I just refinanced my auto loan 2 months ago from 22% to 18%, I think i can get a better rate now. Should I do it or would this hurt my credit? thanks for the help… score went from 590 to 655 now in two months!! (after 1 year of hard work!!)
Related Resources
- Low Interest Auto Finance Loans
- Lenders Offering The Best Auto Loans – PcQL Article
- Hot Air » Blog Archive » Ryan: CBO score uses double-counting, funds “15,000 IRS agents”
Mail this post
Every time you fill out an application, your score takes a ding. However, showing a paid off car loan would bring your score up.
The problem with refinancing your car loan is that you keep extending the term and are racking up more interest charges overall. If you can really find a substantially better interest rate, consider shortening the term. Your payment might stay about the same amount but you’d pay off the loan a lot sooner.
By the way, I simply cannot imagine paying even 18% interest on a car loan!