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Refinanced auto loan


LeslieR
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Last week, thanks to the actions I"ve been able to take as a result of learning so much here, I was able to refi my subprime auto loan at a MUCH better rate with my credit union. Thanks, CIC!

My question is -- any ideas on how much my scores might improve over the next few months as a result of the paid loan and the added TL??

Thanks!

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Ficos were 543, 603, and 615 at the time of refi. If you're asking what they were when I "qualified" for Americredit's great terms...take a guess. I can only imagine they were in the tank around 500 or even less. I am living proof that there is a car loan, even a new car loan, for everyone.

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My question is -- any ideas on how much my scores might improve over the next few months as a result of the paid loan and the added TL??

That should be the least of your concerns. Admittedly, it sucks having low scores but the goal should always be the big picture, which is to ALWAYS exercise responsible credit behavior. Getting a boost in the short run is nice but your focus ought to be in the long run about the responsible credit behavior for the next few years.

But that was good move to get a dramatically lower interest rate.

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That should be the least of your concerns. Admittedly, it sucks having low scores but the goal should always be the big picture, which is to ALWAYS exercise responsible credit behavior. Getting a boost in the short run is nice but your focus ought to be in the long run about the responsible credit behavior for the next few years.

But that was good move to get a dramatically lower interest rate.

Wolf, thanks for the lecture, but what do you think I'm doing here? I would say that being able to refinance a loan in the manner in which (as well as the score increases I just mentioned, which have happened in three months as a result of work I've done), indicates that I've been working on the big picture pretty diligently. I'm now just a little eager to determine what the pay-offs of my hard work will be. Although scores are indeed unstable, these are the kinds of events that mean long-lasting improvements, and I'm anxious to see what they will be. Perhaps asking others to speculate is a bit frivolous, but that happens all the time on this board when people are anxious.

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