Question:
The reason I'm considering it is because the bank I'm paying is out of state, and I have made a couple of late payments, however I wouldn't have if I could have gone to a physical location of the bank to make the payment. I would normally just set it up to automatically deduct from my account, however, due to other circumstances this is not possible and there's no way around it.
So I'm just wondering if switching lenders could hurt my credit, or do some other financial damage that maybe I'm overlooking.
Answers:
Simple answer is yes. You don't pay interest upfront in a auto loan. Hopefully the few missed payments wont hurt your credit but depending on the bank and how late you were it shouldn't. Refinancing with good credit will never hurt and you don't pay interest upfront in auto loan like you would in home loan. Go for it, try credit unions near you for better rates.
in order to switch you would take out a new loan to pay the first. Shouldn't hurt your credit.
Switching lenders wont hurt your credit as much as the late payments will. Lenders only list your payment history in your credit report, and whether the account is active or not. The report WILL list the payments as late, which will damage your credit rating. If it will prevent this by changing to another lender, then by all means do so.
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