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Member
FLTeachK12
Posts: 13
Registered: ‎12-29-2011

Re-financing car loan by Jan. 2013.

I purchased a new car in January 2012 and was given an APR of 11.24% .  This is of course to my credit.  I would like to re-finance my car next year.  I heard of Capital One and how they refinance...Has anyone have any good experiences with refinancing?  OR does anyone have any refinancing tips? 

Valued Contributor
Crashem
Posts: 3,098
Registered: ‎01-26-2012

Re: Re-financing car loan by Jan. 2013.

Refinancing will only work if your credit score goes up. So probably advice around that more important. Also, look at local cu, probably better deals as banks typically ding you on rates on used vs new. Some cu don't do so.
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Super Contributor
CS800
Posts: 6,548
Registered: ‎04-07-2008

Re: Re-financing car loan by Jan. 2013.

You might get more hits to your questions if you post in the Auto Loan section :smileyhappy:



Mega Contributor
Creditaddict
Posts: 18,839
Registered: ‎10-23-2007

Re: Re-financing car loan by Jan. 2013.

Yes MOD Please move to auto...

 

What is Year/Make/Model of Car?

Who is it currently financed with?

What did you put down? What did you finance?

 

Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
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Moderator
Revelate
Posts: 8,345
Registered: ‎12-30-2011

Re: Re-financing car loan by Jan. 2013.

I think I remember when you purchased it and that you were a first-time buyer?

 

If you keep a clean payment history from that point, and when you go to refinance, you should almost certainly be able to get a lower interest rate.  Like others have stated, I would strongly encourage you to investigate a CU loan, they seem to be far and away the best value for one's FICO score currently when it comes to auto loans.  Ridiculously so in some cases.  I'm sort of kicking myself now for not refinancing back in January when my CU offered it (even though I'd only gotten the loan in December hah!).

 

There's really not much to re-financing, just like buying a car it pays to shop around for the best loan.  You'll need to get a 10 day payoff quote from your lender, and then go shopping for it.  Also like initial car buying, you want all your loan shopping done within a small time period (2 weeks ideal, 4 weeks decent, I wouldn't play the 45 days and bet that future lenders will pull FICO '08) and just get it done and out of the way.

 

Personally I'd do a little research on the forums and pick lenders that will seem to work with you on the refinance.  In my case I simply picked DCU (my own CU), Penfed, and USAA as being my targets for refinance.  Whichever gets me the lowest loan come Augustish, is going to get my business heh.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Moderator
pizzadude
Posts: 8,662
Registered: ‎01-28-2010

Re: Re-financing car loan by Jan. 2013.

 

+1 to Revelate's advice above.   Also, there really isn't any FICO score benefit from waiting 12 months before you refi.   If you can do it sooner and get a good deal, then definitely go for it.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Member
FLTeachK12
Posts: 13
Registered: ‎12-29-2011

Re: Re-financing car loan by Jan. 2013.

I apologize for posting in the wrong forum.  Didn't realize.


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