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Refinancing a vehicle while building credit

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Anonymous
Not applicable

Refinancing a vehicle while building credit

I am in the process of rebuilding my credit. After not having used credit cards for close to 10 years, I found I had in effect become a ghost and now I am attempting to beef up my portfolio to one day own a home.

 

Starting in September:

First, I tried applying for a couple cards.  Denied.  So, I got a secured Visa for $200.  I put my recurring Netflix and Gamefly on there to show some utilization.  Next, I purchased a 2013 car.  At the dealership, my credit score was 589 and my credit was pulled like 11 times.  I was finally approved for $13,000 @ 12.49% for 72 months.  I will be making a monthly payment of $141 two weeks away from my monthly payment of $259 for a total of $400/month.

 

Since getting the car, I have been approved for a non secured visa with a $300 limit.  (It's in the mail)

 

According to MyFico, my credit score is now at 656.  That jump is due in full to that meager secured card since my first full car payment has not been withdrawn yet and the unsecured card was just approved a few days ago.

 

I am eager to refinance this car, but I do not want to do damage to my credit report while attempting it.  Should I wait for the score to go up or should I start re-applying now?  I would really like to refi through PNC, but they turned my down on the pre-approval that I attempted before I went to the dealers. (When my score was 589).  Also, when applying at a bank, does going into a branch vs applying online affect the decision in any way?

 

Any insights or help would be greatly appreciated!

 

Message 1 of 5
4 REPLIES 4
StartingOver10
Moderator Emerita

Re: Refinancing a vehicle while building credit

So how many payments have you made on this vehicle?

Who are you financed with now?

 

What is the value of the vehicle? How much is the loan? What is the milage?

Message 2 of 5
Anonymous
Not applicable

Re: Refinancing a vehicle while building credit

I made one payment of 141, and my first "real" payment is about to go through for the 259.  Like I stated above, I owe 13000 the car is worth that.  
The mileage is about 41,500

 

 

Message 3 of 5
StartingOver10
Moderator Emerita

Re: Refinancing a vehicle while building credit

You will need to make payments for a while before you refi - six to 12 months to show you have the ability to pay on time. Look at some of the auto refi threads and you will see most have at least 6 months in before they refi.  

 

 

Message 4 of 5
Anonymous
Not applicable

Re: Refinancing a vehicle while building credit

Thanks for the advice. I will sit tight.
Message 5 of 5
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