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Refi'd my auto loan from 18.8% to 8%!

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Re: Refi'd my auto loan from 18.8% to 8%!



@ChuckG wrote:


@forthepeople wrote:
Great to hear! WOW that is big 18% to 8%. That means you are doing something right. Question, when you did the refi. did the mark the old loan as "PAID OFF" or as "CLOSED". ?


I don't know yet, right now the new loan is showing on EX as open along side the old loan. Both EQ and TU only have the old loan. Guess I'll find out in 30 days or so.

Let us know what happens!!!
EQ 814 / TU 815 / EX 842
Message 11 of 19
Regular Contributor

Re: Refi'd my auto loan from 18.8% to 8%!

Looks like it'll be even longer until we find out. Apparently there was some sort of error with the gap insurance or something so the payoff check the CU gave me was 200 bucks short... I just sent in a check to cover the difference to Cap One, so we'll see how long it takes to get everything settled.

Starting Score: 556
Current Score: 672, 681, 692
Goal Score: 700, 700, 700


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Message 12 of 19
Valued Contributor

Re: Refi'd my auto loan from 18.8% to 8%!

CONGRATS!!!...I'm trying to figure out if I need to do he same...my car loan is at 22%...60 months...I have had it for 19 months...I was thinking of trading it in...but I plan on getting a home in 6 months...so I don't want to mess that up...looking like a new loan...so I was wondering if I should refinance...if I don't trade it in...I think I DEFINITELY am going to refinance...just weighing out my options...
Message 13 of 19
New Visitor AR1
New Visitor

Re: Refi'd my auto loan from 18.8% to 8%!

Pretty much the same here. I got my loan from 18% to 6.01% in about one year of working on my FICO score (legally) and having about 15 months of auto credit history back on the books. So, it can be done. I too, will save about 3K in interest. I financed through a bank instead of the car dealership.
 
Message 14 of 19
Established Member

Re: Refi'd my auto loan from 18.8% to 8%!

We bought a new car in December, then another in March ... our (my) scores were pretty low by then and we got slammed with a high interest rate. I am working to increase my score, but would really like a lower rate. How long should I wait before refinancing ... the last thing I want is more Auto inquiries when I'm trying to boost my scores.
Message 15 of 19
Valued Contributor

Re: Refi'd my auto loan from 18.8% to 8%!

This just goes to show there's a lot of financial kung-fu in that little three-digit number.

As far as paying off collections and old debts, good points all around. The bottom line there is that when a computer makes the decision as to whether or not to approve you for credit (like when you apply online for a credit card, or with most store charge cards), generally a paid charge-off or collection will count against you just as much as unpaid. This is because most computer-driven decisions factor in only FICO scoring, or perhaps when your last baddie of any kind happened.

However, if a human is in the loop, then yes, you'll generally get at least a little consideration for settling past accounts. This is the case primarily for home and auto loans.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 16 of 19
Established Member

Re: Refi'd my auto loan from 18.8% to 8%!

I am happy for you! WTG!  I have a quick question. I am looking a purchasing a car within this month, and i am not done with all of my collection accounts, but I signed up for credit counseling so that everyhting gets rolled into one payment.  My credit is nowhere near good, and I wanted to know if you think that showing the program enrollment to explain some of my debt will help when I go to get approved.  They keep telling me that I should have no probelms with a utility bill, and proof of income.
 
Thanks for the help!

Starting Score: TU 520 EQ 509 EX 481
Current Score: TU 577 EQ 571 EX 557
Goal Score: TU 748 EQ 730 EX 700


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Message 17 of 19
New Contributor

Re: Refi'd my auto loan from 18.8% to 8%!

Hey thats great, I did pretty much the same thing. After nine moths of positive bill paying.My scores were tu 569 ex 583 ep 565 now i have a tu 650 ex 620. I financed a vehicle at an embarrasing 23% nine months ago. May 10 08 I financed a vehicle with BMW at 14% which is not great but better than 23%
Starting Score: 12/09 EQ606 TU609 EX624 pulled by VA lender
Current Score:7/4/10 EQ 698 TU 713 EX 703 pullued by loan officer
Goal Score: 750

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Message 18 of 19
Highlighted
New Member

Re: Refi'd my auto loan from 18.8% to 8%!

I got a worse one... 25% through some horrid No-Credit check lot. After 15 months, refi'd down to 10% through Christian Community Credit Union. They are the absolutely greatest out there.. By the by, my car had over 100k miles on it at time of refi. Had to pay some cash since I was upside down, though. And they go by blue book value. They are just awesome. Google them.
Message 19 of 19
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