topic Re: Any issues with refinancing then making a big payment in Auto Loans

Any issues with refinancing then making a big payment

randomguy1 — Wed, 18 Dec 2019 15:25:00 GMT

Just wanted to make sure this was kosher...

Was successful in a refinance with a CU. Is it okay to refinance, wait for the statement to post, then make a large (41%) payment to get the FICO bump?

edit: Should be 31% . Thx for the correction.

Re: Any issues with refinancing then making a big payment

Shooting-For-800 — Wed, 18 Dec 2019 15:05:38 GMT

Why not?

I would spread it out over multiple payments for cash flow, but that is me.

Re: Any issues with refinancing then making a big payment

Anonymous — Wed, 18 Dec 2019 15:11:02 GMT

It would be kosher if early repayment is good to go in the terms of the loan,

so you would have to look over them. Some do not allow, or they charge a fee etc.

But also it may or may not push out your next payment date,

so be prepared (if not already) to make normal payment next month and there after.

dont over extend your finances for this possible quick bump

And depending on the math? 41% would bring it down to 59%?

You would see a bump from passing the 88.9% and 68.9% levels.

But your overall profile will factor in, so the bump may be greater or lesser than what you may be thinking.

Next would be the 48.9% level

Good luck!

Re: Any issues with refinancing then making a big payment

randomguy1 — Wed, 18 Dec 2019 15:23:46 GMT

@Anonymous wrote:
It would be kosher if early repayment is good to go in the terms of the loan,
so you would have to look over them. Some do not allow, or they charge a fee etc.

But also it may or may not push out your next payment date,
so be prepared (if not already) to make normal payment next month and there after.
dont over extend your finances for this possible quick bump

And depending on the math? 41% would bring it down to 59%?
You would see a bump from passing the 88.9% and 68.9% levels.
But your overall profile will factor in, so the bump may be greater or lesser than what you may be thinking.
Next would be the 48.9% level

Good luck!

Oops, you are right, that's bad math. The loan is with Alliant and there are no penalties or fees for paying early or early payoff. No issues with extending finances, but that is a good recommendation. Thanks!

Re: Any issues with refinancing then making a big payment

randomguy1 — Wed, 18 Dec 2019 15:25:44 GMT

@Shooting-For-800 wrote:
Why not?

I would spread it out over multiple payments for cash flow, but that is me.

Cash flow is good, good point though.