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Refinanced Auto Loan Impact in Credit Profile

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WJL
New Contributor

Refinanced Auto Loan Impact in Credit Profile

Hello - I just refinanced my car with a CU and was wondering how this will impact my payment history. I'm guessing that the 3 years of my on-time payment with Capital One will be removed and a new account will show up for the CU? As a result, should I expect any negative impact in my credit profile? Thank you for your time and help.

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1 REPLY 1
Lel
Moderator Emeritus

Re: Refinanced Auto Loan Impact in Credit Profile

The payment history of your former loan won't disappear. The account will be marked as paid and closed, but should persist on your credit report for several more years. There may be a slight negative impact due to the new account, its associated inquiry, and a decrease in the average account age. But if you stand to save a considerable amount on interest charges, then it was worth it.
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