will re-financing worsen my FICO score?

Anonymous · ‎06-17-2009

I have a chance to re-finance my car loan with a better interest rate. should I go for it? would it lower my FICO score. I have car loan only since oct 2008.

thanks

llecs · ‎06-17-2009

The new TL can lower your AAoA and your score. However, if it meant saving hundreds or even thousands.....

Anonymous · ‎06-20-2009

I also had a loan opened 10/08. I refinanced last month. I didn't have a hit to my scores because I already have a lot of inquiries and I have other new accounts from around Oct. No score hit for me. YMMV

marty56 · ‎06-20-2009

@llecs wrote:
The new TL can lower your AAoA and your score. However, if it meant saving hundreds or even thousands.....

Yes, despite everyone wanting 800 credit scores (i'm 100% guilty) , never loose site of the goal of being able to get the credit you need in terms what saving money or getting out of debt quicker, even at the expense of some FICO points.

1/25/2021: FICO 850 EQ 848 TU 847 EX

Anonymous · ‎06-20-2009

You will receive a positive "bump" for a paid off loan.

You will receive negative due to the inquiry/new TL.

Either way it will be isostasy in regards to your after all is said and done fico compiled 3 months after the switch. Remember, unless you are at key levels(Say 610 to 590), 20 points difference does not matter much.