Auto refinance

[cp94550]

I'm not sure if this is the correct area to post this... please move if necessary.

I've been taking some steps to improve my credit score, and am hoping to see an improvement when I generate my next report.  I'm wondering if someone can provide me with some information on refinancing and what the process is like, and really what it could do for me.

I don't know much about refinance, but my understanding of it is I would apply for a new auto loan, hopefully at a lower interest rate.  If I get the new loan/approval, my payments will be lower, but it would extend the length of my loan?  I really don't know anything about refinance, so I may be wayyyyy off.

I also don't know if it's worth looking in to.  I have an auto loan now with approx 2 years remaining.  I owe approx $7,500 and my monthly payments are $374.  I think I have an interest rate of 19% as my credit was not good at time of applying (It's not much better now, but I'm working on it) and I have a co-signor on my account.  I am financially capable of continuing my loan for the remaining 2 years at the current payment, but thought I could save some money by refinancing.

Any good in refinancing?  How does that affect my score?

[pmbrian]

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@cp94550 wrote:

I'm not sure if this is the correct area to post this... please move if necessary.

I've been taking some steps to improve my credit score, and am hoping to see an improvement when I generate my next report.  I'm wondering if someone can provide me with some information on refinancing and what the process is like, and really what it could do for me.

I don't know much about refinance, but my understanding of it is I would apply for a new auto loan, hopefully at a lower interest rate.  If I get the new loan/approval, my payments will be lower, but it would extend the length of my loan?  I really don't know anything about refinance, so I may be wayyyyy off.

I also don't know if it's worth looking in to.  I have an auto loan now with approx 2 years remaining.  I owe approx $7,500 and my monthly payments are $374.  I think I have an interest rate of 19% as my credit was not good at time of applying (It's not much better now, but I'm working on it) and I have a co-signor on my account.  I am financially capable of continuing my loan for the remaining 2 years at the current payment, but thought I could save some money by refinancing.

Any good in refinancing?  How does that affect my score?

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With your credit score you are not going to do any better on your rate - I would say just stick it out and when you are done with your payments use that money to pay off your other issues, and don't buy a new car!

[cp94550]

Thanks for the input. I know my current scores won't get me anywhere - I was thinking a little in the future if I get scores up to 600? 620? 650?

I dont fully understand the refi process so that's what I was trying to find out. Would it even help or with me having a lower balance and only 2 years left should I just keep it as is (assuming my scores were in the 600-650 range)?

[Booner72]

When we refinanced we called our CU.  They said the loaned 80% loan to value - luckily our truck came right in at blue book, we had to pay 550.00 to the CU so that they full payoff amount could be sent to our old lender, "Nationwide"- Out of Las Vegas ( I would NOT recommend them to anyone as they are NOT on your side. They charged me ev month just to make the payment.

  The CU  also went ahead and loaned the full 100% of what the truck was worth since we only needed 7100.00  (after the 500) --- So you need to find out first of all, what a bank would be willing to lend on your vehicle - you could call and ask b4 applying for credit just so you know that info.

Our scores were 643 and 640-something (can't remember)  to get 6.9% refi.  I just called them up and applied, she talked to the underwriter, and they said they'd do it in just under an hour.

Then we signed the applications.  Then they sent the pay off to Nationwide via overnight check.  Now I make my payments to the Credit Union.  Auto-withdrawal earns you at least .5 to 1% off your Interest, from my experience, w/ credit unions.

If you belong to a CU or a bank, go in there, and have them pull your credit, and see what they say - ask them what you would need to do to get a new loan to pay the other one off.   If you don't belong to a CU, I suggest you get one for future needs.  Big Banks are bogus w/ their charges and CU's are local - they help the local economy.

Edited: bold