topic Do ccc's get spooked by new loans? in Credit Cards

Do ccc's get spooked by new loans?

revvystoke — Fri, 22 Nov 2013 07:21:26 GMT

Just wondering how CC companies view new loan accounts, specifically if refinancing? Do they view it as an individual needing cash, or someone overextending oneself, vs refinancing to save a few dollars on interest? I was thinking about refinancing my vehicle from a high 4.0 to a 2.99 rate, plus a little extra cash to cover its annual insurance premium.

I have no debts reporting other then my boa @ 2.2k and my freedom, which stupidly reported 1.6k because the statement date kept bouncing around. I don't necessarily need to refinance, but I don't have anything I am planning to app for unless a new "wonder" card comes out.

Re: Do ccc's get spooked by new loans?

Revelate — Fri, 22 Nov 2013 08:13:53 GMT

@revvystoke wrote:
Just wondering how CC companies view new loan accounts, specifically if refinancing? Do they view it as an individual needing cash, or someone overextending oneself, vs refinancing to save a few dollars on interest? I was thinking about refinancing my vehicle from a high 4.0 to a 2.99 rate, plus a little extra cash to cover its annual insurance premium.

@I have no debts reporting other then my boa @ 2.2k and my freedom, which stupidly reported 1.6k because the statement date kept bouncing around. I don't necessarily need to refinance, but I don't have anything I am planning to app for unless a new "wonder" card comes out.

Non issue unless it pushes you over a DTI threshold which makes them uncomfortable. Most refi's lower one's DTI, this one may keep it roughly even with the cash out option.

Regardless when it comes to refinancing an auto or mortgage loan: if it makes financial sense to do so, don't worry about how it looks on a credit report. Refi's were so bloody common over the last few years anyway in both auto and mortgage spaces it's not like you're in small company by doing this.

Re: Do ccc's get spooked by new loans?

coldnmn — Fri, 22 Nov 2013 11:01:00 GMT

Very easy to explain to ccc if there is an issue they understand saving money. Just makes good financial sense.