Wait it out or Dive In!

[Anonymous]

Me and My husband needed a car- unfortunetly the loan we got came with a higher interest rate which I just don't understand. 2 Years ago we bought a house which we got a 4.5% Interest Rate on, had 3 Credit cards and turned around and got a car loan 4 months later for 4.5% Interest for a total of $13,500.  When we Found out we were having twins, we knew we would need a little bit of a changer. Our 2007 Mazda 5 has no AC in the back, so we traded in for a 2009 Mazda 5 which does(this is the car we wanted- and it was priced right, If it had been priced at market value/a $1000 or more higher we would have walked). Total loan came out to $13500 with trade in and everything. Only, this time the Best interest rate we could get was 14.49% from Wells Fargo Dealer Services. We don't use our Credit cards they just have revolving balances that we pay off the minimum payment each month.

I am looking to refinance the car before we pay $8K in just interest (we've had the loan for 3 months now). I have tried with BOA, Chase, SCB&T, SCFCU, Lending Tree and CapitalOne

So Far my Offers are from up2drive 6.69% Interest. (Although they have Horrible reviews). and 8.61% from Capital One. The rest have outright denied us. Our Fico score is 658 I am Not sure his credit scores and Would have to pay for them since the last time we got them was less then a year ago. I am working on Paying off all his credit cards and have been doing that for the past 2 years. In the past 3 months we have completely paid off 2 credit cards that we're cancelled and just had reamining balances and a Zales card that now is just sitting there with no balance on it.

Should we just go for the Capitol One refi and look at refinacing again down the line if his credit improves? Shoudl we wait til the credit improves then look for a better rate? I would prefer the CO over the other because I actually have Capital One cards and a relationship with that bank.  Any Advice is appreciated. We are trying to finish this before the 20th when our next payment is due.

[FrugalRican]

If you have no other options (which it sounds like you don't) and you absolutely need the car (which it completely sounds like you do), then you should definitely go for Capital One. I did see one CU in there, so it looks like Cap1 is your lowest.

Refi would definitely be something you'd go for after 6 - 10 months.

You just might have to bite on that 9% for a while.

[Anonymous]

Hitting the 9% will lower our price considerably, Right now we're paying $289 a Month, They are saying it will be able $250 Thats almost $40 a month for Diapers lol! I am just scared of refi after refi just to get our price down. I don't wanna screw ourselfs just paying interest over and over again. Our Original Loan for the previous car had us at $225 a month for the payments So the closer I get the better I feel.

[FrugalRican]

I apologize, I misread the first post.

I thought you meant that you had the option of getting the FIRST loan for either 14% or at 9%... I didn't read that the 9% is actually the refi.

It's only been 3 months, you might want to wait a little bit more and then see, you might get different rates after 6 - 8 months.

[Anonymous]

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@Anonymous wrote:

Me and My husband needed a car- unfortunetly the loan we got came with a higher interest rate which I just don't understand. 2 Years ago we bought a house which we got a 4.5% Interest Rate on, had 3 Credit cards and turned around and got a car loan 4 months later for 4.5% Interest for a total of $13,500.  When we Found out we were having twins, we knew we would need a little bit of a changer. Our 2007 Mazda 5 has no AC in the back, so we traded in for a 2009 Mazda 5 which does(this is the car we wanted- and it was priced right, If it had been priced at market value/a $1000 or more higher we would have walked). Total loan came out to $13500 with trade in and everything. Only, this time the Best interest rate we could get was 14.49% from Wells Fargo Dealer Services. We don't use our Credit cards they just have revolving balances that we pay off the minimum payment each month.

I am looking to refinance the car before we pay $8K in just interest (we've had the loan for 3 months now). I have tried with BOA, Chase, SCB&T, SCFCU, Lending Tree and CapitalOne

So Far my Offers are from up2drive 6.69% Interest. (Although they have Horrible reviews). and 8.61% from Capital One. The rest have outright denied us. Our Fico score is 658 I am Not sure his credit scores and Would have to pay for them since the last time we got them was less then a year ago. I am working on Paying off all his credit cards and have been doing that for the past 2 years. In the past 3 months we have completely paid off 2 credit cards that we're cancelled and just had reamining balances and a Zales card that now is just sitting there with no balance on it.

Should we just go for the Capitol One refi and look at refinacing again down the line if his credit improves? Shoudl we wait til the credit improves then look for a better rate? I would prefer the CO over the other because I actually have Capital One cards and a relationship with that bank.  Any Advice is appreciated. We are trying to finish this before the 20th when our next payment is due.

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Bring down your CC balance to belwo 5 % and DO NOT CLOSE THEM. Leave them open, use them and pay them in full . that would give you a boost in credit score. Also what is the reason for all these denials and such high APR eventhough you have a paid auto loan on your credit. There has to be something that is draging your score down or your APR up. Pull your credit report and clean up the negative factors. also you can buy fico scores from here and have a better idea of where you stand.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Me and My husband needed a car- unfortunetly the loan we got came with a higher interest rate which I just don't understand. 2 Years ago we bought a house which we got a 4.5% Interest Rate on, had 3 Credit cards and turned around and got a car loan 4 months later for 4.5% Interest for a total of $13,500.  When we Found out we were having twins, we knew we would need a little bit of a changer. Our 2007 Mazda 5 has no AC in the back, so we traded in for a 2009 Mazda 5 which does(this is the car we wanted- and it was priced right, If it had been priced at market value/a $1000 or more higher we would have walked). Total loan came out to $13500 with trade in and everything. Only, this time the Best interest rate we could get was 14.49% from Wells Fargo Dealer Services. We don't use our Credit cards they just have revolving balances that we pay off the minimum payment each month.

I am looking to refinance the car before we pay $8K in just interest (we've had the loan for 3 months now). I have tried with BOA, Chase, SCB&T, SCFCU, Lending Tree and CapitalOne

So Far my Offers are from up2drive 6.69% Interest. (Although they have Horrible reviews). and 8.61% from Capital One. The rest have outright denied us. Our Fico score is 658 I am Not sure his credit scores and Would have to pay for them since the last time we got them was less then a year ago. I am working on Paying off all his credit cards and have been doing that for the past 2 years. In the past 3 months we have completely paid off 2 credit cards that we're cancelled and just had reamining balances and a Zales card that now is just sitting there with no balance on it.

Should we just go for the Capitol One refi and look at refinacing again down the line if his credit improves? Shoudl we wait til the credit improves then look for a better rate? I would prefer the CO over the other because I actually have Capital One cards and a relationship with that bank.  Any Advice is appreciated. We are trying to finish this before the 20th when our next payment is due.

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Bring down your CC balance to belwo 5 % and DO NOT CLOSE THEM. Leave them open, use them and pay them in full . that would give you a boost in credit score. Also what is the reason for all these denials and such high APR eventhough you have a paid auto loan on your credit. There has to be something that is draging your score down or your APR up. Pull your credit report and clean up the negative factors. also you can buy fico scores from here and have a better idea of where you stand.

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This!  Having a high balance on your credit cards is one of the biggest score killers.  Fortunately, it is also one of the quickest/easiest ways to boost your score.  Pay more than the minimum on  your cards.  Get your utilization under 10% and you should have a way better score, which equals better APR.