In need of refinancing

[keithbward]

So I was in a situation where I needed to purchase a vehicle back in January. My GF and I were sharing a car and it just became too much as our jobs and schedules were weighing on us. I went to the dealership and bought a brand new Camry and because my credit was terrible, I ended up with a high rate. I can manage the payment with no problem as my finances are in great shape. That was also the time that opened my eyes to get a handle on my credit. So since the car I've reached the 700's for a brief period of time and was looking to refinance. Then I got hit with a medical collection due to wrong processing by the hospital and the insurance company. It's in the process of being rectified, but the collection is brand spanking new and sent my scores down 55-70 points depending on the bureau. I'm still in the 650's with is way better than I was when I first got the car. My question is should I hold off until this situation gets ironed out in a few weeks or should I try to get a better rate from one of the institutions I bank with. Currently my loan is through Capital One Auto with a rate of 10.6%.....yea I know. Thanks guys.

[juggalo9er]

what state you live in....please say indiana

[axledobe]

I would wait if I were you.  If you're able to get that collection deleted altogether, it will likely cut your refi rate in half.  I'd say you could get somewhere in the 6% range now where a 3.49% or less is feasible without the collection, depending on your DTI and year model of the car.  If you are in dire need to do it now, you should share your highest score so others can chime in and let you know what bank will hit which CRA.  I see your TU seems to be highest now.  Depending on where you live, US Bank might be an option.  It's a solid TU pull (always) in my state (your state may differ).  You might also look at a CU.  Their rates are usually always better.  Just be sure they don't require 2 or 3 different kinds of GAP and accidental insurance that would raise your monthly payment by $20 each month easily.  

Good luck whatever you decide.  

[Anonymous]

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@axledobe wrote:

I would wait if I were you.  If you're able to get that collection deleted altogether, it will likely cut your refi rate in half.  I'd say you could get somewhere in the 6% range now where a 3.49% or less is feasible without the collection, depending on your DTI and year model of the car.  If you are in dire need to do it now, you should share your highest score so others can chime in and let you know what bank will hit which CRA.  I see your TU seems to be highest now.  Depending on where you live, US Bank might be an option.  It's a solid TU pull (always) in my state (your state may differ).  You might also look at a CU.  Their rates are usually always better.  Just be sure they don't require 2 or 3 different kinds of GAP and accidental insurance that would raise your monthly payment by $20 each month easily.  

Good luck whatever you decide.  

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