Posted on: 17th Aug, 2011 11:00 pm
Hi there… I'm a member of a local credit union. I want to take out a loan from them on my car. The credit union told me that the rate would be close to 3%. When I last checked my credit score a few days back, it was showing 707. How will this secured loan from credit union affect my scores?
Hi J Cathy,
I personally feel that you are getting a good rate on that loan. if you secured a loan from a credit union, it won't affect your credit score in a negative way. If you make the payments on time, it will rather have a positive impact on your credit report which will help you raise your scores further. However, if you default on the payments and if the credit union reports that to the credit bureaus, then your credit score may be negatively affected.
Thanks,
Jerry
I personally feel that you are getting a good rate on that loan. if you secured a loan from a credit union, it won't affect your credit score in a negative way. If you make the payments on time, it will rather have a positive impact on your credit report which will help you raise your scores further. However, if you default on the payments and if the credit union reports that to the credit bureaus, then your credit score may be negatively affected.
Thanks,
Jerry
Your FICO scores will initially take a small hit simply because the credit union conducts a hard pull of your credit. That said, it will quickly bounce back and should continue to improve as you pay your auto loan on time. The addition o the auto loan to your credit history will also improve your credit mix, which should help give your FICO scores a boost as well.
>>When I last checked my credit score a few days back, it was showing 707.
Where'd you check your credit score at? Was it directly with the credit bureau?
Where'd you check your credit score at? Was it directly with the credit bureau?
