Auto Re-finance

[dallasjetfan]

I have an auto loan with Capital One at 13.75% for 72 months. This was just two days after my BK had been discharged. I have my scores in the mid 600's now (490 at the time of loan). I have received 3 re-finance pre-approvals from HSBC, CitiFinancial and Wachovia. They are around 8.75%-9.99%. I have paid 18 payments so I have 54 left. The payments are not a problem and I will probably start paying an extra $1000/month to pay-off early. How should I approach this opportunity? Should I call or apply on-line? Is it worth it? How will this affect my credit score? Thanks!!

[Tuscani]

I would refi. You shouldn't be paying double-digit rates with your scores. Just make sure that your refi terms do not stretch the loan out further. For example, you have 54 months left to pay.. Get a 48 month loan on the refi and not a 60 or 72. Also try a local CU. A CU can almost always beat a bank's rate.

[dallasjetfan]

Wachovia or CitiFinancial? Is one better than the other?

[CreditDrama85]

wachovia is better

[dallasjetfan]

They took my application at Wachovia and offered me a rate of 11.89 down from 13.75%. I have an application in with CitiFinancial too. We'll see! I thought it would be a lot better than that.

[dallasjetfan]

I just got approved by CitiFinancial at 9.99%. That is much better! I think I should try at a credit union and see what they say.

[dallasjetfan]

Also, how does a refi help or hurt your credit scores? Thanks!!

[dallasjetfan]

Anyone??

[dallasjetfan]

Also, how does a refi help or hurt your credit scores? Thanks!!

[dallasjetfan]

Does anyone know how a refi will affect credit scores??