refinancing an auto loan

[Anonymous]

Hi everyone,

                  Can someone tell me what kind of impact refinancing my car with another bank will have on my score.

[llecs]

You'd have the new TL reporting (lowers AAoA plus the new credit ding) and that will hurt some. I predict 20 or so points with nearly all of them returning within a year.

[Anonymous]

If you have a car loan that is only 6 months old and you refi, would that affect your AAoA a lot, or just a bit?

[iltph]

It all depends on the age of your other accounts. You can see exactly how it would effect you by adding up all of the months for each account that is showing up on your CR, then dividing that number by the number of accounts you have. If you have 4 accounts and they all add up to 80 months, then your AAoA would be 1 year and 8 months.

[Anonymous]

what is a "good" AAoA percentage?

And if I close an account, how does that hurt my AAoA?  Because I can't consider that items date in my percentage?

Message Edited by smo65d11 on 02-20-2009 09:24 AM

[iltph]

It's hard to say really, but looking at MyFICO's site they state that most FICO High Achievers have and AAoA between 6 and 12 years. The best way to fix this without having to wait a loooong time is to have a spouse or close family member add you as an AU if they have a really old account. My dad just added me to his Sears card which was opened in 1972!

It won't really hurt it since it would still remain on your CR, and the date it was opened would be calculated in your AAoA. You just want to make sure that you've opened the cards that you really want to hang on to for a long time, then let them age for a while without opening any new accounts.

[Anonymous]

OUCH!!!     It's worth it though,I got a much better rate. Thanks for the responses