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I have been paying for a car now for 7 months. All payments are early or on time. I have also been approved for a secure credit card through the same lender of the auto loan. The car is far less than 15% of my income,( 5 yr loan) and the secure card has been paid on time or early, with at least 2x the minimum payment paid at a time. ( Now I just use the card for gas, and pay the balance as soon as the bill comes.) Where I’m going with all this information is: I would like to get a personal loan for a used motorcycle in the spring.. ( $ 4,000.oo loan MAX) and I also would like to get a mortgage ASAP. My credit score was mid 500s at the start of this adventure, with some old lingering medical bills on my report, no previous other debts, loans, or anything else. How long will it take to boost my credit enough for that sweet sweet home loan approval acceptance letter. THANKS! 😀

1 Thought on How fast does an auto loan build credit?
  1. Reply
    amy lynn
    December 12, 2012 at 10:17 pm

    To get approved for a home loan, you will need to go back and pay those old lingering medical bills and have those show up as paid on a credit report. If you have any outstanding, delinquent bills, you will have a harder time getting a good home loan, and that does include delinquent medical bills.

    Also, do not get the motorcycle until you have the home. Having two loans on vehicles (one car, one cycle) will hurt your attempts at getting a decent home.

    Next, save money. If you have between 5 and 10 percent to put down on a home, then you will be able to finance easier.

    It sounds like you could be ready to try for a home sometime during late 2013 if you also have at least one year on the same full time job. When you think your credit is fixed, go to your bank or to a realtor and get pre-approved for a home loan so that you will know what price range of home you should be looking at. They will tell you based on your income and your credit score what price they would be willing to loan you on a home.

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