New Visitor
remoteremedy1
Posts: 5
Registered: ‎04-04-2013
Trying to refinance my auto loan but i'm having problems...

Trying to refinance my auto loan but i'm having problems...please help

 

my credit score right now:

 

Experian - 598

Equifax - 579

TransUnion - 574

 

 

it was originally around 520 but i'm working hard to get my scores up. Almost a year ago my car broke down and i had no choice but to get a new one. After shopping around and making the stupid mistake of having dealers run my credit multiple times, i finally was able to obtain a new car, the only thing is that the interest rate is extremely high.

 

I am unsure on the number but my montly payment is 455 dollars on a 20k loan. I have friends with the same car and the montly payment is 150 dollars.

 

I did some research and i heard its best to apply for a subprime lender, i tried roadloans.com but i was denied. Does anyone have any other companies that you think would help? Or any other suggestions? Please let me know.

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Trying to refinance my auto loan but i'm having problems...

You'll just get more of the same rate with a subprime lender. Do you know your rate now?

 

If I had what you had, I would focus on repair and rebuilding credit over the next 5-6 months or so, get my FICO scores into the 600s, and then I would try to refi with a CU somewhere. And I know how frustrating it can be throwing away money. Before learning about credit I had two loans, one at 13.xx% and then two years later, like I didn't know any better, I agreed to pay 19.9% APR on a 72 months note for $606 and some change for a car worth tens of thousands less. At least I found this site before paying it off and paid it off a year early. Better late than never.

Regular Contributor
ImprovingYouth
Posts: 154
Registered: ‎09-21-2012
Re: Trying to refinance my auto loan but i'm having problems...

llecs wrote:

You'll just get more of the same rate with a subprime lender. Do you know your rate now?

 

If I had what you had, I would focus on repair and rebuilding credit over the next 5-6 months or so, get my FICO scores into the 600s, and then I would try to refi with a CU somewhere. And I know how frustrating it can be throwing away money. Before learning about credit I had two loans, one at 13.xx% and then two years later, like I didn't know any better, I agreed to pay 19.9% APR on a 72 months note for $606 and some change for a car worth tens of thousands less. At least I found this site before paying it off and paid it off a year early. Better late than never.


+1

 

I will add that I believe your friend is highly exaggurating their payment. A 20k loan with the longest possible term (usually 72 months) would equate to $277.78 with 0% interest. The loan would have to be less than 10k to have a payment that low.... (unless they are leasing in which the loan might actually be only 10k or less, but thats a different story all-together).

Age: 22 //Cards: Chase Freedom, Chase Amazon Visa, Discover IT, CreditOne, CapOne Quicksilver, CapOne Cash, Walmart, Barclaycard, Citibank BestBuy, NavyFederal Visa Signature cashRewards //AAoA: 1 Year 3 Months (but going down quickly :smileytongue:) //CK:692, Sesame:656
New Visitor
remoteremedy1
Posts: 5
Registered: ‎04-04-2013
Re: Trying to refinance my auto loan but i'm having problems...

thank you for the responses, i guess i have no choice but to wait.