Should I Refi?!

[Anonymous]

Hello All!

So, currently I'm still in school--and my parents both have horrible credit, but a dealer financed me a $14K car at 12% for a 60mo term.  My scores were high enough they didn't need proof of income.  And thankfully my parents are paying for the car---payment is $332/mo.  

Questions!  

I'm already six months into the loan.  Payments are fine for my parents.  Should I keep on making the payments until the loan terminates?--I'm paying about $5K in interest on the loan. 

Or should I Refi in a year and a half?  

I'm thinking just keep the loan as is...so it shows a good payment history for 5 years and that I can manage the monthly payment. 

What do y'll think?  

[StartingOver10]

IMHO it would be better for you to refinance out the high interest loan when you can do so.

Remember, making sound financial decisions trumps a fico score bump. And, I really don't think it would be better for your FICO score to stay in a bad loan.

[mtrsprt]

I'm confused...  Are your parents making the payment, or are you?  My advice is to join a local credit union, and after about 6 months of membership, look into refnacing with them.  The rates will be almost half of 12% or less.....

[Dustink]

Do you not have verifiable income? It may be hard to get a decent refi without it.

Why are your parents making the payment? Their horrible credit indicates that they need to be working on their own situation instead of yours.

[Creditaddict]

what is the car?

who is current financing?

what was score then?

[Anonymous]

Refi if you can.  Banks view the new loan as a continuation of the old loan.  It will save you a fortune in interest and not harm your bank "status"