Refinanced auto loan, old account closed new one opened with same debt but credit score dropped 60+
AJ J Asked: Refinanced auto loan, old account closed new one opened with same debt but credit score dropped 60+
I refinanced my 60 month auto loan which was at 6% to 3% at the 20 month mark to save myself some money. I refinanced with a new bank and the terms are now 40 months (but since I paid 20 months into the 60 month term the balance and payment is pretty close to the old account). I subscribe to transunion and can see my accounts/credit scores. I noticed when the old account was “removed” and new account “added” my credit score dropped about 60 points instantly!! The debt did not increase, it actually is getting lower every month as I pay my auto debt. Why did the act of refinancing drop my score so dramatically? This is from the official transunion site using vantage score (dropping form 820 to 760 approx). Is “opening” the new refinanced account making it look bad? Shouldn’t the “closed” account be seen as a transfer and not like I am losing and adding accounts in just a few days?
I though refinancing was actually good not just to save money but for your credit score too since it adds a mix of installment credit?
I was just wondering as I was not expecting a 60 point drop in 1 day due to refinancing and having the same number of debt.
Answers:
A Hunch Answered:
Based on your description, it’s because you lost payment history.
When you say “removed” the old loan, no longer shows on your credit report?
– it’s not listed as “paid in full” or “closed by XYZ”?
What i would have expected:
OLD loan – classified as “paid per agreement”, “paid in full, “closed by customer or lending institution”
New loan would appear as a new loan with one month of payment history.
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Categories: Loan Questions Tags: Andrian Ramirez, John Herod Answered, loan, loans
I need help with this question please..?
Rain Yang Asked: I need help with this question please..?
Emma decides to buy a home entertainment system costing $5000. She takes out a loan from her Credit Union for the full cost of the system. The loan is based on a reducing balance interest rate of 10.5% pa with equal monthly installments for three years.
a.) find the size of each repayment for the loan.
b.)Hence find the total paid for the Entertainment System and the amount of interest paid.
c.) after two years,Emma finds that she is in a position to pay off the loan in full.How much does she still owe the bank after two years?
d.)How much does she save by paying off the loan early?Would you advise Emma to pay off the loan early?
Answers:
Tharaka Jayalath Answered:
a) 5000/36 X 110.5/100 = 153.47
b)153.47 X 36 = 5524.92
c)153.47 X 24 = 3683.28
d)524.92
yes
a) 5000/36 X 110.5/100 = 153.47
b)153.47 X 36 = 5524.92
c)153.47 X 24 = 3683.28
d)524.92
yes
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Categories: Loan Questions Tags: loan, Mr Richard Success, Rain Yang Asked, Yours Sincerely
Installment loan of $1,500, pay back in 18 months
Anna Asked: joseph alexander obtained an installment loan of $1,500. he agreed to repay the loan in 18 monthly payments.
The finance charge is $146.25. what is the APR?
Answers:
Scott B Answered:
9.75%
9.75%
Divide the finance charge (interest paid) by the amount financed to get your percentage.The actual calculation comes to .0975, but you have to multiply that by 100 (move decimal point 2 places to the right) to get the percentage.
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Categories: Loan Questions Tags: Anna Asked, loan
Can I payoff my car loan at once and get good credit score?
V Asked: Can I payoff my car loan at once and get good credit score?
I bought/financed my car about 2.5 years back and since then I am paying car’s payment on a monthly basis (regularly). The car loan is for 5 years.
Now I want to pay off the car loan as soon as possible but at the same time I want to get a good credit score increment because I was regular at all my payments.
The question is:
1) Shall I pay all the remaining amount at once (which is equal to 2.5 years of payments) or shall I pay it in 3-4 equal installments?
2) What happens when you payoff the car loan? I mean when you can get the car’s registration certificate?
Please advice. Have a good day!
Answers:
John Jones Answered:
NO, they like to see history, so keep paying.
Huntsman Answered:
Installment loans build credit by making payments over time. You have to pay on car loans for at least 12 to 18 months to do much for your credit/score. Paying off the loan early will do nothing to improve your credit/score. It will save you a lot of interest though. Sometimes you should think with your pocketbook and not worry about a few points to your score.
Your payoff on that car loan is a lot less than 2.5 years of payments. You don’t have to pay the interest on those 2.5 years. Call your lender and ask for the payoff balance. Pay that and save all that interest.
When you pay off the car, the lender will release their lein and you get clear title to the vehicle.
Ronald S Answered:
If you can afford to get it over with now, do it. You will see a bigger effect on your credit score from the fact you paid off the loan and now owe less money, than from the extra payments. All you’ll get out of four more payments is the privilege of paying more interest.
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Categories: Loan Questions Tags: Huntsman Answered Installment, loan, loans
I am looking for a lender who loans funds to those with bad credit and not a payday loan
Michael Asked: I am looking for a lender who loans funds to those with bad credit and not a payday loan.
My credit is bad and have only been on my job for 3 months. I am trying to borrow $2000.00 to be re-payed in monthly installments. I am not interested in payday loans. If I can get a loan in this amount, it will financially put me back on track. I will be able to afford notes between $150.00 and $200.00 per month.
Answers:
Huntsman Answered:
You are about to get about 50 responses (answers) of online loans.
Careful.The online loan scam is very, very simple to operate.
If you fall for it, it will make you cry for days.
Stop by your local small banks and credit unions.
If they turn you down, everyone else will.
You are about to get about 50 responses (answers) of online loans.
Careful.The online loan scam is very, very simple to operate.
If you fall for it, it will make you cry for days.
Stop by your local small banks and credit unions.
If they turn you down, everyone else will.
Note:For any personal loan you will need employment for at least 1 full year
MVD34 Answered:
To put it bluntly:that just isn’t the way the world of banking and credit works.
To put it bluntly:that just isn’t the way the world of banking and credit works.
Payday lenders and the like exist for people with bad credit because everyone else (“the banking industry”) refuses to lend to subprime borrowers in all cases.
The only reasonable exception to the rule is a credit union.However, if your FICO score is below 620, you won’t be able to get an unsecured loan from them either.
Ed Fox Answered:
No chance.
Would you really loan money to someone with a poor record of paying back?
No chance.
Would you really loan money to someone with a poor record of paying back?
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Categories: Loan Questions Tags: get a loan, loan, loans, Michael Asked
Where do I apply for Student Loans for Fall 2011?
Ay000000 Asked: Where do I apply for Student Loans for Fall 2011?
So I’m starting college in the fall and I just applied for FAFSA last week. Since the first half of payment is due August 15th, I need to go find a loan agency.
I have to pay 20,000 dollars by August 15th, so I need to apply ASAP. Where do I go? Is there anywhere online I could get an application?
I need a loan for 10,000 this semester that I don’t have to pay until after graduation and then 10,000 that is spread out through 4 monthly installments. And then I have to repeat it next semester, or do I get enough for the whole year? In that case, I need 20,000 each.
Answers:
just not that Answered:
Filling out the fafsa is the beginning process of taking out a student loan.Your school acts as the lender, you do all your paperwork through them and the money that you borrow goes directly to them.Unfortunately for you, (who apparently hasn’t been paying attention) most folk who are starting school in the fall did their fafsa back in Feb.You are incredibly late and not likely to get your paperwork done in time for payment.
This is unfortunate for you… as success in college requires planning and responsibility.It may be you may need to set out a semester, unless of course, you have 10,000 laying around the house or in your bank account.If you don’t, then you may need to wait until after Christmas to enroll for the spring semester.
Filling out the fafsa is the beginning process of taking out a student loan.Your school acts as the lender, you do all your paperwork through them and the money that you borrow goes directly to them.Unfortunately for you, (who apparently hasn’t been paying attention) most folk who are starting school in the fall did their fafsa back in Feb.You are incredibly late and not likely to get your paperwork done in time for payment.
This is unfortunate for you… as success in college requires planning and responsibility.It may be you may need to set out a semester, unless of course, you have 10,000 laying around the house or in your bank account.If you don’t, then you may need to wait until after Christmas to enroll for the spring semester.
Federal loans (by filling out the fafsa) do not require a credit check or a cosigner… but there is a limit on the amounts you can borrow on your own.dependent freshman can only borrow up to 5,500 a year.AYEAR… and it sounds like you need more than this at the school you are considering.Without a parent or a cosigner willing to borrow for you, you may need to find a better (cheaper) more Realistic school.
Again, those who succeed spend a year or more getting their plans together to start school (esp one that expensive).Waiting til the last minute is a guarantee you will surely fail (or starve to death or die of EXPOSURE when you are homeless college student).
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Categories: Loan Questions Tags: AYEAR, EXPOSURE, Johny Answered, loan
What are the estate tax effects of an installment loan?
Mary Ortega Asked: What are the estate tax effects of an installment loan?
One of my clients want an installment loan for their son. What are the tax effects of a note released through my client's will or trust? What would the tax effects be if the note is released in the loan agreement at the death of my client?
Answers:
Max Hoopla Answered:
There are too many variables for an answer in 25 words or less.This is a problem for an estate planner not a free quickie answer.
There are too many variables for an answer in 25 words or less.This is a problem for an estate planner not a free quickie answer.
tro Answered:
your question is most confusing, are you asking if an installment note can be issued to a son thru the trust of the parent?
this is probably more a legal question than one of taxes, and it would seem to me that the trust is not in the position of making such a contract but the terms of the trust would need to be accessed
your question is most confusing, are you asking if an installment note can be issued to a son thru the trust of the parent?
this is probably more a legal question than one of taxes, and it would seem to me that the trust is not in the position of making such a contract but the terms of the trust would need to be accessed
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Categories: Loan Questions Tags: loan, Mary Ortega Asked
Auto loan after a Chpt 7 BK?
svtmicah Asked: Auto loan after a Chpt 7 BK?
I'm trying to build and establish new good credit and have begun with 3 credit cards and an installment loan that is nearly finished. My scores have went up and it looks that I'm accomplishing something. 2 things, I need a car and want to wait another 6 months hoping that I can get a loan ($18-22K) with a decent APR.I'll be 2 years out from the discharge at that point. Does anyone have a suggestion on how to approach this accordingly, I tried to get an account with a credit union but unfortunately because of the BK or a Chexsystems report I've been denied. I'm looking for suggestions not criticism of the unknown circumstances that forced us into bankruptcy, Honest legal opinions are appreciated.
Answers:
Frasiscuss James Answered:
MY NAME IS FRANSISCUSS JAMES AND AM A CITIZEN OF GERMANY. I WAS PASSING THROUGH FINANCIAL STRESS WHICH ALMOST RUIN DOWN MY COMPANY. I ALMOST GAVE UP UNTIL I SAW AN ADVERT BY ONE ENGINEER RAJU WHO TOLD ME ABOUT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail). AT FIRST I THOUGH IT WAS A JOKE BECAUSE I HAVE APPLIED FOR LOAN FOR THREE DIFFERENT FIRM BUT NOTHING GOOD CAME OUT OF IT. I SAY TO MY SELF THAT I SHOULD JUST RISK IT FOR THE LAST TIME BUT TO MY GREATEST SURPRISE MY LOAN OF $2,000,000 WAS GRANTED. AM ADVISING ANY BODY THAT IS LOOKING FOR LOANCONTACT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail.com)
MY NAME IS FRANSISCUSS JAMES AND AM A CITIZEN OF GERMANY. I WAS PASSING THROUGH FINANCIAL STRESS WHICH ALMOST RUIN DOWN MY COMPANY. I ALMOST GAVE UP UNTIL I SAW AN ADVERT BY ONE ENGINEER RAJU WHO TOLD ME ABOUT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail). AT FIRST I THOUGH IT WAS A JOKE BECAUSE I HAVE APPLIED FOR LOAN FOR THREE DIFFERENT FIRM BUT NOTHING GOOD CAME OUT OF IT. I SAY TO MY SELF THAT I SHOULD JUST RISK IT FOR THE LAST TIME BUT TO MY GREATEST SURPRISE MY LOAN OF $2,000,000 WAS GRANTED. AM ADVISING ANY BODY THAT IS LOOKING FOR LOANCONTACT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail.com)
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Categories: Loan Questions Tags: APR, BK, loan
Looking for a good Auto loan in 6 months … Chpt 7 BK?
svtmicah Asked: Looking for a good Auto loan in 6 months … Chpt 7 BK?
I'm trying to build and establish new good credit and have begun with 3 credit cards and an installment loan that is nearly finished. My scores have went up and it looks that I'm accomplishing something. 2 things, I need a car and want to wait another 6 months hoping that I can get a loan ($18-22K) with a decent APR.I'll be 2 years out from the discharge at that point. Does anyone have a suggestion on how to approach this accordingly, I tried to get an account with a credit union but unfortunately because of the BK or a Chexsystems report I've been denied. I'm looking for suggestions not criticism of the unknown circumstances that forced us into bankruptcy, Honest legal opinions are appreciated.
Answers:
Frasiscuss James Answered:
MY NAME IS FRANSISCUSS JAMES AND AM A CITIZEN OF GERMANY. I WAS PASSING THROUGH FINANCIAL STRESS WHICH ALMOST RUIN DOWN MY COMPANY. I ALMOST GAVE UP UNTIL I SAW AN ADVERT BY ONE ENGINEER RAJU WHO TOLD ME ABOUT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail). AT FIRST I THOUGH IT WAS A JOKE BECAUSE I HAVE APPLIED FOR LOAN FOR THREE DIFFERENT FIRM BUT NOTHING GOOD CAME OUT OF IT. I SAY TO MY SELF THAT I SHOULD JUST RISK IT FOR THE LAST TIME BUT TO MY GREATEST SURPRISE MY LOAN OF $2,000,000 WAS GRANTED. AM ADVISING ANY BODY THAT IS LOOKING FOR LOANCONTACT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail.com)
MY NAME IS FRANSISCUSS JAMES AND AM A CITIZEN OF GERMANY. I WAS PASSING THROUGH FINANCIAL STRESS WHICH ALMOST RUIN DOWN MY COMPANY. I ALMOST GAVE UP UNTIL I SAW AN ADVERT BY ONE ENGINEER RAJU WHO TOLD ME ABOUT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail). AT FIRST I THOUGH IT WAS A JOKE BECAUSE I HAVE APPLIED FOR LOAN FOR THREE DIFFERENT FIRM BUT NOTHING GOOD CAME OUT OF IT. I SAY TO MY SELF THAT I SHOULD JUST RISK IT FOR THE LAST TIME BUT TO MY GREATEST SURPRISE MY LOAN OF $2,000,000 WAS GRANTED. AM ADVISING ANY BODY THAT IS LOOKING FOR LOANCONTACT FINLAND MICRO FINANCE LTD (finlandmicrofinanceltd@gmail.com)
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Categories: Loan Questions Tags: APR, BK, loan
Financing math problem?
Liz Gonzalez Asked: Financing math problem?
1) Jack wishes to purchase a used car that has a price of $12,000. The installment terms include a down payment of $3000 and 48 monthly payments of $224
a. What finance charge will jack Pay?
b. What is the APR to the nearest half percent?
2) Karen is purchasing a brownstone townhouse in Brooklyn for $1,750,000. The mortgage broker she is working with is requiring her to make 15% down payment. The current mortgage rate is 6.0%
a. Determine the amount of the required down payment
b. Determine the monthly principal and interest payment for a 25 year loan with a 15% down payment
3) Stacie is purchasing her first home for $275,000. She is obtaining an FHA mortgage through her credit union and is required to make a 3% down payment. The current mortgage rate is 7.5%
a. Determine the amount of the down payment
b.Determine the monthly principal and interest payment for a 30 year loan with a 3% down payment
Answers:
Sammy Braden Answered:
You got me… Hi, I found a link where u can try. http://yourcares.info/429513/financing
You got me… Hi, I found a link where u can try. http://yourcares.info/429513/financing
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Categories: Loan Questions Tags: APR, FHA, loan, Sammy Braden Answered