cancel
Showing results for 
Search instead for 
Did you mean: 

Do ccc's get spooked by new loans?

Frequent Contributor

Do ccc's get spooked by new loans?

Just wondering how CC companies view new loan accounts, specifically if refinancing? Do they view it as an individual needing cash, or someone overextending oneself, vs refinancing to save a few dollars on interest? I was thinking about refinancing my vehicle from a high 4.0 to a 2.99 rate, plus a little extra cash to cover its annual insurance premium.

 

I have no debts reporting other then my boa @ 2.2k and my freedom, which stupidly reported 1.6k because the statement date kept bouncing around. I don't necessarily need to refinance, but I don't have anything I am planning to app for unless a new "wonder" card comes out.

 

AkAir $50k | Marriott $65k | Local CU $8k
TU: 770 / EQ: 748 / EX: 769
Message 1 of 3
2 REPLIES
Moderator

Re: Do ccc's get spooked by new loans?


revvystoke wrote:

Just wondering how CC companies view new loan accounts, specifically if refinancing? Do they view it as an individual needing cash, or someone overextending oneself, vs refinancing to save a few dollars on interest? I was thinking about refinancing my vehicle from a high 4.0 to a 2.99 rate, plus a little extra cash to cover its annual insurance premium.

 

I have no debts reporting other then my boa @ 2.2k and my freedom, which stupidly reported 1.6k because the statement date kept bouncing around. I don't necessarily need to refinance, but I don't have anything I am planning to app for unless a new "wonder" card comes out.

 


Non issue unless it pushes you over a DTI threshold which makes them uncomfortable.  Most refi's lower one's DTI, this one may keep it roughly even with the cash out option.

 

Regardless when it comes to refinancing an auto or mortgage loan: if it makes financial sense to do so, don't worry about how it looks on a credit report.  Refi's were so bloody common over the last few years anyway in both auto and mortgage spaces it's not like you're in small company by doing this.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 2 of 3
Highlighted
Mega Contributor

Re: Do ccc's get spooked by new loans?

Very easy to explain to ccc if there is an issue they understand saving money. Just makes good financial sense. 

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 3 of 3