Refinancing w/ CU

[tylaw13]

So heres the deal i bought an 06 G35 back in january of this year im very young so my credit file was thin and Wells Fargo gave me 16.99% interest rate. The loan is for 66 months and i know my scores have gone up since i got the loan in the beginning of the year. my question is should i wait a full year to refinance? ive been a member of California Coast credit union for almost a year and they are a great CU, so i want to refinance with them . what should i do??

[Cellice]

If they will approve you at a better rate, go for it. The longer you wait the longer you pay at such a crappy interest rate.

[tylaw13]

yeah i think once i pay down my credit cards im gonna go for it.

[pizzadude]

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@Cellice wrote:

If they will approve you at a better rate, go for it. The longer you wait the longer you pay at such a crappy interest rate.

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+1.   There's no reason to wait to refinance ~ get out from under that interest rate and you'll save yourself a lot of interest.

[tylaw13]

i was gonna wait to get my scores up because they said if im above 700 theyll give me 4% im gonna ask what they pull tomorrow hopefully equifax cause the one paid collection i have isnt on there.

[marty56]

You also benefit from building your relationship with the CU.  Some even will give you better rates on new loans based on your past history with them.  CU's rule!

[StartingOver10]

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@tylaw13 wrote:

i was gonna wait to get my scores up because they said if im above 700 theyll give me 4% im gonna ask what they pull tomorrow hopefully equifax cause the one paid collection i have isnt on there.

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Don't expect the bank where you have your current loan at 16%+ to refi you to a much lower rate. They will tell you they refi to lower rates, but in practice they don't do it (especially Wells Fargo). It is a very common strategy that the loan officer uses to placate your fears of signing for a high interest loan. Since your credit has improved go to a CU (other another bank) and refi your car loan. You can get a lower rate by refinancing through a third party, not your existing lender. There is no incentive for them to turn your 16% rate into a 4% rate - in fact, it is a disincentive. That's why you need to refi through another lender. Not every CU or bank will offer the best rates, but just about any other bank or CU will have a better rate than your current rate so shop until you find the best rate for your refi.

[tylaw13]

i know wells fargo wouldnt do refi me at a lower rate thats why im going to my credit union ive been banking with for almost a year. maybe you read my first post wrong?

[StartingOver10]

Oops, you're right. I misread your post. I'm sorry.