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Does refinancing show as a paid off car loan on credit report?

Regular Contributor

Does refinancing show as a paid off car loan on credit report?

So I recently had a 1 month car loan refinanced, original bank "Chase" and refinanced through "Penfed".

So the chase account is already showing on my credit report, would this cause my Credit Report to show 2 car seperate car loans?

 

And would the chase account show paid off? Meaning it would look like I paid off a car loan, or would it hint refianced. 

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Frequent Contributor

Re: Does refinancing show as a paid off car loan on credit report?

Once the refi is complete and Chasie is paid off, the account will then appear on your reports as "closed - paid."

Anyone looking at it, though, will immediately know that you refinanced because there will only be one month's payment history in there, and because the "account opened" date and the "account closed" date will be very close to each other.  Nobody will score this as an entire loan paid off on its original terms, but that shouldn't hurt you.  Your aut loan history will still stay active and positive as you pay on the new (refi) loan instead.

 

You cannot inherit several years' worth of loan history simply by refinancing a new loan, but you can lower your interest/payment and keep your history moving forward positive, and that's all that really matters.  Congrats on your refi!

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