Credit Card Center Advertiser Disclosure

Reply
Established Member
Posts: 40
Registered: ‎06-21-2016
0

Refinancing Auto loan or take personal loan?

Hi,

 

I'm still pretty new to the whole system and could use some advise. So I have a small car loan (<$4000) with insanely high APR (25%) because when I got it I had zero credit history. Of course I would love to bring the APR down and I've been consdering to refinance the car. Alternatively, I considered to take out a personal loan because I have some other costs coming up.

 

I'm not sure if I will even get a refining car loan, because of the low loan value (<$5000) and the high mileage of the car (>130k). 

On the other hand, I'm not compeltely sure if the personal loan would be a much better deal. I've asked my bank person (ASB) and of course he couldn't tell me the APR without a hard pull, but they do offer personal loans for 48  months.

 

About two or three weeks ago I got a letter for a preapproved Fast Cash Loan from ASB, but the APR was really high (19%). I was hoping that when I take out a personal loan I could get between 10 and 15... now I'm really reluctant to even try the personal loan because I want to avoid the hard pull on my record.

 

According to creditkarma, I'm slightly obver 700 (TU) and in the 690s (Equifax)

 

I would really prefer to take a personal loan for several reasons (the car would be ours and we could use the additional money), but not for a 19% APR.

 

Any advise on what to do is really appreciated Smiley Happy

Valued Contributor
Posts: 1,091
Registered: ‎01-24-2016

Re: Refinancing Auto loan or take personal loan?

Hi! Welcome to the forum, you should find out what your FICO credit scores are. The ones provided by Credit karma are known as FAKO scores, and no lenders use them. You can get your fico score on credit check total for $1. As to the personal loan vs. refi predicament I would suggest looking at Navy Federal Credit Union. They are accepting of new credit history and are generous. Anyone can join them now. There is a thread on how to do this.

Established Member
Posts: 40
Registered: ‎06-21-2016
0

Re: Refinancing Auto loan or take personal loan?

Thank you for your feedback.

 

I'm aware that the score from credit karma is only an estimate. I only wanted to provide a ballpark to show that I don't have bad credit.

 

I just checked out the Navy Federal Credit Union (though I'm not sure I'm even eligible as a non-citizen), their rates for personal loans really aren't that great, eitehr (11-18%).

 

I was hoping to use my bank's personal loan since it is indeed convenient to have someone to talk to in person. However, I'm open to other lenders, but I don't just want to go with 'any'...I'm a little sceptic in this regard.

 

Eventually, I'm just really hoping I can get a personal loan with a reasonable APR. Or, if it's just not possible with my short credit history (slightly over 1 year) and fair to good credit scores, I may have to reconsider the refinancing part... just not sure if it's an option given the circumstances and not sure which lender to use (right now the car loan is with First Hawaiian Bank) 

Moderator
Posts: 10,603
Registered: ‎03-06-2010
0

Re: Refinancing Auto loan or take personal loan?


Ankaa wrote:

Thank you for your feedback.

 

I'm aware that the score from credit karma is only an estimate. I only wanted to provide a ballpark to show that I don't have bad credit.

 

I just checked out the Navy Federal Credit Union (though I'm not sure I'm even eligible as a non-citizen), their rates for personal loans really aren't that great, eitehr (11-18%).

 

I was hoping to use my bank's personal loan since it is indeed convenient to have someone to talk to in person. However, I'm open to other lenders, but I don't just want to go with 'any'...I'm a little sceptic in this regard.

 

Eventually, I'm just really hoping I can get a personal loan with a reasonable APR. Or, if it's just not possible with my short credit history (slightly over 1 year) and fair to good credit scores, I may have to reconsider the refinancing part... just not sure if it's an option given the circumstances and not sure which lender to use (right now the car loan is with First Hawaiian Bank) 


^^^Statement in red:  no, the credit karma score is in NO WAY an estimate.  The scoring formula for CK is totally different from the FICO algorithm.  We don't know if you  have bad credit or not based on a CK score. These algorithms do not correlate in any way. 

 

Check out the subforum here called Understanding FICO scoring. Read that before you make any financial decisions. 

Established Member
Posts: 40
Registered: ‎06-21-2016
0

Re: Refinancing Auto loan or take personal loan?

Ok, I just checked my credit card, which does provide a FICO score, and it was 685 pulled from Experian at the beginning of October.

Regular Contributor
Posts: 202
Registered: ‎09-12-2016
0

Re: Refinancing Auto loan or take personal loan?

sure you looked at the right bank as i see them much less Capture.PNG

Established Member
Posts: 40
Registered: ‎06-21-2016
0

Re: Refinancing Auto loan or take personal loan?

Did you read? Smiley Happy I'm interested in personal loans rather than auto loans, but there was no subforum (or I missed it).

 

My initial auto loan has such a high APR because I took it when I had zero credit history combined with a rather low income.

Regular Contributor
Posts: 202
Registered: ‎09-12-2016
0

Re: Refinancing Auto loan or take personal loan?

Oh guess I just caught the first part sorry

Valued Contributor
Posts: 1,091
Registered: ‎01-24-2016

Re: Refinancing Auto loan or take personal loan?

Everyone on the forum is just trying to help out no need to respond like that. Unless you have terrific credit you are not going to find a personal loan with a great interest rate, have you thought about applying for a 0% balance transfer card you can transfer the balance or a portion of the balance from your car loan and pay more aggressively on it. There are a few options out there, the other thing with NFCU is you can use the full credit limit of a credit card like a personal loan. I would check out the Go Rewards card they are doing 6 months no interest and no balance transfer fee and the APR would still be less than you are currently paying even after the 6 months. 

Community Leader
Senior Contributor
Posts: 4,959
Registered: ‎04-27-2014

Re: Refinancing Auto loan or take personal loan?

Call PenFed and see if they will refi the auto with that miles/year. Let them know what you are trying to do and that your scores are "good" (when you check your EQ). If they say they do, join and refi for probably 5 or 6 %.  PenFed is pretty awesome and are very helpful. Anyone can join.

 

as low as $500 for 36 months.

 

kjhghihghuijhj.jpg


Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.