Moderator Emeritus
Posts: 10,860
Registered: ‎12-30-2011
Re: How soon is too soon to refinance an auto-loan?

Typically I recommend holding on to anything for at least six months:

- Everything under that is a short-term loan and may or may not have some penalties FICO wise; certainly 6 months appears to be a bump for FICO on any given tradeline

- You sorta look like a flake to every other lender who views your credit report in doing this for the next 10 years :smileyhappy:


That said, I think for car loans if the interest rate difference is such that it matters to you over six months, then refinance; however, with the paperwork involved make certain a payment doesn't get missed with BMW.  Personally I wouldn't sweat a .4% difference, and I think there's some value (may just be perceived I admit) to having a diversity of lenders on one's credit report.  In the Internet era, having all loans through a single financial institution really doesn't offer the same benefits it did 30 years ago.



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