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    jlolide's Avatar
    jlolide Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Nov 9, 2008, 08:48 PM
    To refinance or not to refinance.
    So a couple years back, I had a co-signer sign with me on a vehicle loan solely for the purpose of getting approved since my credit was good but brand new.

    I've made all payments faithfully up to now and continue to do so, as well as send extra to the principal.

    I'm ready to work on building my credit as fast as I can, I'm wanting to upgrade to a luxury vehicle sometime soon and want to have an impressive credit score to show off wherever I decide to shop.

    The co-signer is a family member (don't know if that's relevant)

    My question is - Should I refinance my current loan to get it completely on to my credit? Will it improve my score or will it hurt me when I go apply for another loan to cover the vehicle Im looking to get?
    Justwantfair's Avatar
    Justwantfair Posts: 3,422, Reputation: 944
    Ultra Member
    		  
    #2

    Nov 10, 2008, 01:01 PM

    It should help your score, how long will you be waiting before buying a new vehicle? Will you be upside - down (owe more than the car is worth when you trade it in)?
    jlolide's Avatar
    jlolide Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Nov 10, 2008, 01:13 PM

    well, the goal is (if I decide to trade) to be even on my loan balance and the worth of my current vehicle.

    Or I was also looking at possibly getting a new loan for the vehicle I want, being it that I don't honestly think the value of my current car would help much on the trade in.

    suggestions?
    jlolide's Avatar
    jlolide Posts: 3, Reputation: 1
    New Member
    		  
    #4

    Nov 10, 2008, 01:15 PM
    I was thinking of leaving the loan on my name for a while (say 6-12months?) or at least long enough to significantly improve my score... I don't know if that's the way it works?
    Justwantfair's Avatar
    Justwantfair Posts: 3,422, Reputation: 944
    Ultra Member
    		  
    #5

    Nov 10, 2008, 01:17 PM

    That is the way it works and it is a smart idea to help build your score when you are a new with credit.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #6

    Nov 10, 2008, 01:42 PM

    It depends, was the relative a co-signer or a co-borrower? If the loan is in your name with the relative listed as co-signer or guarantor, then refincing will not materially affect your credit.

    However, if they are a co-borrower, then getting the loan into your own name and making payments will help your score.
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