I just recently bought a brand new vehicle, financed through a major finance company. I’ve had a car the past 3 years through a buy here pay here lot, but the payment history wasn’t being reported. How many payments with this new vehicle will it take to have a positive affect on my score? Also, not that I’m planning to be late, but how late would a payment need to be before it becomes a negative mark on my score?
I do have 3 credit cards as well, though I am carrying a high balance on those at the moment. I wanted to try to prequalify for a home in January, so I that’s why I asked the question. I planned on taking the next few months paying off/down the cards.
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{ 6 comments… read them below or add one }
It will have a positive effect after around 6-months. The best effect will be after 12 -payments have been made as agreed.
The answer to the second part of your question is any thing posted to your account over 30 days late will hurt.
It’s supposed to take 6 months of reporting before an account rates. Supposedly.
I don’t believe much of anything the bureaus tell us, though.
And late payments don’t count until they are 30 days past the due date.
Watch that closely. I’ve seen many instances where people paid late enough to get a late fee, and it made it onto their credit report.
Up to three months after the loan is paid in full on both.
To begin, every situation is a little different.
Secured loans such as a car have a much smaller positive effect on your credit score than insecured ones, Such as credit cards.
Keeping up with all the payments may over time raise your credit score 20, maybe 50 points.
How many credit cards you have, how long all the accounts have been open, what the balances are in relation to available credit, the number of inquiries. All of these have much more effect than a car loan.
Just keep making your payments and over time it will slowly but surely make a difference.
Every company is little different in the length of time it would take for them to report anything negative. The best bet would be to not play with fire. Just pay it!
Creditors will report you as paying late if you’re more than 30 days past due. Once reported to the credit reporting agencies, it will negatively impact your credit score. And it stays on there for a long time – I was 30 days late on a Macy’s charge account payment over 3 years ago, and it’s still showing on my credit report today. It sucks.
I can’t say for sure how long you’ll have to pay before you see an improvement in your credit score, but I’d say it will be at least 6 months. I believe most creditors report to the crediting reporting agencies every month, so after several months of timely payment, it will reflect positively on your credit score.
It will take approximately six months of steady on-time payments to make a difference. As the owner of http://www.1-800BadCredit.com that is what our lenders tell us. You will have a grace period on your payment contract, most lenders offer a 30 day period before it’s late.