Effect of refi of car loan??

[Anonymous]

I was thinking of refinancing my car loan over a longer term to reduce my payment from $300 per month to $100 per month.

How would this move affect my credit?

[smallfry]

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@Anonymous wrote:

I was thinking of refinancing my car loan over a longer term to reduce my payment from $300 per month to $100 per month.

How would this move affect my credit?

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New accounts especially like that do not help your scores. If you save money then do it. The point hit will depend upon your file. Unless you are seeking a mortgage very soon it won't hurt you most probably but like everything in the credit game YMMV.

[Anonymous]

I am seeking to buy a new house in the next six months, so it sounds like I should wait to refinance the car.  What do you think?

I was just hoping to put the extra $200 per month in a savings account.  And I thought having $200 less in Installment debt might increase the amount of mtg for which I could qualify.  What do you think?

[smallfry]

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@Anonymous wrote:

I am seeking to buy a new house in the next six months, so it sounds like I should wait to refinance the car. What do you think?

I was just hoping to put the extra $200 per month in a savings account. And I thought having $200 less in Installment debt might increase the amount of mtg for which I could qualify. What do you think?

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Why not post this question in the mortgage forum and ask one of the mortgage experts like Shane for some help? I am inclined to think you might want to wait but I could be wrong.