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Registered: ‎01-27-2013
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refinance question

Hi! My husband got an auto loan from NFCU in November 2012 for a 2012 dodge grand caravan. At the time he got approved his EQ fico was 599. His interest rate is 9.04% My question is when  should he try to refinance and with who.... His EQ fico has already gone up to 620 and just today he paid off 100% of his debt except for the auto loan so when that all reports I'm sure it will go up even more. What is the general rule of thumb for how long you should wait to refinance? I was thinking maybe trying in June? Any advice is greatly appreciated! Thanks!

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Registered: ‎09-29-2009
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Re: refinance question

You are probably not going to get a large reduction in the interest rate until his scores are in the upper 600's or even touching 700's. The 30 point increase means he is on the right track but not significant enough to make a difference with lenders. I would probably suggest biting the bullet and maintaining the loan with NFCU for one year while you continue to improve his scores. This will build a solid relationship with NFCU, which will likely be very beneficial in the future. And at that point you will probably find mailed offers coming to you from lenders who see the auto loan on his credit report.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL


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Posts: 688
Registered: ‎10-25-2011
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Re: refinance question

 


Sky89 wrote:

Hi! My husband got an auto loan from NFCU in November 2012 for a 2012 dodge grand caravan. At the time he got approved his EQ fico was 599. His interest rate is 9.04% My question is when  should he try to refinance and with who.... His EQ fico has already gone up to 620 and just today he paid off 100% of his debt except for the auto loan so when that all reports I'm sure it will go up even more. What is the general rule of thumb for how long you should wait to refinance? I was thinking maybe trying in June? Any advice is greatly appreciated! Thanks!


I would say app for a refi when scores are about 650+. General rule of thumb is refinance whenever your credit has significant improvement. In my opinion, 30 points is decent, 80 points is significant. 

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.

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