Refinance so soon?

[Anonymous]

I just recently got approved for an autoloan about 3 months ago. It was a 26,000 dollar car, I put 8k down and ended up finacing about 20k at a crappy 12.99 interest rate. I took the rate because my credit scores were sitting around 640 and I had a collection on my report. But fast forward to today, that collection was taken off and my scores jump up almost 100 points and now I'm in the 730 range. I'm strongly considering applying for refinance through dcu and trying to get the 1.49 percent. Do you think it is a good idea to apply now? Or maybe wait a few more months?

[guydiver]

DCU will pull EQ for the loan.  They will probably give you full book retail value.  Was this a new car purchase?  If so, you should be good to go based upon your previous down payment and LTV.  But you need to make sure that baddie is removed from EQ before applying.  Otherwise, I would go for it now.  If your scores and income support the loan, you should have no problem getting their 1.99%, or 1.49% with DD.  I believe DCU requires a 675 EQ Fico.  Are you already a member?  You can apply for the loan first, and if approved, they will require you to open a share account with them to become a member.  Some have reported you "might" get by with one hard pull by doing it in that order.  Otherwise, it will be one hard pull for membership, followed by a second hard pull for the loan, which may or may not also qualify you for their Visa card with the same pull. 

[sccredit]

I bought a truck in 2013, a 2012 Ford F150.  Financed about $28k on a $35k truck.  Financed it at 6.9%, the “very best” the dealer could do.  A couple weeks later I joined Logix and applied through them.  As soon as the registration paperwork came from the CA DMV I sent it over to Logix and 4 weeks after the purchased I had it refinanced with Logix at 2.69%.

Do what works best for you, don’t overpay if you don’t have to.

[SamsungHDTV]

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@Anonymous wrote:
I just recently got approved for an autoloan about 3 months ago. It was a 26,000 dollar car, I put 8k down and ended up finacing about 20k at a crappy 12.99 interest rate. I took the rate because my credit scores were sitting around 640 and I had a collection on my report. But fast forward to today, that collection was taken off and my scores jump up almost 100 points and now I'm in the 730 range. I'm strongly considering applying for refinance through dcu and trying to get the 1.49 percent. Do you think it is a good idea to apply now? Or maybe wait a few more months?

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In short: Yes, its a good idea to apply now.

Keep in mind that I am assuming all other factors are the same or better than 3 months ago. You should always refinance if your score has significantly improved and/or you have a good chance of getting a better rate no matter the time frame.

[TRC_WA]

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@SamsungHDTV wrote:

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You should always refinance if your score has significantly improved and/or you have a good chance of getting a better rate no matter the time frame.

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That's my plan.

My BK13 falls off in the next 8-12 months with early exclusion.

At that time I will see what I can do about my 4.49% rate.  Not all that terrible given my scores and the fact I put $0 down on a $40k car... but still plan to look to refi once I get the score boost from my clean reports.