I just recently purchased my first car. The interest rate is extremely high and the car is only 1 year old with almost 60,000 miles. I want to trade it in for another used car after keeping this one for 6 months, would this decision hurt or help my credit score?
Trading this vehicle will have no effect on your credit score. The only effect would be in your debt to income ratio if you increase the amount of the loan to cover the new vehicle. The issue for you is how much do you owe on the vehicle as opposed to it's wholesale value and what will this do to your ability to actually finance the new vehicle.
〉 Answered on Jun 17th, 2008 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)