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Refi first or new loan first?

Regular Contributor

Refi first or new loan first?

Now that my scores are getting better (and hopefully will be getting even better in the next month since I've paid all of my delinquencies). I'm ready to buy myself a new car.

Question is, right now I've go one car loan at 18.8% (yowch, got that sucker back when I was around 500fico) that I want to refinance with my credit union. But I also want to get a new loan (for a used car)... does it matter which I do first? will one negatively impact my score more than the other thus hurting my chance for a good rate on whichever I do second?

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


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2 REPLIES
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Valued Contributor

Re: Refi first or new loan first?

I would suggest trying to refinance first........If you get good results that will make easier for you to get the 2nd....But if you get the 2nd then try to refi the first you could be sunk.

That way if you don't get the refinance you want you can make better decisions on the idea of a 2nd vehicle.
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
Regular Contributor

Re: Refi first or new loan first?

That makes sense, I'm wondering though if there will be a month or so where the new refi loan shows up but the original loan doesn't show a zero balance yet, so it will look as if I'm trying to acquire 3 loans?

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


Take the myFICO Fitness Challenge