Question Details

Niko, Both Buyer and Seller in Orange County, CA

I am planning to buy a house .

Asked by Niko, Orange County, CA Fri Sep 28, 2007

with in the next four months but I am also planning to buy a car before that which I am planning to pay of in full before I buy the house. My question is, will this be good or bud for my FICO (my score is 795) score and does it have any advantages or disadvantages for my credit?Thank you

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Hi Niko. Congratulations on your excellent credit score. I am wondering why you would not just buy cash for the car to begin with. It's usually not a good idea to buy a car just before you buy a house, but that's because it changes your debt to income ratio. If you open up a credit line and then close it, that can also have an adverse effect on your credit score. If you use an existing credit card to buy the car and just pay off the credit card without closing the account, I don't think it will affect your credit score. It's the closing of credit lines that hurts. I would recommend that you speak to an experienced loan agent before you make the purchase just to make sure.
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0 votes Thank Flag Link Fri Sep 28, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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