Auto refinance vs personal loan?

[Anonymous]

Is there any benefit or drawback when considering an auto loan refinance to do it as a personal loan rather than another auto loan?  I was only thinking about it from the "credit mix" standpoint; I've got several mortgages, auto loans, etc. in my portfolio already but never a personal loan (or student loan either for that matter).  I doubt I'll ever have a need for a student loan, but since I'm considering refinancing my auto loan already I was thinking it could be a good time to do it as a personal loan just to get that added to my mix.

Any benefits/drawbacks to this?  I have no idea how interest rates would compare, loan terms, etc.  My current auto loan is at 6.99% which of course is very high; I'm thinking I could cut that in half with a refinance based on some of the rates I've seen kicking around.  I'm only looking for $10k and my credit scores are in the mid 700's.  Thoughts, anyone?

[Anonymous]

The auto loan plays the same role as would a personal loan on your reports. If you are thinking of getting a personal loan to pay off your auto loan instead of auto refinancing, then don't.  The interest rate on the personal loan is going to be higher.

The only way to get super low interest rate on personal loans is to use online lensders such as Proper, Lending Club etc.. but those loans are actually considered [finance loans] and have a negative impact on your credit file.

[Anonymous]

Gotcha.  I always thought that in the "credit mix" category it helped your profile if you had more type of installment loans (mortage, auto, personal, student) but I guess I was mistaken.

Any suggestions on who to consider for an auto loan refinance?  I asked this question over in the auto loans section and after 40 views I still have not received a reply.

[Anonymous]

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@Anonymous wrote:

Gotcha.  I always thought that in the "credit mix" category it helped your profile if you had more type of installment loans (mortage, auto, personal, student) but I guess I was mistaken.

Any suggestions on who to consider for an auto loan refinance?  I asked this question over in the auto loans section and after 40 views I still have not received a reply.

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Credit unions often have good rates for auto refinancing.. Penfed, DCU amongst others have good rates.  I'd suggest you look into them and see what they can offer you.  Or even a local credit union close to you...

[RonM21]

I agree. Credit unions can sometimes give offers that nobody else can match. Worth looking in to.

[Anonymous]

Sounds good.  I'm a member of a local credit union and will see what they can do.