Refinancing

[Newbie2018]

In the next few months I need to refinance my vehicle. Currently the loan is with Santander 22.1% int. 62 month loan(down to 51) and $8,222 left on the loan. Plan on using my local credit union to refinance. I was going to go in and drop $2000 on it with Santander. Should I wait til after I refinance to do so or before? Also is refinancing a good idea with a loan so little? Just curious because I've never refinanced before.

Do they use FICO auto scores?
What's a good score to get a good apr?
Do I have to put a down payment? Not sure how it all works.

[Anonymous]

---

wrote:
In the next few months I need to refinance my vehicle. Currently the loan is with Santander 22.1% int. 62 month loan(down to 51) and $8,222 left on the loan. Plan on using my local credit union to refinance. I was going to go in and drop $2000 on it with Santander. Should I wait til after I refinance to do so or before? Also is refinancing a good idea with a loan so little? Just curious because I've never refinanced before.

Do they use FICO auto scores?
What's a good score to get a good apr?
Do I have to put a down payment? Not sure how it all works.

---

What is the book value of the vehicle? If you are underwater, you might need to drop the money on it before you refinance to get the LTV in check.

If you are not underwater, you would have the choice of:

1) throwing the $2k on the loan now and saving some interest for a few months until you refinance

2) wait and refinance, then throw the $2k on the new loan to bring the amount owed vs amount borrowed down and potentially help your score.

[Newbie2018]

Kelley blue book value says:
$7,219 - $9260 for fair market value (dealer)

Private party
$6392- $7905

What I have left to pay on the loan is $8222. The starting loan was $8700 I believe.

What would my credit score need to be to get a decent rate if that is a proper question to ask.

[dabrian]

Refinance today if you can, I would call DCU, Penfed, and NFCU tomorrow with that rate.

[Newbie2018]

My scores are shaming. I don't think anyone will want me lol. Those are all credit unions? Do I need to be a member first?

[DeeBee78]

---

wrote:
My scores are shaming. I don't think anyone will want me lol. Those are all credit unions? Do I need to be a member first?

---

You can apply for loans with most credit unions without being a member. If you're approved, then you can go through their membership process, which usually involves joining an affiliate organization or paying a small membership fee to an organization that grants you memebership. 

Also, Santander is very specific about how they apply your payments. You will have to call them after dropping $2K into the loan, and tell them to apply it towards principle balance, not future payments (which is what they'll do if you don't call them). 

[Newbie2018]

Thank you for the feedback.

[Newbie2018]

Two more questions. If I decide to go with DCU, will they deny me based on inquiries? I have alot of them. Also what is the income threshold minimum in order to qualify? I have low income.