I just refinanced my auto loan 2 months ago from 22% to 18%, I think i can get a better rate now. Should I do it or would this hurt my credit? thanks for the help... score went from 590 to 655 now in two months!! (after 1 year of hard work!!)
How often is refinancing an auto loan acceptable?
Every time you fill out an application, your score takes a ding. However, showing a paid off car loan would bring your score up.
The problem with refinancing your car loan is that you keep extending the term and are racking up more interest charges overall. If you can really find a substantially better interest rate, consider shortening the term. Your payment might stay about the same amount but you'd pay off the loan a lot sooner.
By the way, I simply cannot imagine paying even 18% interest on a car loan!
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