Auto Refinance Question?

Anonymous · ‎02-13-2009

New to the board!

I need to know how to start. I finance a auto loan though HSBC at 17.9%. I have made 24 payment on time. Purchased price $14,900 -- I owe $10800 and 48 payments. I have not applied to any to see if they will refinance and have planned to wait we are about to purchase a home in the next two or three months. Once that is closed and we are in our new home I want to refinance. Just want to get all me info infront of me so I can get the best interest rate I can.

My credit has impoved alot since my loan.

My Fico scores are TU 649 EQ 611 EX 698 as of 2/12/09

moondog7324 · ‎02-13-2009

I think you are smart waiting until after you get the house. I would join a credit union now, and put a small amount- lets say 50 a paycheck into the account- Create a good relationship with the CU and after you get everything settled with the house, try for a re-finance with the CU. One thing you might be able to do in the mean time is make bi-weekly payments(if HSBC allows it) If your auto loan is 400 a month - pay 200 every two weeks- you pay more towrds the prnciple and effectively reduce interest that way- you can also add a little bit to your loan payment each time. Good Luck. HSBC may not allow bi-weekly- I had them for awhile and I thinbk they wouldn't make a payment sooner that a week before the due date- taht way they maximize interest.

Anonymous · ‎02-13-2009

Thanks

I talked with my local credit union. I am a member and got some good info from them. They look at EQ to do the credit appoval. I have a EQ 611 score. To get a 11% I need a 620 -- to get a 8% I need a 660.

My other two scores are better TU 649 EX 698.

I only have two open accounts and both were autos. One I just paid last payment. Can someone tell me what I can do to get me EQ to go up. I would like to refiance this in about 5 or 6 months. It would be great to get to 660 but that may not be a option.

Past history - BR - 6 years ago. CC - Paid off but was CA- I settled and paid it over a year ago.

moondog7324 · ‎02-14-2009

Are you getting the house? If yes- I would do nothing drastic until that is approved- If no- get a credit card and keep the utilization around 10%- after 6 months you should see a nice bump in your scores- the credit mix, and another good account should help you.

Anonymous · ‎02-14-2009

I have ran my credit though a Broker and we were appoved for a FHA loan. She did tell me not to do anything until we find a house and close. So my plan is to get all of my info together so once the house closes I can start working to improve my EQ score. I want the 620 but really would like to get the 660.

Question? I noticed on EQ that I have a old account showing open. This was from the gas company and is showing (Currently 120 late). Account has $0 balance and the account has not been used since 2004 and I forgot it was even open. Can I call them to get this corrected?? Is this not causing me a ding on my score.

Anonymous · ‎02-15-2009

That is hurting your score. Probably more than you might think. You can try contacting the company but you may be better off filing with the credit bureau(Equifax).

Anonymous · ‎02-20-2009

Well I have a update. I called the OC that was showing me 120 Days Late on my EQ report. It showed a $0 balance and I was going to see if they would delete. To my supprise they showed a balance .89. This account was from 6 year ago.

Well a few phone calls and I finial got someone to call me back. There going to remove this form my CR. I was so happy I forgot to even ask how long it would take them to do this.

I ran my numbers on 2/9. My plan is to wait until March and run EQ again to see if it is cleared off.