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Established Member
Posts: 22
Registered: ‎09-17-2013
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Refinancing Car with CU

My scores are 703,708 and 693. I have a car loan from TFS and I currently owe $7500. The car has 91 000 miles and is a 2006 Scion XA. The Credit Union is only refinancing it because it's worth more than I owe. They checked the value with the VIN number and its worth $8100.


My current rate with TFS is 7.54 at $238 a month and CU is offering my around 3% for $218 a month.  Is this deal worth it? I will be looking to sell the car in August and will be buying a brand new car.

Posts: 17,526
Registered: ‎12-30-2011
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Re: Refinancing Car with CU

[ Edited ]

I think only you can answer that.  Personally I wouldn't bother refinancing for a savings of $200: I'd rather have the longer tradeline rather than pickup a loan I'd be dumping in under a year but I'm much concerned with how my credit report looks than I am about that amount of money.  I am also trying to stay squeaky clean as I'm going to be going through a mortgage process within the next six-twelve months, YMMV.


If $200 makes a material difference to you, then that may be a different story.


I think you'll see the forum is sort of split on this one: while it's definitely smart to save money in any way possible, this one just strikes me as too little too late personally; that said, there may be some upside in picking up the CU relationship as well if you haven't already established it.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)

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Established Member
Posts: 22
Registered: ‎09-17-2013
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Re: Refinancing Car with CU

The $200 savings is really not in my interest. I only showed interest in refinancing because I was already in the CU at the time.

I am also considering not having my credit checked over a $20 Savings a month because I am aiming for a high score so I can negotiate and play my cards right for the best interest rate available.

If I refinance I will not buy a new car to the fact that my score will have that dang which I'm trying to avoid.

Thanks for the Advice.
Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
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Re: Refinancing Car with CU

I would suggest you refi to a shorter term. Your payment will jump, but you will have more equity when you are ready to sell next year. Or, if you decide to keep it. You will own it free and clear sooner.

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New Member
Posts: 12
Registered: ‎07-24-2013
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Re: Refinancing Car with CU


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