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Frequent Contributor
money_talks
Posts: 261
Registered: ‎07-02-2013
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Re: Should I refinance?

Revelate wrote: If had to do it over again and I didn't have a theoretical mortgage coming up, I'd refinance my vehicle for a *longer* term rather than a shorter one, and play silly FICO games. 

 

Why is a longer term better than a shorter one? Also, what do you mean by playing silly FICO games?

Valued Contributor
maiden_girl
Posts: 2,110
Registered: ‎12-29-2011
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Re: Should I refinance?

Longer terms (60+ months) used to offer a lower APR and people would pay it off earlier to avoid the additional interest but the car game caught on...Lol.

The truth is out there...
FICO scores: 764 (EQ) 732 (EX) 757 (TU) 9/14 | Goal score: 750+ (all 3)
Tradelines: Capital One QS NPSL (5.0k) | Discover IT (6.0k) | Walmart Mastercard (5.0k) | Chase Freedom NPSL (7.3k) | Citi Simplicity (9.3k)






Valued Contributor
maiden_girl
Posts: 2,110
Registered: ‎12-29-2011
0

Re: Should I refinance?

Little update on my refinance search. I applied to Western CU a few days ago. Western is currently reviewiing my documentation and will hopefully provide me with an offer by end of today or Monday. I'm soo hopeful this CU comes through with a good offer. I also applied through Lending Tree which was a big mistake. I ended up with 14 inquires from compaines I didn't even agree to let look in my credit...O_O

The truth is out there...
FICO scores: 764 (EQ) 732 (EX) 757 (TU) 9/14 | Goal score: 750+ (all 3)
Tradelines: Capital One QS NPSL (5.0k) | Discover IT (6.0k) | Walmart Mastercard (5.0k) | Chase Freedom NPSL (7.3k) | Citi Simplicity (9.3k)






Valued Contributor
FocusedAndDetermined
Posts: 6,446
Registered: ‎01-05-2013
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Re: Should I refinance?


maiden_girl wrote:

Little update on my refinance search. I applied to Western CU a few days ago. Western is currently reviewiing my documentation and will hopefully provide me with an offer by end of today or Monday. I'm soo hopeful this CU comes through with a good offer. I also applied through Lending Tree which was a big mistake. I ended up with 14 inquires from compaines I didn't even agree to let look in my credit...O_O


That's the danger with Lending Tree; you can get a ton of unwanted inquiries.  If you don't get offers at a lower rate, I believe the best thing you can do is make your regular payment and then make an additional payment to principal, only.  Most lenders will allow you to fo this, and it can make a hug differnce.

 

I call installment loans dragons, because the drag on and on and.....  The faster your can gt rid of one the better, an the savings works as well as refinancing,

 

Good luck  to you.

 

Valued Contributor
maiden_girl
Posts: 2,110
Registered: ‎12-29-2011
0

Re: Should I refinance?

Thank you all for your advice! :smileyhappy:

 

I've decided not to refinance my vehicle. It's become a bit of a hassle so I'm just going to stick with my current loan.

The truth is out there...
FICO scores: 764 (EQ) 732 (EX) 757 (TU) 9/14 | Goal score: 750+ (all 3)
Tradelines: Capital One QS NPSL (5.0k) | Discover IT (6.0k) | Walmart Mastercard (5.0k) | Chase Freedom NPSL (7.3k) | Citi Simplicity (9.3k)






Moderator
Revelate
Posts: 9,758
Registered: ‎12-30-2011
0

Re: Should I refinance?


money_talks wrote:

Revelate wrote: If had to do it over again and I didn't have a theoretical mortgage coming up, I'd refinance my vehicle for a *longer* term rather than a shorter one, and play silly FICO games. 

 

Why is a longer term better than a shorter one? Also, what do you mean by playing silly FICO games?


Longer tradelines = better tradelines.

 

In this case, if I could finance my car for something like 2% where the interest is irrelevant to me financially compared to putting lipstick on my pig by having a nice lengthy payment-history auto loan, I would.

 

Not sure there's much resolution past the 3 year mark, though there's some lenders like WFDS that if you pickup a loan through them via a dealer, you can pretty much turn around and pay 95% of the loan immediately and push your next payment date out by some absurd amount, and then just let it sit idle paying a penny every few months or whatever.  2% interest on $100 for a 5 year loan, call it $10 bucks financing charge for a 3.5ish year tradeline.

 

Yes please.

 

Unfortunately my current DCU auto loan only allows me to push my payment date out by 3 months. :smileysad:

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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