Re: Trying to refinance my auto loan but i'm having problems..
04-04-2013 07:50 AM
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.
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).