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Refinance Loan count as new account?

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Anonymous
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Refinance Loan count as new account?

Well wish I had discovered this website before I went out and got my car loan pulled out so here is my current situation. 

 

I got my car loan back in Oct1st when my credit wasn't too great and I have seen some great deals on refinancing at the moment. I am not exactly expecting to qualify for the best rate my credit has improved but maybe not enough to get the best rate. I am also trying to purchase a home so my question is if I refinance my car I know it will probably be a new inquiry but will it also be a new recently opened account which will hurt my credit score? Some more details about my situation if they make a difference.

 

I will be getting a VA loan.

I recently raised my Ex score from 615 on 12/3/09 to 660 12/29/09

Transunion from  633 12/2/09 to 685 12/29/09

I want to refinance through Navy Federal Credit Union 

Not all my debt I reduced or the loan I paid off has posted on my credit reports. 

  

Message 1 of 5
4 REPLIES 4
Jazzzy
Valued Contributor

Re: Refinance Loan count as new account?

You want to refinance somewhere other than where your loan is currently? Right?

 

If that is the case, then...yes. It would be a new account. It seems you've gotten your scores up into the safe limit. How long before you would be closing on a mortgage?

Message 2 of 5
Anonymous
Not applicable

Re: Refinance Loan count as new account?

Yes currently I have the loan through wachovia and want to refinance through NFCU. 

 

Well I know I got approved for a loan of about 260000 before I got the car loan with a 620. I will be putting in all the paperwork needed once again on the first week of January and if I can get around that same amount maybe higher should be finishing up as long as the process takes to get approved and closed out which my realtor has told me once i get my approval letter shouldn't take more than 2 weeks. Not sure if I can get 260k still since I took out the car loan after i got approved for that before like I said wish I had done some more research and found this website I wouldn't have gotten the car. 

 

So should I just go ahead with trying to get the mortgage before I do anything else? Since I already made that mistake once before. 

Message 3 of 5
Jazzzy
Valued Contributor

Re: Refinance Loan count as new account?


@Anonymous wrote:

Yes currently I have the loan through wachovia and want to refinance through NFCU. 

 

Well I know I got approved for a loan of about 260000 before I got the car loan with a 620. I will be putting in all the paperwork needed once again on the first week of January and if I can get around that same amount maybe higher should be finishing up as long as the process takes to get approved and closed out which my realtor has told me once i get my approval letter shouldn't take more than 2 weeks. Not sure if I can get 260k still since I took out the car loan after i got approved for that before like I said wish I had done some more research and found this website I wouldn't have gotten the car. 

 

So should I just go ahead with trying to get the mortgage before I do anything else? Since I already made that mistake once before. 


Yes! Don't do anything more with refinancing a car, or with new credit cards...any type of new credit until that mortgage closes. Your original car loan would also remain on your credit reports, and that would give you two new accounts for one car. Also, you don't want to lose points for new inquiries.

 

Do you know what your FICO scores were when you got approved for a mortgage the first time? You may want to pull your EQ and TU FICO scores from this site before you try to get mortgage approval again. What have they told you that you need for a middle score? Is it 620?

 

Are you familiar with "tweaking" your FICO scores before applying for credit? Paying your credit cards off before the statement cuts, for example, instead of after you get the statement in the mail? 

 

Message 4 of 5
Anonymous
Not applicable

Re: Refinance Loan count as new account?

The scores I posted are my actual fico score from this website. 660 and 685. 

VA Loan I have been told it is 620 which I do not know my experian fico score but at the worst my middle score is a 660.

The first time I got the approval my fico middle score was in the 630 range.

I payed off most of my credit cards Dec 1st which is probably why my score jumped so much Dec 28th.

 

Thank-you very much for the info and I will make sure not to make any new inquiry's or open any new accounts.  

Message 5 of 5
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