Refinancing my 11 months old auto loan - I need suggestions

[alex65]

Hi Friends,

I have an auto loan which is now 11 months old, I want to refinance it. My question is: How Will This Refinancing Affect My Credit Scores and Overall Credit History?

Will this refinancing bring down my overal AAoA?  

I really dont want to impact this refinancing affect my credit history or credit score badly. This auto loan is the oldest loan on my credit history.

Other than this installment loan, i have few credit builder cards (now 5 months old).

I already have a lot of queries on my credit ( may be 40, though i have stopped applying now), and i am working on my scores to reach a 750+ mark so that i could get a good credit card (like 10k + CL) and planning to buy a house.

I would appreciate any help in this matter.

Thanks!

TU -  678 (9/25/2009)

EQ-  682 (10/24/2009)

[creditwherecreditisdue]

Why do you want to refinance your auto loan?

Yes, it will lower your AAoA.

[alex65]

I am getting better interest rate from some other bank and so just thought of saving some money.

[Anonymous]

I don't know what the interest rate is on your old auto loan and your potential new loan.  Remember, you probably won't know the exact rate until they look at your CR.  That being said, there are some pretty nifty rates out there.  What are your current FICO scores - which CRA will your lender be pulling?

Do the math to figure out the impact on your AAofA.

You might also consider doing the math to see how much money you could save by paying your loan down ahead of schedule - it may have a significant impact even with the older interest rate.

Good luck!  And congrats on your rebuilding efforts.