre-Qualified loan.  Do not give permission to run your CR unless they say that they can qualify you for a better deal before hand.

Good luck

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