Is Refinancing an Option?

[itspnutbutterkellytime]

Hi there. I am looking to refinance. I bought my car (2005 Nissan Altima) in January of this year when my credit score was absolutely horrible (400's). I was only able to get approved for a loan with a crazy interest rate (22%) and a down payment of 3k. I had no choice but to take the offer as I needed a car. My scores are slowly improving. They are currently 547, 578, 596. I have 2 paid collections on my report and quite a few baddies. Do I have a chance at getting refinanced anywere? I have made perfect payments on my car thus far. $6700 left on the loan. Thanks in advance for your help!

[Appleman]

I recommend that you go to a site like KBB.com and get the value of your car. This will allow you to get the current value based on it's current condition, mileage etc.

I did a brief check and it looks like your car MIGHT be worth $3,000. So unless you can pay down the note quite a bit, I doubt you can refinance (plus the year/age could make it difficult to refiance).

With that high a rate, anything extra you can pay toward principal would really help in accelerating the pay-off.

Hopefully others will chime in..

[fury1995]

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@itspnutbutterkellytime wrote:

Hi there. I am looking to refinance. I bought my car (2005 Nissan Altima) in January of this year when my credit score was absolutely horrible (400's). I was only able to get approved for a loan with a crazy interest rate (22%) and a down payment of 3k. I had no choice but to take the offer as I needed a car. My scores are slowly improving. They are currently 547, 578, 596. I have 2 paid collections on my report and quite a few baddies. Do I have a chance at getting refinanced anywere? I have made perfect payments on my car thus far. $6700 left on the loan. Thanks in advance for your help!

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Aside from the APR, what are your current terms (monthly payment, length of loan)?

[itspnutbutterkellytime]

20.97% APR and my monthlt payment is $240. It is a 48 month loan but have completed a year of payments so far.

[Anonymous]

As stated above your loan to value ratio will be the biggest issue.  Its a 12 year old Nissan so the value won't likely be as high as your balance.  My guess is doing a refi won't likely work out.  I don't know your overall financial situation but I would do all I could to pay that thing off asap, thats the best way to avoid the interest.  The other option is to join a good credit union and see if you can get a personal loan and pay it off that way.   EIther way work hard on your rebuild so you don't ever get in the position of having to do a subprime loan again.  I have been there and was fortunate to be able to get my way out pretty quickly.