Question

How long does it take for a car loan to appear on your credit report?

My husband and I both need new cars. We have an average credit rating. Will the 1st car purchase (we will have a down pymnt) make it harder for the 2nd car loan (w/ $4000 down & trade in worth $8,000)? Do you need to wait a few months or could we purchase both in the same month?

7 years ago - 7 answers

Best Answer

Chosen by Asker

You are better off purchasing them both in the same month, preferrably on the same day.

I hate to say it, but someone else will...one dealership will be 100% unaware of the other loan and that will increase your chance of approval AND get you a better interest rate for both loans.

If you wait a few months, you risk getting denied and a higher interest rate.

If they question the inquiries, just say you've been shopping around.

Investers do this alot with houses...they'll purchase 2 or 3 in the same 2 or 3 week span, so they don't hit their DTI, especially if they are flips.

7 years ago

Other Answers

You might get a better deal on both cars if you buy them at the same time.

But the first car loan will impact your score. Do you really both NEED new cars or is it that you both WANT new cars. If you wait and save, you won't end up with two big car payments.

by bdancer222 - 7 years ago

Most creditors report to the bureau monthly so, it should show within 30 to 60 days depnding on when you made your purchase.

by outlawimmortal2 - 7 years ago

When you take out a new loan or debt (car, home mortgage. credit card) the info hits your credit report pretty fast, usually no later than the end of that month. Your credit report and FICO score is comprised of several factors kept highly secret and mysterious by the reporting agencies (Equifax, Experian, Transunion) that devise and report them to potential lenders.

But essentially, they look at payment history, amount of debt vs. credit available (on credit cards for example), employment stability, home ownership, events and public records (delinquincies, bankruptcies, liens). The lender will also take into account your income.

Having taken on new debt certainly cannot help your credit score, but the good news is that a change in any one the areas mentioned above only changes the overall rating by the weight that it measures into the score.

Tip: your credit report is available, by law, once a year from the credit reporting agencies. Check out equifax.com, experian.com, or transunion.com. For a fee, you can get all 3 at once and your FICO score. You can view it immediatel online! Go check it out and make sure it's correct too-it has a tool for disputing any false info or debts you already paid but still showing up.

Source(s)

by wisedrdave - 7 years ago

Different financing companies report credit at different intervals. Most report every 30 days. If they report every 30 days depending on when you get the loan compared to their reporting schedule it could take more than a month to see it appear.

Your credit score and debt to income ratio (debt divided by income) will determine your interest rate and the total loan you qualify for. Waiting really will not make a difference.

by t - 7 years ago

I have a 0% apr 72 month auto loan through chase, and they did'nt report for almost a year, so you just never know. If you both need new cars, either do it at the same time, or apply individually, you buy your car he buys his. Or if you do decide to be cosigners for each other, it should'nt hurt your credit that bad. Think about it what family DOES'NT have 2 car payments?

by donniebre - 7 years ago

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You also can grab bad credit car loan without keeping your asset as collateral, but you have to pay competitively higher interest rate. Hence-->you can take this loan at better rate, because competition among lender.You can reduce your interest rate after talking with the lender

by Anna K - 7 years ago