Comments on: Will refinancing my auto loan to a lower monthly payment and less interest paid out, hurt my credit score? http://automobilerefinancing.net/will-refinancing-my-auto-loan-to-a-lower-monthly-payment-and-less-interest-paid-out-hurt-my-credit-score Find a good automobile refinancing loan can possible saving hundreds dollar monthly by getting new loan at lower auto interest rate. Mon, 22 Nov 2010 17:30:02 +0000 hourly 1 By: dan http://automobilerefinancing.net/will-refinancing-my-auto-loan-to-a-lower-monthly-payment-and-less-interest-paid-out-hurt-my-credit-score/comment-page-1#comment-237 dan Wed, 17 Mar 2010 19:20:29 +0000 #comment-237 the real answer is yes. paying off your loan can hurt your credit score. The first auto credit score will be paid off and that builds credit. However your new loan will have a high balance and will add new debt that lenders will look at. If you want to increase your credit score make larger payments on the car loan. In order to increase your credit score make sure you pay off balances and DO NOT GET YOUR CREDIT PULLED BY A LENDER. Also make sure you order a copy of your credit score (this does not count against you) so you can check for errors. finally make sure your good credit is updated as this can really help build your score. the real answer is yes. paying off your loan can hurt your credit score. The first auto credit score will be paid off and that builds credit. However your new loan will have a high balance and will add new debt that lenders will look at. If you want to increase your credit score make larger payments on the car loan. In order to increase your credit score make sure you pay off balances and DO NOT GET YOUR CREDIT PULLED BY A LENDER. Also make sure you order a copy of your credit score (this does not count against you) so you can check for errors. finally make sure your good credit is updated as this can really help build your score.

]]> By: Rush is a band http://automobilerefinancing.net/will-refinancing-my-auto-loan-to-a-lower-monthly-payment-and-less-interest-paid-out-hurt-my-credit-score/comment-page-1#comment-238 Rush is a band Wed, 17 Mar 2010 19:20:29 +0000 #comment-238 The lower rate and the lower monthly payments won't hurt your score. What might cost you a few points initially is the application for the new loan as seeking new credit always lowers your score. The fact that you would then re-pay the old loan and then not seek new credit for a while should bring it back up. Good luck! The lower rate and the lower monthly payments won’t hurt your score. What might cost you a few points initially is the application for the new loan as seeking new credit always lowers your score. The fact that you would then re-pay the old loan and then not seek new credit for a while should bring it back up.

Good luck!

]]> By: cbmttek http://automobilerefinancing.net/will-refinancing-my-auto-loan-to-a-lower-monthly-payment-and-less-interest-paid-out-hurt-my-credit-score/comment-page-1#comment-239 cbmttek Wed, 17 Mar 2010 19:20:29 +0000 #comment-239 Maybe it will cost you a point or two. A lot depends on what else is in your credit report. But, what will be a large help to you is the reduced monthly payment. That will far overshadow the minimal drop in credit score. One of the things that lenders look at is your debt to income ratio. By lowering your car payments, you are increasing that ratio, and demonstrating that you can better afford the payments. I say do it. Any reduction in the the interest you are paying is a good thing. Maybe it will cost you a point or two. A lot depends on what else is in your credit report.

But, what will be a large help to you is the reduced monthly payment. That will far overshadow the minimal drop in credit score. One of the things that lenders look at is your debt to income ratio. By lowering your car payments, you are increasing that ratio, and demonstrating that you can better afford the payments.

I say do it. Any reduction in the the interest you are paying is a good thing.

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