Just bought a car and a house how long till my credit is good again?

Question

I bought a new car about a year ago, and about 4 months ago i bought a new home with my fiance. Im now looking to trade in my car and buy a new one. Is my credit going to be terrible and if so how long till it recovers?

thanks!!!

Answer 1

As long as you have kept up with your payments in a timely manner your credit should still be good.

Answer 2

Your credit score is based on how much available credit you have and your payment history.  For instance are all of your credit cards maxed out and do you have late payments?  If so your credit score is probably low and you will have difficulty getting loan.  I learned this when I went to refinance and found out that I did not have enough available credit.  

Answer 3

Credit rating is affected by the way you manage your bills, not your debts. If you always pay on time it will be fine.

What you need to worry about is you expenses, do they exceed you spending?& are you able to regularly save?

typo's lol.

1. total of your debts ie. it doesn't matter if you have $100,000 in loans, credit rating is about how well you manage your banking, bills etc.  things like power bills, credit cards & loan repayments.

2. meant- do your expenses exceed income

Answer 4

If you've been paying your bills on time, your credit should be just fine.  However, you may not get approved for a new car based on your debt to income ratio.

Answer 5

If you have made all your payments on time and are in good standing with your loans-- you should be ok.  Of course they will get better as you pay them off.

Answer 6

I bought a house last November and a car in March. My credit score was over 700 before all of that and it’s still over 700 now.  

Answer 7

Your credit could be "maxxed out" rather than "bad", if you are making the payments on time and don't have any other credit issues or major debt.

Provided that you get a decent trade-in allowance and/or are able to make a down payment, so that the new car loan isn't substantially more than the existing car loan, it should be a wash.  But since money is tighter now, all creditors could be looking closer and harder at each loan ap.  

Really the only way to know for sure is to try it & see what they say.  You will either get declined, get an interest rate higher than you got last time, or get accepted at a favorable rate.

Personally, I wouldn't buy a new vehicle right now with the economy and fuel prices so up in the air.  If the next President takes any drastic measures to save the ozone or prop up the US car manufacturers, it could completely change the state of the car market.  They could push hybrids and alternative fuels to the point that today's autos would be on the way to obolescence, so that it would be like buying Beta VCR's back before VHS became the "state of the art" product of choice.  

Consider "trading up" to a newer nicer pre-owned vehicle instead and eliminate the depreciation!