cancel
Showing results for 
Search instead for 
Did you mean: 

Should I refinance?

tag
omgtain
Established Member

Should I refinance?

So I got my auto loan June 2014, my monthly payment is 206$ and interest rate of 4.64% through Chase.

Credit Karma is trying to get me to refiance my loan through "Innovative Funding Services", where my monthly payments will be 177$ and interest 3.49%.

 

Should I take it or do you think I can do better? I just got a new card so my score took a hit, its ~700. I'm 20 and my first card was opened in Jan 2013, I've now got 6 and total util is less than 20%. Never missed a payment.

Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: Should I refinance?

There is not much to gain here in terms of interest.  You can go to bankrate.com which has a good car loan calculator where you can see the difference in what you would pay in interest over the life of the loan, my guess is it is really close.  Personally I would want to establish a strong relationship with Chase because I think in the long run you will stand more to gain than establishing a relationship with innovative funding services.  My guess is you will find it easier to get financing with Chase in the future as well as getting good cards.

Message 2 of 4
SamsungHDTV
Established Contributor

Re: Should I refinance?


@omgtain wrote:

So I got my auto loan June 2014, my monthly payment is 206$ and interest rate of 4.64% through Chase.

Credit Karma is trying to get me to refiance my loan through "Innovative Funding Services", where my monthly payments will be 177$ and interest 3.49%.

 

Should I take it or do you think I can do better? I just got a new card so my score took a hit, its ~700. I'm 20 and my first card was opened in Jan 2013, I've now got 6 and total util is less than 20%. Never missed a payment.


First of all, the rate you are seeing on credit karma is only and advertising and you arent guaranteed that rate. You need to read the fine print, where it says based on XX loan amount and over XX months.

Secondly, you should refinance because loan rates can be under 2% lately. I would recommend you apply at a credit union.

 

This is all general advice, as I am only going by what your giving me.

Message 3 of 4
Anonymous
Not applicable

Re: Should I refinance?

Second the CU idea. A CU can almost certainly beat the rate, otherwise i wouldn't bother. Credit karma is great for monitoring your reports, but I would trust not in their recommendations.

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.