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Registered: ‎11-29-2012
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Refinanced car, big hit?

So I refinanced my post bk car today with Nfcu, went from 17.9% down to 8.49%. That was a no brainer for the long haul. Am I going to take a big score hit for one loan closing and a new one opening? I also think long term the refi will help because the old loan was classed as a finance company, but the new will be as an auto loan, or does that not matter for scoring? I only had the old loan for six months.

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 1/22/15 TU 645; EQ 605; EX 633 Goal Score:
 625 for now– New goal 675
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Posts: 1,442
Registered: ‎08-30-2011
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Re: Refinanced car, big hit?


starry1 wrote:
So I refinanced my post bk car today with Nfcu, went from 17.9% down to 8.49%. That was a no brainer for the long haul. Am I going to take a big score hit for one loan closing and a new one opening? I also think long term the refi will help because the old loan was classed as a finance company, but the new will be as an auto loan, or does that not matter for scoring? I only had the old loan for six months.


You shouldn't take much of a hit at all.  Recently I did a similar refi (2 actually), no hit whatsoever.  Installment loans have less of an impact on one's scores versus credit cards.  Where one can run into problems is if you have more than 4 installment loans, for whatever reason. 

Diners Club Premier MasterCard $50K / AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 818 EQ = 822 TU = 830 - 01/2015
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