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Regular Contributor
k-s
Posts: 146
Registered: ‎10-07-2013

Planning to refi auto loan

So, about 8 months ago, my fiancé and I bought a car together. At the time, our credit was not as good as it now (no baddies, just youth and low AAoA), so we ended up with a pretty bad interest rate (5.14%). We have since increased our income, been approved for another auto loan (at 1.25% this time), gotten several prime credit cards, and seen our scores jump up. All is well for us now, except that darn interest rate! But, I am a member of a credit union and they just lowered their auto loan refi rates down to 1.85% for a 60 month term.

I calculated it and that would save us $50 a month (about $3000 over the life of the loan!) and I am very tempted to apply. The only thing that concerns me is that I was just approved for the BCE and TrueEarnings cards ($10,000 and $2,000 limits) and I'm wondering if A: will this be too many inquiries in too short a time period? and B: should I wait until the new Amex cards have had a chance to report for a bit?

I really want to take advantage of this savings, but not at the cost of my credit. What affect do you guys think this would have on my scores?
EQ MyFICO: 719 - Discover It TU FICO: 738 - EX 744 (lender pull)
total credit limits: $80k
current utilization: 17%
current AAoA: 1 year
Moderator
Revelate
Posts: 8,447
Registered: ‎12-30-2011

Re: Planning to refi auto loan

[ Edited ]

Best time to take additional inquiries is when you have several already mathematically :smileyhappy:.  Constant sprees don't make any sense, but spacing them out to make one's applications in groups is a good approach.

 

Better to garden it all at the same time, if it'd save you money, just apply now.  Worst case you get denied and have to wait six months or whatever, which would be about the same time as just waiting anyway if trying to optimize for best chance, so this inquiry costs you next to nothing.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Valued Contributor
parakleet
Posts: 1,135
Registered: ‎04-13-2013

Re: Planning to refi auto loan

The whole point of having good credit is so that it'll save you money. If you have a chance to save some money with a refi, I'd do it in a heartbeat.

Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Established Contributor
kroberts67
Posts: 813
Registered: ‎03-04-2013

Re: Planning to refi auto loan

Saving $50/month is more important than score. Score is temporary, time goes by with perfect payments and inq fade away.


FICO: EQ 727 | TU 724 | EX 718
SFFCU Visa $11.3k + LOC $5k, USAA Amex $6k, USAA MC $7k, Amex BCE $4.5k, Cap1 $1k, Freedom $5k, Slate $3.2k, Barclays SM $5k.

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Regular Contributor
k-s
Posts: 146
Registered: ‎10-07-2013

Re: Planning to refi auto loan

You guys are so right. I don't know what I was so worried about. I am definitely going to make an appointment with a loan officer at the bank next week. 

Thanks!

EQ MyFICO: 719 - Discover It TU FICO: 738 - EX 744 (lender pull)
total credit limits: $80k
current utilization: 17%
current AAoA: 1 year
Established Contributor
SamsungHDTV
Posts: 517
Registered: ‎10-25-2011

Re: Planning to refi auto loan

I also vote for the refinance. Good luck.

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.

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