Will refinancing my car make it a new account?

JMMD · ‎02-25-2015

I'm trying to stay away from new accounts in order to not effect the age of our accounts. One of the reasons given for a lower score is too many new accounts. If we refi our car will this effect that?

Anonymous · ‎02-25-2015

Yep. It basically will pay off the old account and close it, then open a new account with the new balance.

JMMD · ‎02-25-2015

@Anonymous wrote:
Yep. It basically will pay off the old account and close it, then open a new account with the new balance.

Thanks. Trying to weigh the cost of lower payments verses upping my credit score. Hard descision at this point in time.

RobertEG · ‎02-25-2015

You might attempt to find a lendor who does not report to the CRAs,,,,,,,

JMMD · ‎02-26-2015

@RobertEG wrote:
You might attempt to find a lendor who does not report to the CRAs,,,,,,,

But I need it to report as we are rebuilding after a BK in 2012.

Anonymous · ‎02-27-2015

If a refi would lower your payments and/or APR that is a good move in most cases. It makes financial cents :-) ... It may be a new accout but you do not loose having an open installment loan. I did it to 2 auto loans the same day and did not see any negative affects on my score. YMMV.

takeshi74 · ‎02-27-2015

@JMMD wrote:
I'm trying to stay away from new accounts in order to not effect the age of our accounts.

Keep in mind that's only 15%:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

@JMMD wrote:
But I need it to report as we are rebuilding after a BK in 2012.

There's your real problem. General advice is that your financial health trumps any scoring concerns.

JMMD · ‎02-27-2015

@Anonymous wrote:
If a refi would lower your payments and/or APR that is a good move in most cases. It makes financial cents :-) ... It may be a new accout but you do not loose having an open installment loan. I did it to 2 auto loans the same day and did not see any negative affects on my score. YMMV.

Thanks! I think we are going to go for it next month!

JMMD · ‎02-27-2015

@takeshi74 wrote:
@JMMD wrote:
I'm trying to stay away from new accounts in order to not effect the age of our accounts.
Keep in mind that's only 15%:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

@JMMD wrote:
But I need it to report as we are rebuilding after a BK in 2012.
There's your real problem. General advice is that your financial health trumps any scoring concerns.

I know, but we are trying to buy a house soon so score does matter.