Auto refinance

[Anonymous]

Hello All,

I am brand new to this forum, but I have been reading a bit. I want to give you my situation and see if you can help me out.
About 16 months ago I was financed 14k from Wells Fargo to buy a car. I got a rate of % 15.9. This is a 5 year loan.. I just received a new cc from hsbc.. If that makes a difference. I don't know my fico..but my ex plus score just hit 711. Back when I financed it was near 560. I have about 15 inquiries at the moment.

With all of that info, would it be likely for me to be approved for a refinance?

[pizzadude]

Was this HSBC card your first revolving account or do you have other CCs open as well ?

You might also try asking WF If they would do a refi to a lower rate. Occasionally banks will do this, but it never hurts to ask.

[Anonymous]

No, this is my second CC. Both are low limits - 200 and 300. I did apply at WF again today, and they approved me but will need to call e tomorow for details. Looks like I might have my answer already.

[guydiver]

---

@Anonymous wrote:

No, this is my second CC. Both are low limits - 200 and 300. I did apply at WF again today, and they approved me but will need to call e tomorow for details. Looks like I might have my answer already.

---

Let us know how it turns out, and GOOD LUCK!  I think you can get refinanced with your recent credit history, even if not with WF.

[Anonymous]

I would be surprised if WF is willing to refinance their loan at a lower rate. But you can probably find a lender willing to lower your rate. Your scores are not a true indication of what your FICO scores (which the lender will pull) are. But just given the positive history on your tradelines it's probable your FICO scores are up.

The challenge you are most likely to face is whether the value of the car is enough to cover the amount needed to refinance. The problem with high interest loans is you are paying back the principal so slowly in the beginning. (I know from experience, CAP 1 @ 22%). You may end up bringing some cash to the table to get the loan balance and car value to match. But good luck in whatever you do. Sometimes we just have to ride out a bad experience for a while to atone for our past mistakes.

Continued on time payment on the car note and credit cards as well as aging of any past mistakes will only have a positive effect on your FICO scores whether you refinance or not.

[Anonymous]

Thanks for the reply. I just got a voice mail from WF (a different branch, not dealer services), saying they have great news for me. I'm waiting for the call back now. According to kbb, my car is worth 12600, I owe 12000, so I may have enough equity in the vehicle to make for a smooth app.

[Anonymous]

As an update, they called me back with an offer of 60mos. @ 11.25. I countered with % 8 and recited knowledge I got from these forums. Looks like I'm going to get it, fingers crossed

[pizzadude]

That's great ! Congrats ~ I hope that it works out for you ~ keep us posted !

[my25reasons]

That's a pretty high interest rate! WOW! I just received an email from my Credit Union - They are refinancing used vehicles at 2.74%, and with a score over 700 - you would certainly qualify for a prime rate on an auto loan. Check around and see what other banks have to say.

[Anonymous]

Are you referring to the 15.9 or the 8? Do you think I can go lower then 8? And after I already said I would take 8?