topic New loan or fix current loan in Rebuilding Your Credit

New loan or fix current loan

Anonymous — Mon, 08 Jun 2020 15:50:33 GMT

Would it be better to get a new auto loan and start fresh or keep the current auto loan and keep working on on time payment history

(current loan was showing late for around 24 months but is now current and has been for 3 months)

Re: New loan or fix current loan

RSX — Mon, 08 Jun 2020 15:53:59 GMT

Not a lot of details here, but based on what you posted, I would say keep paying down the existing loan

your score and lates won't likely get you a new loan anyway

and lates don't drop from your record when you close a loan - they will remain regardless

Re: New loan or fix current loan

rckstrscott — Mon, 08 Jun 2020 16:41:28 GMT

@Anonymous wrote:
Would it be better to get a new auto loan and start fresh or keep the current auto loan and keep working on on time payment history

(current loan was showing late for around 24 months but is now current and has been for 3 months)

The only way this would help your credit score would be if the 24 months of lates were removed via the entire tradeline being removed which would be hard get.

Also; with your current score you would have to weigh if you could even get a new loan with a lower interest than you currently have.

-scott