Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
PhilGuyTheSilentFly

0 Contributions
0 People Helped
[Auto Loan] Refinance after 1 year or continue for remainder?
Hello,

I've had an auto loan for about 4 months now, some details:

Used car
11.75% interest rate
15k principal

Currently, I pay about $330 a month. This seems a little high, but considering I don't really have much as far as credit goes, I figured I'd just wait it out.

My question being, if I were to re-finance the loan after a year to lock in a lower interest rate, it would drop my monthly payment by say, $50. Which is cool.

The problem I foresee however, is that I would essentially "lose" that 1 year of auto loan payment history from my credit. And the remainder of what's now the new loan is all I would have.

Should I just eat that $50 and wait out the loan?

tl;dr Refinancing after 1 year, do I lose that year of credit history?

Thanks for your help!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
3051 Contributions
2791 People Helped

If you re-fi, you won't lose the 1 year of auto loan payments, that will still appear on your report.  Closed accounts stay on your report for 7 years, so it's a non-issue.  Re-fi!!

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.