I have a car loan through GMAC that expires next July (2005). My car now has 95,000 miles on it as I do a lot of busiiness mileage. I am thinking about trading for a new or newer used car now while the car runs well. I am looking to buy a house in September and am concerned that this new loan will have a negative effect on my scores. Will one loan just cancel the other out? Advice is greatly aprpreciated. Jim
I imagine a temporary hit of 3 - 9 points for the inquiry. The rest may depend upon your total credit usage and what percent of those credit lines you are using. Starting a new loan and paying off the old should not be too detrimental.
