What happens if your credit score gets lowered due to late auto payments, but then you pay off the auto loan?
In repairing a credit report score, an auto loan that had two late payments is then paid off in full, what happens to that part of the credit report? How long would it take to increase the credit score?
Since payment history contributes 35% towards the determination of FICO score, late payments would definitely take toll on it. However, there are few more things that would affect.
How much late were you on these loans?
Has your car been repossessed?
If you’re only thirty to sixty days behind the affects may get ebbed out once you become current again.
February, 2nd 2010 at 6:48 am
The damage has already been done and the late payments will remain on your credit report for 7 years. As they age, they will have less of an effect on your credit score.
The way to rebuild your credit score is to always make future payments on time but the process will be slow. The more on time payments that are made, the faster the credit score will increase.
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February, 2nd 2010 at 7:19 am
Having a good credit score (also known as a FICO score) during an economic downturn gives a person a huge advantage over someone with a poor FICO score. Typically, when the economy turns sour, there are bargains to be had, particularly in the real estate market , that are only available to people with large amounts of cash on hand (not likely), or people with good credit who can borrow and make bargain basement real estate investments. Applying for loans and other unsecured lines of credit credit just makes life a lot easier for you in a bad economy. So what can you do right now to improve your FICO score?
http://www.worldbestloans.com/creditscore.htm
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February, 2nd 2010 at 8:08 am
Since payment history contributes 35% towards the determination of FICO score, late payments would definitely take toll on it. However, there are few more things that would affect.
How much late were you on these loans?
Has your car been repossessed?
If you’re only thirty to sixty days behind the affects may get ebbed out once you become current again.
References :
February, 2nd 2010 at 8:43 am
Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one – credit-report-score.10001mb.com
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