Is too much new credit going to hurt my credit??? Pls help? - Credit Forums

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Forums / Public / Credit / Is too much new credit going to hurt my credit??? Pls help?

Author	Message
BadIan Members 604 posts Location: Fiji Occupation: Botanist Age:	#299069 2008-05-19 13:12 GMT
	I am attempting to re-establish my credit... All my credit cards have been closed and paid in full for about a year...all I have now is an auto loan..I applied and was approved for a credit card with a $1,000 limit...I also was approved for a personal loan for $2,500 for a year...I want to refinance my car because it's at 16% and $442.60 monlthy!!!! My question is that with the two new accounts (credit card, and loan) if I try to refinance my car will this drastically hurt or should I wait? FYI I am not trying to get back into the same situation I am simply trying to get some open credit and re-establish what I ruined as a teen..I now know how important maintaining a good credit history is...and I also now have a very good income to keep up with this...I say this because some answerers will say why would you want to get back into the same situation!!


Rocky Members 582 posts Location: Macedonia Occupation: Geophysicist Age:	#299070 2008-05-19 13:32 GMT
	I don't think that refinancing your car will drastically hurt your credit because what you are utimately doing is closing one account and opening another just like it. If you were opening several credit cards and having several credit checks done on your credit report, this would drastically hurt. You should be fine to refinance your car. At that rate, you definately should!

TheFly Members 575 posts Location: Ireland Occupation: Waiter Age:	#299071 2008-05-19 13:59 GMT
	Having too much credit doesn't hurt your score, it's the percentage of the amount you owe compared to how much credit access you have. I agree I would refinance your car loan, 16% is outragous! This is a good article on maintaining your credit. http://www.monitorbankrates.com/how-to-build-maintain-and-repair-your-credit

TochaTocha Members 548 posts Location: Malawi Occupation: Construction manager Age:	#299072 2008-05-19 14:04 GMT
	The more you apply for and receive new credit, the more inquiries and accounts you'll have. People get turned down for addtional credit if they have applied or opened too many new accounts within two years. This is not to be confused with having too much credit though; lenders just want to be careful about how often credit is extended so that they face less defaults. If you haven't applied for credit very many times in that period and you are selective in the choices of banks you apply for refinancing with, then you should try it; $442 is ridiculously high. And everyone should have a credit card - for (re)building credit or emergencies. Good luck.

StreetRacer Members 551 posts Location: Belgium Occupation: Archaeologist Age:	#299073 2008-05-19 17:09 GMT
	Get that car loan down, it will help not hurt. Just stay on top of things. Sounds like you are coming up in the world. Keep up the good work girlfriend. How is that baby doing? Jk

Piramidy Members 631 posts Location: Lesotho Occupation: Enologist Age:	#299074 2008-05-20 11:24 GMT
	Since you are trying to re-establish your credit, you might find it a little difficult to refinance your car, but at 16% you should be able to find something lower. You said that you have some good income, which is plus. But they will also look at your credit in full and the value of your car versus what you owe. With all that said, it's definitely worth a try. If you send us an application, we'll pull your credit once and send it to all our lenders and get you the best deal. That way you have to shop less.