Re- financed

[babbles]

just re-fianaced a personal loan with USAA for a reduced rate, how will that show on my credit files?  amount of course stayed the same

[SouthJamaica]

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@babbles wrote:

just re-fianaced a personal loan with USAA for a reduced rate, how will that show on my credit files?  amount of course stayed the same

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It will show up as a new installment loan, with a 100% unpaid balance.

[babbles]

could the close out of one and open of the other cancel out the negative drop in points?

[cashorcharge]

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@babbles wrote:

could the close out of one and open of the other cancel out the negative drop in points?

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No....you'll get a ding for the new account and you'll get another ding for the 100% utilization that @SouthJamaica mentioned.

[babbles]

I guess it will be ding a ling because a new auto loan is opening up also but I paid it down to 83% if that makes any difference

[disdreamin]

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@babbles wrote:

I guess it will be ding a ling because a new auto loan is opening up also but I paid it down to 83% if that makes any difference

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I'm not sure what the threshold is for that, but I've paid my auto loan down below 50% and my scores have yet to rebound completely to where they were before I paid off the previous auto loan and took out the new one (those two things happened within one reporting cycle of each other). Sadly, it seems like it may take time and paying the loan down substantially - perhaps sub-10%.

[SouthJamaica]

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@babbles wrote:

could the close out of one and open of the other cancel out the negative drop in points?

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As @cashorcharge already pointed out, no.  A mostly paid down loan (defined as one with a balance of less than 10%) is good for your FICO 8's and 9's, while a loan which is not paid down is not good. Also the inquiry and new account and new account with balance are all not good.

[babbles]

I love how USAA re- opened the account, open date is 3 yrs ago(original loan date) with 40% of the loan paid off, Beautiful!!