Auto Loan Refinancing

[dangcredit]

    Got approved last year by Westlake Financial for a 20% APR auto loan. My wife and I are currently refinancing it with Wellsfargo for 17% APR. My wife has no -ve's on credit but has very young credit having immigrated 3 years ago and being reserved on taking on credit cards, she got one from Capital one and I think now she is coming around and may get a second, even though secured. So her scores will start increaseing faster.( joint on a springleaf loan that reports +ve as well). Am in rebuild mode having -ve's fall off after 7 years waiting. Wish I knew then what I know now from this forum.

 Went to Toyota and they mentioned something that I thought might have been a sales pitch but would like to make sure. If we do refinance, does he old loan with Westlake report as paid off auto loan thus getting another +ve item reporting on our reports?

(I apologize, I have not mastered the credit forum lingo, CLI, CO, AAoA etc. Getting there)

[Anonymous]

try lendingtree.com they helped me go from 14.99 to 3.99%

[dangcredit]

No cant do. 1st offer that came back was 23-24% so am not even thinking positive about the rest in 24 hours. So will just go ahead and close with Wellsfargo, and eneter gardening for atleast 6 months. I need CLI, more C.C unsecured and I need to have all these auto apps fall off/ weaken.

[Remember0]

I'm not sure if this is your only question, but yes. if you refi the Westlake loan (AND it currently shows on your credit as an open and current loan), then yes it'll show up as closed and positive. But if it doesn't currently report, then it won't magically start reporting when it's paid in full.

[dangcredit]

Thanks, it does report and has been for a year never late. I did clarify with Wellsfargo and they confirmed it will report a paid off auto loan. Good lord I cant wait for it to start reporting an see a hike on my scores.  Gardening now though.

[Remember0]

Actually you might see your score drop. FICO tends to like an open loan more than a closed one haha. But the hit of it being closed should wear off soon and your FICO should be higher once the WF loan ages a bit. The temporary (6 months typically at most) minor hit will be definitely worth the interest savings!

[dangcredit]

Yeah am expecting a drop in the score but I will have a "stronger" report/history and am planning on gardening for a while now hopefully 12 months for all those auto and C.C inquiries to weaken. By the time 12/2015 hits I hope am in the 700's. Fingers crossed.

[dangcredit]

UPDATE....

    I actually got a call today from RateGenius since I did that ap on Lending Tree. And they are giving quite a better offer than Wellsfargo. Dropping from 19.99% (westlake) to 13%(RateGenius). Wellsfargo offered 17%. So its a deal I have to take. I have read quite a few negative reviews though about this guys. Is there anyone who has dealt with them before or know about their business??