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Auto Refinance Question

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Anonymous
Not applicable

Auto Refinance Question

After having a Secured Card with my local bank for a few months they have said they now would like to help me refinance my vehicle at half the current interest rate of my current lender. I clearly want to make this move as I am certain it will help me reduce payment and cut time of the back end of the loan. Can anyone on this forum tell me if this will be good for my credit score or will it impact me for a month or two? I currently have a Secured Personal Card and  Business Secured Card with this bank in which i never keep a balance for longer than 7 days.

 

Pros or Cons? Any input would be greatly appreciated!

Message 1 of 8
7 REPLIES 7
lincar66
Frequent Contributor

Re: Auto Refinance Question

You didn't give us any numbers to work with like what your old loan is at and what new loan will look like.

Eq-670(dcu)ex-664 tu-693
NFCU Cash Rewards---8500k Joint Cash Rewards 2k NavCheck----15000 cap one 2500 cap one 2k synchrony furniture card 1500 walmart store card 6k walmart mastercard 6000 Firestone 1400 amazon 6k Lowes 12k serta 4k care credit 4800 rotman furniture card 1500 stash visa 2k bp visa 1500 PayPal MasterCard ????
Message 2 of 8
Anonymous
Not applicable

Re: Auto Refinance Question

Current Interest Rate of 15.95% with a payment of 539.00 per month for 72 months

 

New Loan Interest Rate of 8.74% with a payment of 487.00 per month for 60 months.

 

 

Message 3 of 8
Anonymous
Not applicable

Re: Auto Refinance Question


@JmmyBrdn wrote:

After having a Secured Card with my local bank for a few months they have said they now would like to help me refinance my vehicle at half the current interest rate of my current lender. I clearly want to make this move as I am certain it will help me reduce payment and cut time of the back end of the loan. Can anyone on this forum tell me if this will be good for my credit score or will it impact me for a month or two? I currently have a Secured Personal Card and  Business Secured Card with this bank in which i never keep a balance for longer than 7 days.

 

Pros or Cons? Any input would be greatly appreciated!


The only negative effect I can see would be if they require a HP for your credit, which is a low price to pay for a much lower interest rate.

 

The HP would only be a factor for a year and then it will lessen, and it will disappear after two years.

 

Getting HPs is a necessary part of building or rebuilding credit.

 

Other than that, you would just be saving money.

 

hth

 

 

 

Message 4 of 8
vayub4
Regular Contributor

Re: Auto Refinance Question

15.99%? Jesus Christ!!! You better refinance that vehicle for half that interest rate ASAP!!! I cant wait to refinance my Wellsfargo dealership financed car at 7%. I completely feel **bleep** every time I think about 7%!
Discover IT $25,500 Chase Freedom $14,500 CapOne QuickSilver $10,000 Walmart Mastercard $10,000 PayPal Xtras Mastercard $10,000 JCP $7,500 BOA Cash Rewards $6,900 OldNavy Visa $5,000 BarclayCard $3,700 Macys $3,500 HH Gregg $3,500 BestBuy $2,000 Last APP June/2016(useless rental apartment)Inquiries: Trans/7 Exp/16 Eqi/27
(1 Car Loan @2.74%)
Message 5 of 8
Anonymous
Not applicable

Re: Auto Refinance Question

Yes Wells Fargo came back at 8.74 % and saved me several months on the back end of the loan. He said I should try again in 6 more months to refinance.
Message 6 of 8
vayub4
Regular Contributor

Re: Auto Refinance Question


@JmmyBrdn wrote:
Yes Wells Fargo came back at 8.74 % and saved me several months on the back end of the loan. He said I should try again in 6 more months to refinance.

I don't like wellsfargo dealer services.... My score was 699 and the best they could do was a 7%. Can't wait to refinance with DCU!!!

Discover IT $25,500 Chase Freedom $14,500 CapOne QuickSilver $10,000 Walmart Mastercard $10,000 PayPal Xtras Mastercard $10,000 JCP $7,500 BOA Cash Rewards $6,900 OldNavy Visa $5,000 BarclayCard $3,700 Macys $3,500 HH Gregg $3,500 BestBuy $2,000 Last APP June/2016(useless rental apartment)Inquiries: Trans/7 Exp/16 Eqi/27
(1 Car Loan @2.74%)
Message 7 of 8
Luscher
Valued Contributor

Re: Auto Refinance Question

Refinance!

I would check in with DCU though first. They can probably beat that
CHASE FREEDOM | AMEX BCE | | BOFA REWARDS | CITI TYP | Quicksilver | DISCOVER IT | Sallie Mae | CHASE CSP
--------$32,000-------------$30,000-----------$30,000-----------$30,000-----$13,000---------$18,200----------$15,000---------$6,500----

FICO - TU: 780 EX: 784 EQ: 781
Message 8 of 8
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