When to refinance ?

[Anonymous]

Hi all !

I've always been on this forum reading around and learned a lot of helpful tips !

I'm currently in a pickle where my interest rate is very high at the moment and I am looking to refinance although I haven't had much luck on where to go or look.

I've signed up for refi rates on Creditkarma and found out that I basically consented to several inquiries on my credit score with no luck.. ouch.

I am currently paying through Toyota Financial although my rate is at 11% (another ouch) and I've already made 17 payments @ $431.00/month

Not sure which is needed in this assessment although my TU is at 695 & EQ is at 699 (I've made some chunky payments today so we'll see on the next update)

Here is more info on the car:

2012 / 55k miles / $15.4k left to pay off

Next step = ? 

Thanks !

[lincar66]

What kind of car and why haven't you went to dcu yet 

[Anonymous]

2012 Toyota Prius C three

I have no clue where to go or look.. never heard of DCU either.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

Hi all !

I've always been on this forum reading around and learned a lot of helpful tips !

I'm currently in a pickle where my interest rate is very high at the moment and I am looking to refinance although I haven't had much luck on where to go or look.

I've signed up for refi rates on Creditkarma and found out that I basically consented to several inquiries on my credit score with no luck.. ouch.

@I am currently paying through Toyota Financial although my rate is at 11% (another ouch) and I've already made 17 payments @ $431.00/month

Not sure which is needed in this assessment although my TU is at 695 & EQ is at 699 (I've made some chunky payments today so we'll see on the next update)

Here is more info on the car:

2012 / 55k miles / $15.4k left to pay off

Next step = ? 

Thanks !

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Are those real FICO scores or FAKO?  Do you know the difference?  What reasons are you being given for being turned down?  If those are FICO scores, they are very good scores.  Do you have anything derogatory on your credit reports?  Do you have high utilization on your credit cards?  Do you have a sufficient income to support the car payment (i.e., car payment is less than 6% of your gross monthly income)?

Who has rejected you and what were their reasons?

DCU is the obvious choice, but before you burn another inquiry, get your real FICO scores from this website, at least your Equifax FICO scores and know what your Equifax FICO 04 (mortgage score) is since that is what DCU will use.  Anything over 620 should be good.  Above 680 (EQ FICO 04) and you get their best rates.

[Anonymous]

I just read up the difference.. & I had no clue what FAKO was until now.

What reasons are you being given for being turned down?

They're not giving any reasons. Just emails stating they cannot accept me at this time

Do you have anything derogatory on your credit reports?

Nothing of that sort

Do you have high utilization on your credit cards?

I did recently at around 45-50% but that should be lower now

Do you have a sufficient income to support the car payment (i.e., car payment is less than 6% of your gross monthly income)?

Car payment is sub 10 percent of my monthly income

I just pulled up my score on myFICO.com and here is what I got:

EQ: 706

TU: 711

EX: 693

Fico Auto Score 4: 682

[CH-7-Mission-Accomplished]

You should be golden with DCU.  Apply with them.  Keep in mind that they do two hard pulls -- one for membership and one for the car loan.  Call and ask if you can apply for the car loan only and then if approved apply for membership.  Were they to reject you, you would only have one HP from them.  I know you can do this with their credit cards -- apply for the card and then membership -- and some people get approed for the loan but rejected for membership, which is very bizarre -- but would not happen in your case.  It is those with marginal scores.

[Anonymous]

Would it make any difference if I got my utilization down more ?

[CH-7-Mission-Accomplished]

Lower utilization is always better (as long as it's not zero), but your FICO 04 EQ score is over 680 and you are good for their best rates.

When you talk about your utilization, what is the percentage, but more importantly how much do you owe on your cards versus your credit limits

Unless you owe a lot of money and it impacts your debt calculations it should not matter since utilization is built into your score.  But owing $800 with $1000 limits is a lot different than owing $30,000 with $40,000 limits.

[Anonymous]

Thanks for all the help !

Just applied with DCU; will update with the outcome.

[CH-7-Mission-Accomplished]

Just curious, how did you get such a high rate to start with?  You don't sound like you have any kind of credit problems ....