How long do I need to wait to refinance?

[shaybe]

I bought my first car today. I financed $12,354.89 at @14.49% for 60 months. Not ideal, but I absolutely had to have a car today. I know my credit scores are about to go up once a few more things are reported and I'm also due for a big raise in August. How long do I have to wait before I can refinance? I would prefer a much shorter loan term and better interest rate.

Also, in the meantime, I'm planning to pay a little bit extra on top of my monthly payments. Is that okay to do? In general, if you have a 60 month note and you end up paying it off in 48 months are you penalized on your credit report or anything?

Thanks!

Shanna

[WhirledPeasPlease]

Hi Shaybe!

Congrats on the car!

Refinance whenever you're comfortable with the new rate/terms. I think the only financial penalty would be for paying it off w/in 30 days of loan inception.  (I'm pretty sure that's the general thing w/ auto lenders.) 

You will re-age your AAoA (average age of accounts) when you refi, but you've got to start somewhere.   

Paying extra and/or paying early will not hurt your scores.  IMO knocking down debt and reducing future interest charges are always good things.