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Basic question....

Regular Contributor

Basic question....

Just a basic question that probally been asked but didnt see in forum title section.. so I got approved for auto refi from NFCU for 16k at 6.75% ($324)... my old one was 22k at 11.9% ($485)
 
so after spending many months repairing my CR.... i'm just wondering how much of a hit will I see it my score? So it will be finish out my 2year 22k loan but creating a new loan of 16k (5yrs...)
 
correct me if i'm wrong but i'm thinking I would probally take a 20point hit per CRA but will climb back up after like 6months???
 
4/29/08 TU: 635 (2/1) EQ: 663 (1/1) EX: 652 (1/1)
6/07/08 TU: 688 (2/1) EQ: 672 (1/1) EX: 679 (1/1)
CA/CO
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Valued Contributor

Re: Basic question....

ant,
 
It depends upon the average age of your other accounts. This will not take the average age of the original car loan off...that will remain on your report for 10 years. It does take points for new credit and lower your average age. Having an installment loan maintains your credit mix points.
 
I doubt your score will go down much unless the new auto loan lowers your average age by quite a bit....and like you said it should restore most points in 6 months time.
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Regular Contributor

Re: Basic question....



antsmith101 wrote:
Just a basic question that probally been asked but didnt see in forum title section.. so I got approved for auto refi from NFCU for 16k at 6.75% ($324)... my old one was 22k at 11.9% ($485)
so after spending many months repairing my CR.... i'm just wondering how much of a hit will I see it my score? So it will be finish out my 2year 22k loan but creating a new loan of 16k (5yrs...)
correct me if i'm wrong but i'm thinking I would probally take a 20point hit per CRA but will climb back up after like 6months???





I'm in the same boat, just refi'd my 1 year auto loan. I am still waiting to see what kind of affect it has on my Fico score... TC just started reporting the new loan, old one is still there as well, no alerts from SW yet.

Starting Score: 556
Current Score: 672, 681, 692
Goal Score: 700, 700, 700


Take the myFICO Fitness Challenge
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