I’m looking at refinancing the car I just bought. I’m pretty sure my bank (USAA) can offer a better deal than the dealer-recommended credit union.
One of the questions they ask is if you got this loan (the one you’re trying to refinance) in the last 30 days. Why do they care about this?
Maybe it takes up to 30 days for a loan to get recorded on the title to the car?
WAG: Because most businesses report their accounts receivable monthly. Thirty days allows time for the loan to appear on your credit report.
EDIT: Most businesses that report their a/r data, that is.
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Was the original loan for a new car that you just bought? If so, there is usually a 30-day limit to refinance the vehicle as a new car loan. This is significant because loan interest rates are lower for new cars as compared to used cars.
After 30 days, you may be required to refinance your car using used-car rates. In other words, after 30 days, your new car has turned into a used car – at least as far as the lender is concerned.
This is actually generous on the lender’s part. The car dealer considers your vehicle to be a used car the instant you drive it off the lot. 