Refinance Auto Loans Homepage

Question: Does refinancing an auto loan have a positive effect on your credit?

(Posted by: Jason A on 2008-01-11 17:29:04)

I am in the process of rebuilding my credit. I was able to get approved for an auto loan with HSBC auto finance, but at a very high interest rate. I refinanced with Citifinancial for a significantly lower rate. My credit report now shows my HSBC account as paid/ closed/ never late. Even though the loan was not paid in full by me, but bought by Citifinancial, will this still have a positive effect on my score? or will it stay the same.

Posted by: SPIFIMAN1 on 2008-01-12, 09:36:21

Auto finance is what I do for a living and it a lot of it will depend on how many payments you made before you refinanced. If you made at least 12 it will help a lot, if you made less then 12 it will still help but not significantly.

Posted by: SuperCactus on 2008-01-11, 17:33:02

You should get a small bump up, since it shows "never late ".

Posted by: kevinmac9999 on 2008-01-11, 17:59:48

Refi has no effect. lenders buy and sell all the time, even without your permission. taking the loan to someone else will just remain flat on your credit.