I currently have an auto loan financed with USAA for $19,820 @ 16.99%, I was offered a refinance with Navy Federal for 13.9% @ 60 months with a payment 25 dollars more that what I am currently paying. What I am wondering is if I pass on the offer from Navy Federal and take the next 2 months to get my utilization down, will that possibly help get me a better rate? They refinanced my other car the other day @ 5.29% for 48 months and saved me $100 a month. I was hoping for the same kind of deal. So what would you do. Take the deal that wil save me $4k in interest over the life of the loan.....or wait a couple of months and try for a better rate?
For the small variation you are currently being offered I would pay down utilization and wait. NFCU definitely operates their rates on credit tiers and if you can raise your credit score enough to qualify for the next lowest tier it would be beneficial. Paying down utilization is the fastest way to get a score increase once it all reports. Ideally you would like only one card reporting a balance and that one to be under 9% of its credit limit.
Starting Score: 500's
@HoldingOntoHope wrote:For the small variation you are currently being offered I would pay down utilization and wait. NFCU definitely operates their rates on credit tiers and if you can raise your credit score enough to qualify for the next lowest tier it would be beneficial. Paying down utilization is the fastest way to get a score increase once it all reports. Ideally you would like only one card reporting a balance and that one to be under 9% of its credit limit.
+1
Get that utilization down, then try again.
NFCU may also be weary from the other recent refi. You could try some other banks as well. Or refi it to NFCU for the 13.9% and refi back to USAA after your utilization updates. This will only work if you have a good solid and long AAoA.
