Keeping a good credit score is something we all want to maintain, and with a little bit of common sense and financial knowledge, it can be done. When discussing RV refinancing, the most common question on people’s minds is whether it will affect their credit score. The short answer is yes it can, but how much depends on where your credit currently stands along with how you go about the refinance. Refinancing your RV can be done with minimal changes to your credit score if you follow some simple tips.
1. Accurately gauge your current credit report.
The score reflects what you have in your report whether that’s delinquencies, excessive obligations, missed payments or debt collections. It’s easy to see a score and think that is all you need. However, checking what is in your report is just as essential. Everyone has access to an annual credit report. The FTC webpage gives you straight forward information on how to obtain these free reports from the three consumer credit reporting companies: Equifax, Experian and TransUnion. Each report will have slight differences as creditors may or may not report to all the agencies. Check your report for discrepancies, and work to resolve them before you apply for an RV refinance. Jumping the gun to refinance without knowing what you’re working with is not a smart financial move. Specifically, you need to look at how many hard credit inquiries you have in your report. Creditors typically do what is called a hard pull of your report before they refinance loans. A small amount of inquiries spread out over two years (the length of time an inquiry remains on your report) typically won’t affect your score in a big way. The FTC has good information on this to help you stay informed. However, a significant amount of inquiries over a short amount of time will raise red flags. RV refinancing will typically be a hard pull on your credit report.
2. Once you determine your credit worthiness, research you’re possible refinance options well before you apply.
Going through multiple applications to find that lenders use different sources for researching your credit will only further affect your credit through these hard pulls. Research carefully, and be realistic. The most important thing for you to do is to know where you stand. If you are in a good place financially to refinance your RV, do your due diligence to make sure you have everything you need before you start the application process. Talk to the lender and ask the questions about the terms and conditions and its effect on your credit score.
Getting a good rate on an RV refinance loan with minimal credit impact is possible, but it must be done thoughtfully. Knowing thoroughly your credit history and factors that will affect your RV loan will be important to maintaining a good credit score throughout the loan refinance process. It will ensure you get the best rate with the least credit score impact possible.
Bonus Tip: Make sure you are getting the best rates possible by using our RV loan calculator.
Contact us today and find out how we can help you with all of you refinancing needs today!