I’m wanting to refinance my auto loan with Wells Fargo Dealer Services. Right now I owe about $9800 @ 8.99% with 60 months left. The loan has been open for a year and I haven’t missed any payments. I’ve been paying the loan down with larger payments when I’m able to. The original balance was $14K. I opted for 72-month financing even though I planned on paying it off way sooner. I am hoping to refinance with a term of 48 or 36 months depending on the rate.
My scores are in better shape now than they were when I purchased the car a year ago. My FICO scores are in the 670’s. Do I qualify for a better rate? Should I lower my credit card utilization and let it report before applying for the refi? Right now I’m at 35% utilization but by the end of the month, my utilization should be in around 26%.
Your feedback is appreciated 
@JAlex2014 wrote:@I’m wanting to refinance my auto loan with Wells Fargo Dealer Services. Right now I owe about $9800 @ 8.99% with 60 months left. The loan has been open for a year and I haven’t missed any payments. I’ve been paying the loan down with larger payments when I’m able to. The original balance was $14K. I opted for 72-month financing even though I planned on paying it off way sooner. I am hoping to refinance with a term of 48 or 36 months depending on the rate.
My scores are in better shape now than they were when I purchased the car a year ago. My FICO scores are in the 670’s. Do I qualify for a better rate? Should I lower my credit card utilization and let it report before applying for the refi? Right now I’m at 35% utilization but by the end of the month, my utilization should be in around 26%.
Your feedback is appreciated
The key question is going to be the loan to value ratio. If that is around 100% your good. Much higher than 110% it might be tough. I would find that information out and then apply with a credit union (DCU, NFCU and Penfed are all good). I have been where you are a year ago and went from 12.57% to 4.29% with scores much lower than yours. As long as that LTV is good your set.