• How much will this hurt my credit?

    My husband and I are in the process of purchasing a house. We have been pre-approved for a FHA loan. We have 4 bids in on houses, and one short sale contingency being reviewed by the bank. On Thursday, I was involved in a car accident. My car is totaled. Insurance will pay for the current value of my car, which will leave me anywhere between... show more
    My husband and I are in the process of purchasing a house. We have been pre-approved for a FHA loan. We have 4 bids in on houses, and one short sale contingency being reviewed by the bank. On Thursday, I was involved in a car accident. My car is totaled. Insurance will pay for the current value of my car, which will leave me anywhere between 1,000-2,000 upside down. I have been told that this will roll over into whatever car loan I get next. I am intent on keeping my payment the same (if not lower) than it was before, to keep my debt-to-income ratio the same. When I get a new car loan, it is going to pay off (and close) my current car loan account, plus I'll have to get my credit run to open a new loan account. My credit is good right now (Fico 2 is 711), and I don't want to do anything that will screw us out of getting a house. How much will this hurt my credit? Thanks in advance for any help you can offer. If there is a better category for me to post this in, please advise!
    5 answers · Credit · 9 years ago
  • Can I use an existing account?

    I purchased a new Ford in 2006, with absolutely no credit. They put me on a first time buyer's program, and Ford Motor Credit financed roughly the entire cost of the car. For the sake of the question, we'll say it was $17,000. Since then, I have made all of my payments on time, and have a good credit score (over 700 fico). On Thursday, I... show more
    I purchased a new Ford in 2006, with absolutely no credit. They put me on a first time buyer's program, and Ford Motor Credit financed roughly the entire cost of the car. For the sake of the question, we'll say it was $17,000. Since then, I have made all of my payments on time, and have a good credit score (over 700 fico). On Thursday, I was involved in an auto accident, and my car was totaled. Insurance is going to give me the value of the car, and it's looking like I'll be between $1,000-2,000 upside down. So here's my question: If I have a $17k credit line with Ford Motor Credit, can I use the line of credit in my currently open account to purchase another Ford? I've been told that my upside-down amount will roll into my new loan, and I'm totally okay with that. I am looking to purchase a pre-owned vehicle- will that change anything? My husband and I are currently in the process of purchasing a house, and we have already been pre-approved for a loan, so I'd really rather not close any accounts or open any new ones if it isn't absolutely necessary. Thanks in advance for your help. :)
    1 answer · Buying & Selling · 9 years ago