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Refinance question

Regular Contributor

Refinance question

My co-signer on my auto loan wants off of it even though it is reporting as 100% on time no lates for the last two years. With my co-signer, through his credit union, we had a 3.5% interest rate on a 66 month term for a used vehicle. I applied through Capital One and got approved, but at 13% more. I have two negative accounts on my credit for turned in vehicles when my family went through a rough patch in 2008.


Unfortunately I will be accepting this wretched interest rate so I can get the co-signer off. My question is how long should I continue with Capital One before I try to refinance again?

03/19/2011 EQ: 627 EX: 602 TU 590 (lender pull) 07/16/2011 EQ: 646 EX: 629 TU 647 Fell off the wagon in 2012. Starting over in 2013.Current Score: 01/07/2013 EQ: 646 EX: ??? TU 608 Goal Score: 700 club

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Re: Refinance question

Why not apply again at the CU or elsewhere?


If you've already taken the inquiries from Cap One for the auto refinance, you can't do yourself any further harm in terms of FICO scoring in continuing to apply for auto loans over the next 30 days (FICO '04, shouldn't take you this long though).


CU's are throwing money at people to take their auto loans, I'd look elsewhere before accepting the Cap One offer unless you absolutely have to.  Clean auto tradeline for the past two years, I suspect you can do better than 16.5% from a number of lenders.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)

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