Finance/credit experts

[carlton_fritz]

Who is the resident financial expert regarding credit?

[Sea Six]

What do you want to know?

[carlton_fritz]

What do you want to know?
If someone has an auto loan with bank A and CC with bank B, will refinancing the auto loan with bank B hurt their credit due to all financing being done at one institution?

[carlton_fritz]

Maxed out a credit card or two? :D
No. Got any I can borrow? :leaving:

[Sea Six]

If someone has an auto loan with bank A and CC with bank B, will refinancing the auto loan with bank B hurt their credit due to all financing being done at one institution?

The old loan information will still be on your credit report; it will show as a closed account (closed by consumer, if you're the one who closed it).

It will stay there until it gets too old (7.5 years IIRC).

The new loan will show up as a separate account, albeit with the same name as the credit card company. You'll get "credit" (pun intended) for both accounts, same as before.

If there's any effect on your credit score due to the fact that the same company is dealing with both accounts I'm not aware of it. I certainly wouldn't regard the information any different if I knew the whole situation before and after the refinance of the car loan if I were in a position to loan you money, extend credit or rent a property to you.

[carlton_fritz]

The old loan information will still be on your credit report; it will show as a closed account (closed by consumer, if you're the one who closed it).

It will stay there until it gets too old (7.5 years IIRC).

The new loan will show up as a separate account, albeit with the same name as the credit card company. You'll get "credit" (pun intended) for both accounts, same as before.

If there's any effect on your credit score due to the fact that the same company is dealing with both accounts I'm not aware of it. I certainly wouldn't regard the information any different if I knew the whole situation before and after the refinance of the car loan if I were in a position to loan you money, extend credit or rent a property to you.
I got an opportunity to refinance and lower my payment by $36. Same amount of months, but since my credit has improved, I can get a lower rate. Still working on getting it where it needs to be.

[mrvette]

Been a CUnion member for many years, and there is NO other arrangement worth having....banks suck.....

and a BIG assed bank like Wells/BOA suck even worse.....


:issues:

[lspencer534]

I got an opportunity to refinance and lower my payment by $36. Same amount of months, but since my credit has improved, I can get a lower rate. Still working on getting it where it needs to be.

Why don't you negotiate with bank A to lower your interest rate? Generally most (or a least a lot of) lenders will do this to avoid losing your account.

[carlton_fritz]

Why don't you negotiate with bank A to lower your interest rate? Generally most (or a least a lot of) lenders will do this to avoid losing your account.
Interesting concept. May have to try that.

[lspencer534]

Interesting concept. May have to try that.

I know that a lot of major car lenders (Ford Credit, Ally, USBank) lower rates all the time. Usually all they require is that you give them the quote from your anticipated lender, and sometimes they don't even ask that because they don't want to lose your account.

[Fastguy]

The score may drop slightly short term for a few reasons.
1. Recent credit inquiry.
2. New unseasoned account.
3. High balance to loan ratio.

I wouldnt worry about it though.

[syf350]

Yeah. Nothing worth worrying over. I'd try like Spence said and negotiate. If it don't work, make the move. Believe it or not, there are still humans on the end of the deal with somewhat rational minds that can see what happened and let it go. :cheers: