How do get a car loan refinanced successfully?

[Anonymous]

 Hi,

I'm fairly new to the financial system in America and apologize for any silly question that might follow.

My husband and I got a car loan last year in May. Ever since I got a job we were in desperate need of a second car. However, I didn't have any credit history and his credit history was all mest up. Long story short, we had to agree to a car loan with pretty poor terms (interest around 11.5%). I would like to get refinanced ASAP and wonder what the best strategic steps for this would be.

Here are my questions.

• When is the best timing for checking on a new car loan? Should we do it now or rather wait couple more months until our credit score has gotten even better (our current credit score is fair and good)? I just got a credit card and working very diligent on increasing my score. I actually wanted to wait but heard that cars only below 100,000 miles qualify for refinancing. I’m worrying we are running out of time since we are around 85,000 miles already.
• We pay every month on time and I plan on paying each month an additional 40% until we get refinanced, is that a good idea (I mean in terms of showing good will and good financial status)?
• We want to put some money down in order to get better terms on the new car loan. Is that even a possibility? And if so, is that a good idea or should we rather just pay more than the monthly rate each month (point 2), perhaps both?

I’m really looking forward to hear from you and hope to benefit from your expertise! Your help is much appreciated!

[StartingOver10]

You have had the car loan since May 2013 so that is 8 to 9 months of payments already.

Have you established any other credit?

What are your FICO scores?

I would say that you could refinance with a credit union so you have a better loan, but it depends upon the age of the vehicle, the number of miles, the vehicle value and the remaining loan balance (as well as your score and income info).

If you are upside down in your current loan, you will have to bring additional funds to the closing. Do you belong to a CU?

[Creditaddict]

Who is the car currently finacned with?

you say good and fair is your current credit? what are you basing that on? recent scores and from where did you get them?

who did you recently get the credit card with? limit?

any other credit or loans?