How soon did you refinance your auto loan? When you did, did the CU run hard inquiry on your credit again? I’m leaning towards doing the same, but I’m not sure if certain CUs have waiting times before they could actually refinance your existing auto loan. I would love to hear how did yours come about.
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Tesla suddenly changed loan bank and that caused increased rate 4% to 7%
- Thread starter Christmas
- Start date
Wasn’t long. I don’t remember the exact amount of days but Well before my 1st payment was do. Maybe a week? And no waiting time.
They did run a credit check as I had to unfreeze my credit accounts first.
Got it. I was actually under the assumption that credit bureau would treat the inquiry as one since it’s within 14-45 days. But, how many points did you credit change for the refinancing? And i would assume that then refinance rates would also be affected since you had your credit pulled recently.
I don’t believe my credit rating change that much. Never dropped below 800. Not sure how all that works though. I did get the best rate possible based on my credit score.
I appreciate the insight bro. I’m planning to the same once I take delivery next week. What CU did you use by the way?
At 7.49% you could be paying $12,000 to $15,000 more for the car. Depends on your down payment. That's crazy to pay $82,000 to $85,000 in total for MYLR. more for MYP. This is a 5 year, if you go longer you are paying even more. Could approach to $90,000.
Hopefully you can find lower rate. This is crazy to pay such a high interest rate.
Hopefully you can find lower rate. This is crazy to pay such a high interest rate.
ucmndd
Well-Known Member
They will definitely do their own hard pull, but the credit bureau algorithms these days treat multiple inquiries in a short amount of time as a single event (or close to it) and don’t penalize your score nearly as much.
I’ve done this a couple times in the past - it can be a relatively effective negotiating tactic with dealers. Let them finance the purchase for you and get the kickback from the bank for selling the loan, which may make them more willing to play ball on the variables that really matter to me (i.e. purchase price). Then refi out of the crappy dealer loan immediately.
Applications for car loans made within a two to three week timeframe show up separately, but get lumped together as one inquiry as far as all the credit scoring algorithms go, so they only ding you once. They expect responsible buyers to shop around for both car and home loans. If its over 30 days though it will ding you again.
Note that the above does not apply for credit card loans of any type. It applies for auto loans and mortgage loans. Credit cards always count separately.
With that being said, the "ding" lasts for 2-3 months, and wont matter at all for someone above 800 score. The "top of the top" rates normally come at > 760 score, so for anyone evaluating you for a loan, there isnt much difference in 825 and 795 (for instance).
Im not in the credit industry, but did a lot of looking into this stuff over the years as I wanted to understand how it worked, etc.
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