Should I refi?

[Anonymous]

Pulled EQ04 today in hopes of getting the magical 675 required for DCU'S 1.99 rate. Unfortunately I'm at a 671. My question is, am I better off waiting for 4 points to magically show up or should I attempt a refi now and embrace any better rate?

Here's where I stand

Amount: 14,154.81
Apr: 8.89%
Started as a 73 month, 56 left
Interest paid to date: 1,520.41

We are buying a house in 1 year if that makes any difference.

Bonus question, will checking multiple CU'S kill my credit?

Thanks!

[EddieK]

Do you have any CCs where you can reduce utilization?  If so, I'd do that since your score would go up when it reports next and you'd most likely get the needed points.  If not, I'd go ahead and refi now.  And yes, most credit unions will do a HP for loan approval so your score would most likely get dinged.

[Anonymous]

Thanks for the reply, forgot to mention I have 13k in open credit from about 3 or 4 cards dating back to 2007. I have 0% utilization so no luck there

So each CU I check will hit my credit negatively? Bummer.

[EddieK]

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@Anonymous wrote:
Thanks for the reply, forgot to mention I have 13k in open credit from about 3 or 4 cards dating back to 2007. I have 0% utilization so no luck there

So each CU I check will hit my credit negatively? Bummer.

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Are all your cards reporting 0?  If so, have one report 1-9% and you'd probably get the points you need.

[cartwrna]

Raise your utilization to around 1%, even just $20 on a card reporting is better than a $0 balance on all cards. FICO actually gives you less points for no balance vs a small balance on one card!

[Anonymous]

You sir, are a gentlemen and a scholar. I didn't even remember that 0% is worse than 1%. I'll give that a shot and wait for it to report before applying

[Anonymous]

I went ahead with the refi and got what I figure. Here's the details!

DCU
loan amount 14,154.81
APR 4.49 (3.99 with checking account + direct deposit)
Length 60 months (went longer to lower monthly payments so when we buy the house it's better)
EQ04 score 671

Saving $73 per payment and $1,373 in interest

Thanks for your help guys!!

[Anonymous]

Forgot to mention they used the same hard pull to give me a $5k credit card with an APR of 15% and I confirmed they do refi the loan and adjust cc Apr we yours score improves.

[cartwrna]

Congrats! You'll love DCU, I do so far! Once you get to 675 they'll lower your CC rate to 11.5%, im not sure where the next tier is. 676 got me the 11.5%.

[Anonymous]

Thanks!! She told me the lowest it goes is 8.9% after you reach 700 I believe she said