Refinancing Auto Loan to remove recent late?

[Anonymous]

Good evening My Fico, 

Long time lurker and my first post. Trying to start with rebuilding my credit after years of bouncing around. 

I have an auto loan with Bridgcrest/Carvana that has 3, 30 days lates within the last 24 months. I'm also pre-approved for a refinance through capital one and considering it, it would lower my payments by about 15% monthly.
My question is If I proceed, does the Bridgecrest loan being closed in a sense erase the 30 day lates? I understand that the bridgcrest account will still be listed on my credit report as closed or paid, but do the lates still factor into scoring with it being closed?

I recently applied to a credit card and recent late was one of the reasons for the decline.

[Anonymous]

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@Anonymous wrote:

Good evening My Fico, 

Long time lurker and my first post. Trying to start with rebuilding my credit after years of bouncing around. 

I have an auto loan with Bridgcrest/Carvana that has 3, 30 days lates within the last 24 months. I'm also pre-approved for a refinance through capital one and considering it, it would lower my payments by about 15% monthly.
My question is If I proceed, does the Bridgecrest loan being closed in a sense erase the 30 day lates? I understand that the bridgcrest account will still be listed on my credit report as closed or paid, but do the lates still factor into scoring with it being closed?

I recently applied to a credit card and recent late was one of the reasons for the decline.

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This is a common misconception that simply closing an account will erase any bad affects. The lates will still factor into your score. 3 x 30d lates in 24 months is considered "recent lates". At 3 years and 9 months, my SO still gets the message "recent lates". At 4 years the message went away. This is just my experience, it could vary depending on lender or bureau.

Saving 15% a month is awesome! It just will not improve your score, unfortunately. As we say around here, finances before fico!

Good luck!

[Shooting-For-800]

closed accounts stay on your credit report for years bad or good 

[Anonymous]

Thanks for the reply. Kinda figured that but wasn't sure. I like "finances over Fico" lol

One other follow up question, do the list of reasons for denial go in order of importance? Like collections account listed first cause it's the biggest reason for denial?

[Anonymous]

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@Anonymous wrote:

Thanks for the reply. Kinda figured that but wasn't sure. I like "finances over Fico" lol

One other follow up question, do the list of reasons for denial go in order of importance? Like collections account listed first cause it's the biggest reason for denial?

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I believe so, but I will let others chime in on that one!

[OmarGB9]

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@Anonymous wrote:

Thanks for the reply. Kinda figured that but wasn't sure. I like "finances over Fico" lol

One other follow up question, do the list of reasons for denial go in order of importance? Like collections account listed first cause it's the biggest reason for denial?

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Yes I believe so, and the further down the list you go, the more irrelevant the reasons seem to be in some cases.