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Posted in Auto Loans
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Question By
kendal38

1 Contribution
0 People Helped
was upside down on trade in bought new car since credit is now excellent they rolled the negative
equity into my new loan what have I done but either way it goes couldn't get out of existing loan they paid off my debt and im driving the dream car but at what price. will this affect my credit score which I work so hard for years on

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Top Contributor
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From credit scores prospective, the negative equity in itself has little to no influence on the credit scores, in your situation, your scores would be affect by paid off/closing one loan and start a brand new loan plus inquiry(s) and possibly taking on more debt. If you already signed the paper? then it's bit late to be concerned over the scoring effect on whats already been done. The scores will recover in due time.

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Of corse here comes the preaching part, from the financial prospective, it would be much better for your pocket book if you wait till you paid off the old loan, the moment it's paid off? It not only no longer have negative equity, you gain good amount of equity, but that's the "price" we pay for wanting it now.

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