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Established Member
urbex
Posts: 34
Registered: ‎06-25-2012
0

Refinanced auto loan still shows as open, reporting balance

Approx a year ago I financed a new car, and got it refinanced 6 months later.  On at least my Experian CR, the original loan still shows as open with a significant balance, although it is reporting as current, never late.  When I pull up the page on mycreditinform.com, it appears to be factoring into my utilization as well. 

I had thought about disputing it, but I didn't know if I'm seeing a benefit from having the two auto loans in good standing, or if it's a negative from having a balance roughly double of what it should be.  The overall utilization will stay roughly the same (the original loan is showing as 93%, the refi'ed loan at 95%, with the average reporting at 94%) if I get the original loan removed, but over time it will keep the utilization artificially high, which I think will hurt me in the future.  I do also have two credit cards in good standing, never late, so getting it removed wouldn't wipe out my credit history. 

I don't plan on getting another car loan ever again after this (working towards getting completely out of debt, and never again going back into considerable debt...basically just enough to keep a credit report active for purposes of other companies like insurance, utilities, cell phones, etc that base rates/deposits on credit), so I'm not worried about it from a future loan stand point, but I don't want a balance being carried to bring my score down for the other reasons. 

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pizzadude
Posts: 9,035
Registered: ‎01-28-2010
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Re: Refinanced auto loan still shows as open, reporting balance

I wouldn't worry about it ~ the balance will have no real impact on your FICO® score since it is an installment loan. The loan is in good standing so I wouldn't touch it.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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myjourney
Posts: 25,436
Registered: ‎02-07-2013
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Re: Refinanced auto loan still shows as open, reporting balance


pizzadude wrote:
I wouldn't worry about it ~ the balance will have no real impact on your FICO® score since it is an installment loan. The loan is in good standing so I wouldn't touch it.

+1 installment loans carry very little weight in Fico scoring

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