Can I refinance?

[Anonymous]

I'm new the forum and on my quest to clean up my credit I've been considering refinancing my car. I currently have a 24% interest rate (tragic!) and currently owe around 11,100 on the car. However, I'm upside down by I guess a few thousand and my vehicle is a 2006 model with 93,000 miles on it. My credit has improved as I only have 2 negatives on EQ and EX and one on TU. I thought I would see a vast improvement in my credit score but the deletion of negatives and my utilization has dropped my score. I'm working on my utilization to see if my score will improve then. Is it even likely that I will be approved by anyone with the year and mileage of my car? What lenders to look into?

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@Anonymous wrote:
I'm new the forum and on my quest to clean up my credit I've been considering refinancing my car. I currently have a 24% interest rate (tragic!) and currently owe around 11,100 on the car. However, I'm upside down by I guess a few thousand and my vehicle is a 2006 model with 93,000 miles on it. My credit has improved as I only have 2 negatives on EQ and EX and one on TU. I thought I would see a vast improvement in my credit score but the deletion of negatives and my utilization has dropped my score. I'm working on my utilization to see if my score will improve then. Is it even likely that I will be approved by anyone with the year and mileage of my car? What lenders to look into?

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Welcome to the forums !

In order to refinance you'd need to or bring money to the table /  pay down your loan to its approximate book value.  Or you might have luck with lenders who'll do 110% or 125% LTV -- I'd start looking around at local banks / CUs to see what they can offer.   Any ideas where your FICO scores are?

[Anonymous]

That's what I was afraid of. I fear that it will be a while before I will catch up with the current retail value and by then my car will have excessive mileage and no one will refinance it. I'm not for sure regarding my score but I signed up for credit karma and received a score of 600. I assume it dropped due to my negatives being deleted which added length to my credit history. Prior to that I was high 600.

[pizzadude]

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@Anonymous wrote:
That's what I was afraid of. I fear that it will be a while before I will catch up with the current retail value and by then my car will have excessive mileage and no one will refinance it. I'm not for sure regarding my score but I signed up for credit karma and received a score of 600. I assume it dropped due to my negatives being deleted which added length to my credit history. Prior to that I was high 600.

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Well it's hard to know how you'll do with a refi not knowing your FICO scores, but IMO it's worth a shot to get out from under that interest rate.

I'd ask around for lenders who'll do 110%LTV and up.

[Anonymous]

I understand. I'll begin to search. Thank you for your help.