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Is it worth it to refi for 1% less? Or, should I wait for something better?

New Visitor

Is it worth it to refi for 1% less? Or, should I wait for something better?

Background: Had a ch7 BKcy in early 2016. Got an auto loan for 8.9% july 2017 through ally (only bank that would approve me) for 75 months. Did this at hyundai dealership for an elantra.

Today: Got pre approved for refinance through capitol one at 8.02%.

Is this even worth it? Are there fees involved like there is when refi a house? Should i just wait and find something better?

Also i applied for refi through US bank but they are currently reviewing it. Maybe theyll come back with a better rate?

Based off KC:
Equifax score: 699
Trans U score: 650
Message 1 of 11
10 REPLIES
Established Contributor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?


@wrote:
Background: Had a ch7 BKcy in early 2016. Got an auto loan for 8.9% july 2017 through ally (only bank that would approve me) for 75 months. Did this at hyundai dealership for an elantra.

Today: Got pre approved for refinance through capitol one at 7.02%.

Is this even worth it? Are there fees involved like there is when refi a house? Should i just wait and find something better?

Also i applied for refi through US bank but they are currently reviewing it. Maybe theyll come back with a better rate?

Experian score: 699

Where is the 699 score from? What are your other scores?

 

The Capital One offer is actually close to 2% less . . but if you are truly sitting at 699, I would think you could do even better. Look into DCU and PenFed. Also NFCU if you have a way in.

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving
Message 2 of 11
New Visitor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

Sorry correction, equifax, not experian: According to credit karma (i know its just a rough estimate):

equifax 699
transU. 650
Message 3 of 11
Frequent Contributor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

If those are your true Fico scores I would try NFCU/Penfed/DCU to refinance as they should be able to beat your current rate and the Cap One rate. However in regards to US Bank, from my experience they will not touch anybody for auto lending with a BK on their reports. I have seen folks who are 2 month's away from their BK falling off get auto declined from US Bank due to BK on report.

AMEX BCE ($39,500) CITI AAdvantage ($18,500) Region's Platinum Card ($14,400) Discover IT ($13,000) Macy's ($7,500) Chase FU ($10,000) TU:768 EX: 767
Message 4 of 11
New Visitor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

NFCU/Penfed/DCU ...

Is it easy to apply with these places? Would they give me an immediate response like C1 did?
Message 5 of 11
Frequent Contributor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

I'm not sure about immediate, but you will get an answer rather quickly (within a couple business days.) NFCU will require you to be eligible for membership via a family member or one of the other ways. PenFed can be joined by donating to an organization one time to make you eligible, and I haven't looked into DCU to see what they require for membership.

AMEX BCE ($39,500) CITI AAdvantage ($18,500) Region's Platinum Card ($14,400) Discover IT ($13,000) Macy's ($7,500) Chase FU ($10,000) TU:768 EX: 767
Message 6 of 11
New Visitor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

Sorry guys another correction: C1 is only approving 8.02%. I read it too fast.. Guess that really wouldnt be worth it!
Message 7 of 11
Frequent Contributor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

May not be worth the hassle through Cap One, but I would definately check around and see if any of the CU's I suggested can help you lower it. You may very well be able to lower the rate, and term while remaining at the same payment and saving hundred's if not thousand's in interest throughout the duration of the loan.

AMEX BCE ($39,500) CITI AAdvantage ($18,500) Region's Platinum Card ($14,400) Discover IT ($13,000) Macy's ($7,500) Chase FU ($10,000) TU:768 EX: 767
Message 8 of 11
Established Contributor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?


@wrote:
Sorry correction, equifax, not experian: According to credit karma (i know its just a rough estimate):

equifax 699
transU. 650

You need to get your real scores. 

 

Credit Karma will have me in the 740s sometimes and my true FICOs have never broken 700.

 

Also, what all is going on with your profile? It's crazy important for us BK'ers to be optimized with at least 3 credit cards (two reporting a $0 balance, one reporting less than 9% of the limit) and an installment loan.  You have to get this precisely right in order to get the best rate possible.

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving
Message 9 of 11
New Visitor

Re: Is it worth it to refi for 1% less? Or, should I wait for something better?

I have 4 credit cards. 1 has a balance of $100 and the other $86. All the rest $0.

My total Avail Credit limits on these cards amount to about $8500.
Message 10 of 11