Installment Loan ????

[Anonymous]

Ok.. so the whole purpose in my coming here was to help my tiny little credit score limp up to a level that would help me refinance my car.

I have $8000 and 3 years left on my current loan with Capital One. I am currently paying 29% interest (OUCH!)

My car is worth just under $8000 and I have the cash to make up the difference (as long as it isn't under $7500 in which case I couldn't get a loan anyway - Hence my rush!)

My question is this...

If/When I refinance my car how will the Capital One loan appear? Will it appear as paid or refinanced? And the new loan will appear new (Duh).

I'm not REAL concerned with the effect it will have on my score at this point becaus the car loan was the goal, I won't be buying a new house until the car is paid for and that should take another year anyway. I won't get any boost because this will be the 4th car loan and like my 1 billionth non- mortgage installment loan. So Im expecting a drop there anyway.

[GFer]

Closed and Sold. (This of course, means paid)

With refi, you'll just be dinged for new account and inquiry. Old account won't hurt. It'll stay on for 10 years to help your AAoA's.

[RobertEG]

The old,paid Cap1 will be gone from util, and still carry in your lenght of credit history calc. for ten years after closing, so no current FICO impact there.

The FICO impact will be two-pronged.  The inq needed to get the new loan, and a reduction in avg length of credit by adding the new account in your calc.

[Anonymous]

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@Anonymous wrote:

If/When I refinance my car how will the Capital One loan appear? Will it appear as paid or refinanced? And the new loan will appear new (Duh).

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I refi'ed and the old car loan reports

"Pays account as agreed" - this is in current status

"Paid account / zero balance" - this is in the description