For those who have re-financed

Discussion in 'Credit Talk' started by Killer, Jan 5, 2001.

  1. Killer

    Killer Guest

    Once you have re-financed does your original loan show as paid on your credit reports? If your old one shows as paid and a new one is added, this probably helps your score?
     
  2. marci

    marci Well-Known Member

    RE: For those who have re-fina

    Hi Killer,

    The old loan shows as high credit _____ (what I originally paid for the car)/ balance 0. It doesn't say "paid" or otherwise. It is also technically still "open". The new loan shows high credit for the amount re-financed and the balance at the same amount (I just refinanced two months ago).

    I'm concerned because in terms of current balance:eek:riginal balance ratio, I am back at nearly 100% now, thanks to the way it is being reported. It looks like I paid off a huge loan in two years and then went out and got another huge loan - which *is* what I did contractually, but FICO doesn't account for a refinance by retaining the original high balance but rather makes me look credit / car greedy.

    If I can, I will try to get the CRA's to report the original high balance on the new loan to reduce my current balance:eek:riginal balance ratio.

    Marci
     
  3. Killer

    Killer Guest

    RE: For those who have re-fina

    What if the original loan was reported as a zero balance and closed? Wouldn't this help especially if it also said "never late" or "pays as agrees". In other words, paid-off and was "I1".
     
  4. marci

    marci Well-Known Member

    RE: For those who have re-fina

    I don't know, Killer, if it helps to make sure a paid installment (I1) account reflects "closed". I asked that exact question a few conversations below re "paid off car loan and CRA reporting" and got differing responses.

    I think I will request that my old account reflect "closed" just to be safe and to show that the installment was "closed end". I'll also request to the CRA's that the new account reflect the original high balance, if I can get away with it (though I'm unsure since the new loan is contractually for the amount being reported now). I just hate what the ratio may do to my credit score. :-(
     

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