How Much Will Credit Score Improve After One Year of Paying on a Car Loan?

How much is a score in years

The credit application you fill out for a car loan can temporarily lower your credit score, usually by fewer than five points, according to the MyFICO website. After a year of paying your loan, this black mark will have disappeared, and your credit may improve if you have a history of on-time payments and have avoided taking on excess debt.

The most important factor in your credit score -- accounting for 35 percent of the total score -- is a history of timely payments. If you make payments on time every month, your credit score should go up. However, a single late payment can ding your credit, and if the loan is large, the timely payment history might not be enough to compensate for the increased debt load.

Your overall debt load is the second most important factor in your credit score, contributing to 30 percent of the total. If you take out a massive car loan or if you already have significant other debts, your car loan could actually harm your credit. However, if you quickly pay down the loan by paying it off or by paying more than the monthly minimum payments, you could still see an improvement in your score.

It's impossible to analyze the effect of any single credit item taken in isolation, because your credit score is the result of your entire credit history. Even if you make timely payments on a relatively small loan, taking out several other loans, missing payments on another loan or closing multiple credit accounts can cause your score to plummet. Consequently, it's wise to focus on ensuring each account remains up to date and in good standing.

There's no single number of points that a car payment or loan adds or subtracts from your credit score. Instead, your total score is a result of all the items on your report. If you only have one loan, then the payments you make will more significantly affect your score than if you have several loans and a handful of credit cards.

Van Thompson is an attorney and writer. A former martial arts instructor, he holds bachelor's degrees in music and computer science from Westchester University, and a juris doctor from Georgia State University. He is the recipient of numerous writing awards, including a 2009 CALI Legal Writing Award.


how much is a score in years

Think Your Grade Point Average Is Your Only Score That Matters?

Think again! There's another score that's important as you go through life. It's called a credit score. And whether you know it or not, someone is already keeping track.

In simplest terms, a credit score is a single number that helps lenders and others decide how likely you are to repay your debts. It is based on an analysis of the information in your credit report, which lists your debt and repayment history.

Credit scores are based solely on credit history and don't include in the calculation factors like race, religion, national origin, gender, age, education level or marital status.

Do you have any credit cards? A car loan? A student loan or bank loan in your name? A department store charge account? If you answered "yes,9quot; you likely have a credit report. If you have a credit report, then you likely have a credit score that goes with it.

Your credit score changes over time. Every time you apply for, use, make or miss a payment on a loan or credit card, you build another entry on your credit report - and raise or lower your credit score. More recent activity carries more weight.

WHAT GOES INTO A CREDIT SCORE?

Your credit score is based on several types of information contained in your credit report.

  • Your payment track record.
  • How long you've used credit.
  • How often you've applied for new credit and whether you've taken on new debt.
  • The types of credit you currently use, such as credit cards, retail accounts, installment loans, finance company accounts and mortgages.

HOW TO GET YOUR CREDIT SCORE AND MORE

Your Credit Score: For a fee, you can order your FICO ® credit score and learn more about your credit scoring by going to: www.myfico.com.

Higher credit scores can mean lower interest rates-and big cost savings-for buying big-ticket items such as cars. Here's an example. For a five-year, $20,000 car loan, a good credit score may get you a lower annual interest rate-say 8 percent. But if your credit score is low, your loan may cost you more-say a 14 percent interest rate. What's the difference? With the higher interest rate, you'll wind up paying about $3,600 ($60/month) in additional interest costs.

Your Credit Report: To obtain a copy of your credit report or to report errors, you can contact the three major credit repositories:

In some situations, such as when you've been denied credit, you can get your report for free. Otherwise, there may be a fee.

For more information about how you can successfully manage credit, go to www.freddiemac.com/creditsmart. CreditSmart SM is a new Freddie Mac educational program to help consumers use credit wisely.

For more information about credit, debt and savings, go to www.consumerfed.org, the web site for the Consumer Federation of America.

WHY DOES MY CREDIT SCORE MATTER RIGHT NOW?

Because your credit score can be a factor in some of the most important financial events of your life.

Buying a car or a home: Lenders may look at it before deciding whether you are a good risk for a car loan or home mortgage-or how much interest to charge you if you get the loan.

One recent study from Nellie Mae found that undergraduate students carry an average of almost $2,800 in credit card debt. If you owed that much on a card with an 18 percent interest rate, and paid $50 each month, you'd wind up paying a total of $6,154. Moreover, it would take you more than 10 years to pay off that debt.

Getting affordable credit when you need it: Credit card issuers use credit scores to help decide whether to approve your application for a new card and if you should get a low interest rate on that card.

Keeping credit affordable: Credit card issuers continue to look at your credit scores after they issue a credit card to you-they may raise your interest rate if your credit score gets significantly worse. Or, they may raise your credit limit if your credit score improves.

Renting an apartment: Landlords may check it before deciding whether to rent to you.

Phone and electric line set-up: Utility companies may check it before deciding whether you have to pay a deposit.

WHAT IS CONSIDERED A "GOOD9quot; CREDIT SCORE?

The higher the number, the better your credit score. FICO ® credit scores-developed by Fair, Isaac and Company, Inc., and today's most commonly used scoring system-can range from 300 to 850. Most people score in the 600s and 700s.

Other scoring systems may use different numerical scales, but most use similar methods and factors to determine scores.

HOW CAN I BUILD A STRONG CREDIT RECORD AND A GOOD CREDIT SCORE?

Establish a credit record. Open a credit account-such as a credit card-in your name, and use it wisely.

Meet Tina. Take a look at the ups and downs of Tina's credit score. Tina is a fictitious person, but what happens to her credit score is a realistic example. Tina has just arrived at college ready to take on a new life full of opportunities. She's got her money saved up for the semester, and thus far has never had a loan or a line of credit of her own. She signs up for a new credit card at the bookstore her first week at school, where they are giving away free T-shirts for every completed application.

Pay your bills consistently and on time. BEFORE the due date, pay as much as you can, but never less than the minimum amount due. Always follow the terms you agreed to when you opened the account.

Remember that a little late is bad - and a lot late is worse. If you miss the due date on a payment, send it as soon as possible-the late fees, interest penalties and harm to your credit score increase as the payment becomes more overdue.

"Maxing out" credit lines is never a good Idea. Use your credit sparingly and keep well within the credit limit on the account.

Pay off card balances instead of moving debt to other cards. Opening new accounts you don't really need can lead to more debt, and too many open accounts may lower your credit score.

Finally, check your credit report regularly to make sure it is error-free. You can do that by contacting any of the three major reporting agencies. (Phone numbers are on the back panel of this brochure.)


how much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How much is a score in years

How Much Is 'Four Score'?

Today's Snack: Eat 20 grapes, and sip a glass of milk in 20 sips.

Copy of the Gettysburg Address

from a reference book,

either printed out for each child or

projected onto a big screen

Scratch paper and pencil

There are many definitions of the word "score." One of them is "a group or set of 20."

Referring to 20 of something as a "score" dates back many centuries to the old Norse language. It is thought that Norwegian shepherds counted their sheep in groups of 20, and made a mark or notch called a "skor" on a stick to count a whole herd of sheep fairly quickly.

That grouping of 20 was Anglicized, or turned into the English language, as the word "score."

One of the most famous uses of the word "score" in that vein was the start of the most famous speech by probably the most beloved American president, Abraham Lincoln.

He gave the Gettysburg Address at a Civil War battlefield in Gettysburg, Pa., in November 1863, and wanted to start off on a formal, serious note since so many people had been killed.

So instead of saying that our nation was founded 87 years before that date, he said "four score and seven years ago."

If you multiply four times 20, you get 80, and adding 7, you get 87 years. That's the correct answer for the date on which he gave the speech, 1863, minus the date our nation was founded, 1776.

The Gettysburg Address is only 267 words long. Can you memorize it?

See if you can come up with the answer to this problem:


Retaking the GMAT: How much can you expect to improve your score

Retaking the GMAT: How much can you expect to improve your score

How much is a score in yearsIf you’re considering retaking the GMAT, you’re not alone. Nearly 20 percent of the thousands of GMATs proctored each year are given to people who have attempted the exam at least once before.

The reasons for trying again are many. Perhaps your first exam resulted in a score lower than you expected after months of studying and high marks on practice tests, or perhaps you hardly studied at all, expecting all along to take the test more than once.

Taking the test at least twice has become as much of a strategy as it is a necessity for many test takers, especially as many management programs will now aggregate your best scores across all your tests. Despite the commonality of taking multiple exams, questions remain about the advantages and gains of taking the GMAT more than once.

The good news for anyone contemplating taking the GMAT again is that most people do improve their scores. However this improvement is relatively minor. According to GMAC data, on their second GMAT, most testers increased their total score by an average of 33 points. A sizable 25 percent of these testers who took the GMAT a second time scored lower.

Furthermore, the amount of improvement made by re-testers has been shown to be inversely related to their original scores. In other words, the lower a person’s score on their first test, the greater the improvement they generally made on their second GMAT test, and conversely, the higher a person’s first GMAT score, the lower their average improvement was on a second test.

In the data, testers who scored well below average on their first test — a total GMAT score between 200 and 490 — increased their score by an average of 45 points on their second test. Contrast this with testers who scored in the top percentiles, between 700 and 800 points on their first GMAT: They only improved their total score by an average of 5 points on their second attempt. For everyone else who scored in the mid-range on their first GMAT, average improvements ranged from 33 points for those who scored in the 500s to 20 point improvements for those who scored in the 600s originally.

One reason for this drastic difference in average improvement is what the GMAC calls “baseline tests.” In some instances, students will take their first GMAT without studying, using the results as a baseline by which to gauge their abilities before studying and then taking the test again. Because of this, average improvements are likely biased, especially for lower first scores as they show more improvement than what may be reasonably expected by someone who studied for their first test.

Another factor in this trend is that improvement becomes more difficult the higher you score. While improving a low score may be straightforward — for example, improving time management or accounting for a significant gap in knowledge — improving a good score is more challenging. Answering difficult questions correctly takes a more nuanced understanding of the concepts and how the GMAT tests them.

These statistics may be disheartening by dashing your hopes for a dramatic improvement in your score, but for many people, taking the GMAT a second or third time still makes sense. There’s a decent chance that taking the GMAT again will result in a higher score, and depending on the competitiveness of your original score, even a modest gain can make a significant difference. Also the data says nothing about how the average tester prepares for a second or third GMAT exam. Time and time again, testers do make large increases in their GMAT score after revamping their study tactics.

However, if you scored 700 or above on your first test, your time may be better spent working on your application. Unless you’re committed to making a large effort for what’s likely an inconsequential gain, fine tuning your admission essays and other application materials will better aid your admission chances.

Are you contemplating taking the GMAT again or have already taken it a few times? Share your experiences by leaving a comment below.


American Schools vs. the World: Expensive, Unequal, Bad at Math

What the latest results of an international test tell us about the state of education in the United States

The Quite Rational Basis for North Korea's Japan Overfly

Looking for Love in One of the World's Tiniest Religions

Joerg Sarbach/AP Photo

The U.S. education system is mediocre compared to the rest of the world, according to an international ranking of OECD countries.

More than half a million 15-year-olds around the world took the Programme for International Student Assessment in 2012. The test, which is administered every three years and focuses largely on math, but includes minor sections in science and reading, is often used as a snapshot of the global state of education. The results, published today, show the U.S. trailing behind educational powerhouses like Korea and Finland.

Not much has changed since 2000, when the U.S. scored along the OECD average in every subject: This year, the U.S. scores below average in math and ranks 17th among the 34 OECD countries. It scores close to the OECD average in science and reading and ranks 21st in science and 17th in reading.

Here are some other takeaways from the report:

The U.S. scored below the PISA math mean and ranks 26th out of the 34 OECD countries. The U.S. math score is not statistically different than the following countries: Norway, Portugal, Italy, Spain, Russian Federation, Slovak Republic, Lithuania, Sweden, and Hungary.

On average, 13 percent of students scored at the highest or second highest level on the PISA test, making them “top performers.” Fifty-five percent of students in Shanghai-China were considered top performers, while only nine percent of American students were.

One in four U.S. students did not reach the PISA baseline level 2 of mathematics proficiency. At this level, “students begin to demonstrate the skills that will enable them to participate effectively and productively in life,” according to the PISA report.

Even the top students in the United States are behind: This year, the PISA report offered regional scores for Massachusetts, Connecticut, and Florida. Massachusetts, which is a high-achieving U.S. state and which averaged above the national PISA score, is still two years of formal schooling behind Shanghai.

The U.S. ranks fifth in spending per student. Only Austria, Luxembourg, Norway, and Switzerland spend more per student. To put this in context: the Slovak Republic, which scores similarly to the U.S., spends $53,000 per student. The U.S. spends $115,000. The PISA report notes that, among OECD countries, “higher expenditure on education is not highly predictive of better mathematics scores in PISA.”

Socio-Economic Class Plays a Larger Role in the U.S. Than in Other Countries

Fifteen percent of the American score variation is explained by socio-economic differences between students. Less than 10 percent of score variation in Finland, Hong Kong, Japan, and Norway is due to socio-economic differences.

The U.S. also has a lower than average number of “resilient students,” which PISA defines as “students who are among the 25 percent most socio-economically disadvantaged students but perform much better than would be predicted by their socio-economic class.” On average, seven percent of students are considered resilient. Thirteen percent of of students in Korea, Hong Kong, Macao-China, Shanghai-China, Singapore, and Vietnam are “resilient.”

Parts of China, Singapore, Japan, Korea, and Liechtenstein topped the rankings for math, reading, and science. Finland, which is often pointed to as an example of an excellent school system, continued to perform well. However, the country dropped 2.8 points in math, 1.7 points in reading, and three points in science in “annualized changes in score points,” which are the “average annual change in PISA score points since the country’s earliest participation in PISA.”

The biggest annualized score improvements came from Brazil, Tunisia, Mexico, Turkey, and Portugal. Italy, Poland, and Germany also showed gains since 2003.

Click for larger image of chart

How seriously should we take these dismal findings? Educators around the world have called for tempered reactions to the PISA scores and questioned the usefulness of the tests. Nevertheless, this year’s report—and the United States’ poor math results—may be worth paying attention to for at least one reason. A 2011 study found that PISA scores are an economic indicator: rising scores are a good sign that a country’s economy will grow as well.

The 87-year-old labor leader who fought with Cesar Chavez says grassroots organizing is still effective.

  • How much is a score in years Jasu Hu

More comfortable online than out partying, post-Millennials are safer, physically, than adolescents have ever been. But they’re on the brink of a mental-health crisis.

O ne day last summer, around noon, I called Athena, a 13-year-old who lives in Houston, Texas. She answered her phone—she’s had an iPhone since she was 11—sounding as if she’d just woken up. We chatted about her favorite songs and TV shows, and I asked her what she likes to do with her friends. “We go to the mall,” she said. “Do your parents drop you off?,” I asked, recalling my own middle-school days, in the 1980s, when I’d enjoy a few parent-free hours shopping with my friends. “No—I go with my family,” she replied. “We’ll go with my mom and brothers and walk a little behind them. I just have to tell my mom where we’re going. I have to check in every hour or every 30 minutes.”

Those mall trips are infrequent—about once a month. More often, Athena and her friends spend time together on their phones, unchaperoned. Unlike the teens of my generation, who might have spent an evening tying up the family landline with gossip, they talk on Snapchat, the smartphone app that allows users to send pictures and videos that quickly disappear. They make sure to keep up their Snapstreaks, which show how many days in a row they have Snapchatted with each other. Sometimes they save screenshots of particularly ridiculous pictures of friends. “It’s good blackmail,” Athena said. (Because she’s a minor, I’m not using her real name.) She told me she’d spent most of the summer hanging out alone in her room with her phone. That’s just the way her generation is, she said. “We didn’t have a choice to know any life without iPads or iPhones. I think we like our phones more than we like actual people.”

The Quite Rational Basis for North Korea's Japan Overfly

With each new missile test, Pyongyang shakes Tokyo’s confidence in Washington, while accruing valuable data on its own capabilities.

This week, North Korea launched a missile designed to carry what it has described as a “large-sized, heavy nuclear warhead” over Japan. Following the launch, North Korea made clear its intentions for future tests. Kim Jong Un called for “more ballistic rocket launching drills with the Pacific as a target,” according to a paraphrase of his order by North Korean state-run media. That’s an important first, and represents North Korea’s single-most provocative ballistic missile test since it began testing its first-generation Scuds in the 1980s.

For observers of North Korea’s ballistic-missile program, the spate of long-range missile system tests over the past 30 months comes as no surprise. If there was a surprise, it’s the rate at which Pyongyang has been crossing various technical milestones. Over a matter of months, North Korea has shown off new high-performance missiles that will eventually form the core of its burgeoning nuclear forces—Kim Jong Un’s ultimate insurance policy against the fate of Saddam Hussein and Muammar Qaddafi.

Astronomers have found the stars responsible for an explosion recorded by Korean astronomers in 1437 A.D.

On the night of March 11, 1437 A.D., in what is now modern-day Seoul, a new star appeared in the sky, seemingly out of nowhere. The newcomer shone for 14 days before fading into the darkness. Korean astronomers noted the mysterious star and its brief stint in the sky in their records. Centuries later, modern astronomers studying these records determined that what the Koreans had seen was a cosmic explosion called a nova. Novae occur in two-star systems, when a dead star, known as a white dwarf, starts eating away at its companion, a star like our sun. The white dwarf slowly builds a layer of hydrogen stolen from the other star over tens of thousands of years, and then ejects it all at once, producing an eruption of light 300,000 times brighter than the sun that can last for weeks.

The nation’s current post-truth moment is the ultimate expression of mind-sets that have made America exceptional throughout its history.

When did America become untethered from reality?

I first noticed our national lurch toward fantasy in 2004, after President George W. Bush’s political mastermind, Karl Rove, came up with the remarkable phrase reality-based community. People in “the reality-based community,” he told a reporter, “believe that solutions emerge from your judicious study of discernible reality … That’s not the way the world really works anymore.” A year later, The Colbert Report went on the air. In the first few minutes of the first episode, Stephen Colbert, playing his right-wing-populist commentator character, performed a feature called “The Word.” His first selection: truthiness. “Now, I’m sure some of the ‘word police,’ the ‘wordinistas’ over at Webster’s, are gonna say, ‘Hey, that’s not a word!’ Well, anybody who knows me knows that I’m no fan of dictionaries or reference books.

Looking for Love in One of the World's Tiniest Religions

Think modern dating is tough? Try hunting for a husband or wife in the Druze community—adherents are forbidden from marrying outside of the faith.

“It’s a question people ask. I’ve been asked it myself. Are you only marrying this person because he happens to be Druze?” Fatin Harfouch tells me from her armchair in the lobby of the Crowne Plaza Hotel in the suburbs of Philadelphia.

Harfouch is 23 years old with green-blue eyes, lightly freckled skin, and long, dark hair. On her left hand she wears a big diamond engagement ring. On her right wrist she wears a multi-colored beaded bracelet: green, red, yellow, blue, and white—the colors of the Druze star. We’re at one of the regional conventions that supplement the annual National Druze Convention, organized by the American Druze Society. Druze is a tiny Arab religion that originated in the Middle East 1,000 years ago. There are just over 1 million adherents in the world, with large concentrations in Lebanon, Syria, and Israel and roughly 30,000 in the United States.

The Mystery of Why Japanese People Are Having So Few Babies

Many point to unromantic 20-somethings and women’s entry into the workforce, but an overlooked factor is the trouble young men have in finding steady, well-paid jobs.

TOKYO—Japan’s population is shrinking. For the first time since the government started keeping track more than a century ago, there were fewer than 1 million births last year, as the country’s population fell by more than 300,000 people. The blame has long been put on Japan’s young people, who are accused of not having enough sex, and on women, who, the narrative goes, put their careers before thoughts of getting married and having a family.

But there’s another, simpler explanation for the country’s low birth rate, one that has implications for the U.S.: Japan’s birth rate may be falling because there are fewer good opportunities for young people, and especially men, in the country’s economy. In a country where men are still widely expected to be breadwinners and support families, a lack of good jobs may be creating a class of men who don’t marry and have children because they—and their potential partners—know they can’t afford to.

It’s not because the water comes in. It’s because it is forced to leave again.

Floods cause greater property damage and more deaths than tornadoes or hurricanes. And Houston’s flood is truly a disaster of biblical proportions: The sky unloaded 9 trillion gallons of water on the city within two days, and much more might fall before Harvey dissipates, producing as much as 60 inches of rain.

Pictures of Harvey’s runoff are harrowing, with interstates turned to sturdy and mature rivers. From Katrina to Sandy, Rita to Tōhoku, it’s easier to imagine the flooding caused by storm surges wrought by hurricanes and tsunamis. In these cases, the flooding problem appears to be caused by water breaching shores, seawalls, or levees. Those examples reinforce the idea that flooding is a problem of keeping water out—either through fortunate avoidance or engineering foresight.

The U.K. has yet to leave the European Union, but some Europeans have started leaving the U.K.

When Britons voted to leave the European Union last year, they did so in part so they could have more control over European immigration into the United Kingdom—giving them the power to decide who can come live and study and in the U.K., and who can’t.

“We are not leaving the European Union only to give up control of immigration again,” Prime Minister Theresa May, whose Conservative party pledged to reduce overall immigration to below 100,000 per year, told fellow Tory lawmakers at their party’s conference in October. “We have voted to leave the European Union and become a fully independent, sovereign country. We will do what independent, sovereign countries do. We will decide for ourselves how we control immigration.”

Cyclic vomiting syndrome is on the rise among adults, and marijuana use may be partially to blame.

By all accounts, DARE—the acronym for Drug Abuse Resistance Education, an anti-drug education program founded in 1983 and, for a time, taught in up to 75 percent of American middle and high schools—doesn’t work: Students who’ve undergone the program are just as likely to use drugs as those who haven’t, and may be even more likely to drink or smoke cigarettes. That said: DARE definitely worked on me. As a high-school student the only thing I feared more than sex was drugs. Though I drank plenty in college, I refused to even be in the same room as marijuana (let alone everything else my classmates were doing). I held out until I was 24, and then I only smoked pot because a man hurt my feelings badly enough that I was willing to risk . death, or whatever else I thought was going to happen to me, in order not to feel them. But I was fine, like I have been fine every time I’ve smoked since, which hasn’t been that much, I swear. I stopped worrying, for the most part, until recently, when I first read about something called “cyclic vomiting syndrome,” and how smoking weed could cause it.

The Game of Thrones character joins a long line of fictional oracles: inscrutable, all-knowing, and troublesome to the narrative.

This post contains spoilers through Season 7, Episode 7 of Game of Thrones.

  • How much is a score in years

    From a moral standpoint, it makes the world worse.

  • How much is a score in years

    It doesn't have to be awkward. James Hamblin and Dr. Lauren Streicher, author of Love Sex Again, discuss how to bring up sexual issues with your doctor, partner, and friends.

  • How much is a score in years

    The director of the Southern Poverty Law Center’s Intelligence Project discusses an alarming new trend.