Refinancing auto loan / credit score impact

[Joeychgo]

So almost a year ago, I financed a car.  All payments made on time, extra payments made, etc.   Interest is on the higher side.   (8%)

What i'm wondering is -- aside from the interest savings, is it a good move for my credit score to refinance this soon?  (like at the 1 year mark)

[Girlzilla88]

8% isn't 'high' but if you can get it to 3% or so now then ok they recommend waiting at least 1 year to Refi so it would be in your favor that you hit that year mark.     But if you go from 8% to 7.5% then it really doesn't make a whole lot of sense unless you just hate your current lender lol.    

[Joeychgo]

My thinking was to get a second lender reporting

[Remedios]

Hi and welcome to the forums @Joeychgo 

Scoring wise, you may experience a ding as you'll get fully utilized loan (again) and it may shorten your AAoA enough to cause additional scoring drop.

Without more information from you, it's hard to tell how your profile will respond, but i'd expect to see some scoring drop. 

With that said, if it's going to save you money, finances should come before scoring 

[Joeychgo]

well I only took the loan to improve my score as I didnt have any loans on my report....      

[Girlzilla88]

Refinancing won't get a second lender reporting it will be taking over your 1 spot, to broaden your file open 1 or 2 CC's but you really just need a CC or two and one other spot, so Personal Loan/Car loan etc...

[Remedios]

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@Joeychgo wrote:

well I only took the loan to improve my score as I didnt have any loans on my report....      

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Your score will see the most improvement from any loan once it's paid below 9%. 

Once loan is paid off, if it's the only open one, score usually drops again. 

You cannot quite please the scoring system, so do what's right for you. If you can pay it off, do so, then get SSL or Self Lender loan, smaller amount and a whole lot less in interest

If that's not an option, refinance if you can