How much can 2 years of Perfect payments on my Auto loan raise my Credit Score?
I’ve had my car for 2 years now and its been set on auto draft since day one so its always been paid on time without an issue. How much does this raise my credit score? I also have a small credit card that has also been paid on time for 2 years now. I’ve always paid at least 5 times the minimum payment, never been over my limit, and always pay at least 2 weeks early. How much can this boost my credit score?
Paying early or extra does not boost your credit score, the only thing that does is paying on time. The longer your history gets, the better your credit rating. If you have anything detrimental on your credit report you’re fighting an uphill battle. Additionally, if your credit card is run up to greater than 30% of the limit that will lower your credit score too.
I don’t think any of us could begin to accurately calculate all of the values of the factors contributing to your score–especially since the formula for the FICO score is proprietary. You can try the FICO estimator here: http://www.myfico.com/FICOCreditScoreEstimator/ That gives you an estimate of your score, but it isn’t a guaranteed score. Mine was actually higher than the estimator thought.
December, 9th 2009 at 3:32 am
About 20-60 points. You also have to consider other factors like if there has been recent collection accounts, inquiries…etc.
If you pay more than the minimum payment it should have raised your score 80-100 points.
Hope this Could Be of Great Service!
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December, 9th 2009 at 3:58 am
Paying early or extra does not boost your credit score, the only thing that does is paying on time. The longer your history gets, the better your credit rating. If you have anything detrimental on your credit report you’re fighting an uphill battle. Additionally, if your credit card is run up to greater than 30% of the limit that will lower your credit score too.
I don’t think any of us could begin to accurately calculate all of the values of the factors contributing to your score–especially since the formula for the FICO score is proprietary. You can try the FICO estimator here: http://www.myfico.com/FICOCreditScoreEstimator/ That gives you an estimate of your score, but it isn’t a guaranteed score. Mine was actually higher than the estimator thought.
References :
December, 9th 2009 at 4:48 am
A monthly credit score changes monthly to about 10% per month, so you should be fine.The most important thing about a credit card is not to go crazy with it and it seems you’re always in control of your accounts. Keep up the good payment habits.
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Retired bill collector 35 years