Should I refinance? How?

[Anonymous]

Hi, I bought a used car in 06 and I have about $5000 left on the loan. When I applied for the loan, I have extremely bad credit and was approved with Chrysler. The problem is, the interest is about 20%!!!! I recently looked at all of the bills and I can't believe I am paying more than $100 in interest every month. My current FICO is 630 and I would like to refinance through some other company, is that still possible with only $5000 left on the loan? If so, with whom?

[Creditaddict]

your problem is going to be your 630... I would talk to your local credit union.

[Anonymous]

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@Creditaddict wrote:

your problem is going to be your 630... I would talk to your local credit union.

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Is 630 a low score? I called Wells Fargo and they were able to approve me with a 19% for 36 months? That's like a 1% decrease. Should I take that offer or should I move to a credit union? Can a FICO630 do better than 19%?

[Creditaddict]

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@Anonymous wrote:

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@Creditaddict wrote:

your problem is going to be your 630... I would talk to your local credit union.

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Is 630 a low score? I called Wells Fargo and they were able to approve me with a 19% for 36 months? That's like a 1% decrease. Should I take that offer or should I move to a credit union? Can a FICO630 do better than 19%?

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Look into Navy Federal CU

[Anonymous]

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@Creditaddict wrote:

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@Anonymous wrote:

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@Creditaddict wrote:

your problem is going to be your 630... I would talk to your local credit union.

---

Is 630 a low score? I called Wells Fargo and they were able to approve me with a 19% for 36 months? That's like a 1% decrease. Should I take that offer or should I move to a credit union? Can a FICO630 do better than 19%?

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Look into Navy Federal CU

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I am in no way affiliated with the Navy nor any military branch? How can I join?

[elzgarland]

I would definitely try a credit union. I just refinanced my car with a local credit union with a credit score of 648 at 8.4%. My original loan was 17.59. I took a copy of my credit report to my credit union for them to look at before I applied, and they suggested what they could do for me upfront.

[Lel]

You can look into joining any credit union in your area; many might be able to offer you better terms on the refinance.  A drop to 19% from 20% is not going to make a significant impact on your interest obligation.

The National Credit Union Administration has a search tool that can help you look for CUs in your area.  Alternatively, you can look to join one of the more nationally-known CUs (such as NFCU or Pentagon Federal).  NFCU does have some restrictions on membership, but you may qualify.  Anyone can join PenFed, if you either fall into one of the membership classes or if you join a certain association.  A lot of other popular CUs have similar provisions for membership.

[2DOORIMPALA]

Wow how are all you guys getting these high interest rates? I just bought a new ford focus and got 9.9% from FORD and my credit is only 600 fico..... I still think that is high though...

[Anonymous]

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@2DOORIMPALA wrote:

Wow how are all you guys getting these high interest rates? I just bought a new ford focus and got 9.9% from FORD and my credit is only 600 fico..... I still think that is high though...

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1- Score is not the only determiner for the credit worthiness/interest rate of a lender. Time on job, vehicle bought, length of file along with many factors can contribute to your score.  Just because you have a 730 does not mean you will get the best rates as well.

2- if you have a 600 and got a 9.9% from Ford Motor Credit you may have:

a)had a history with Ford

b) taken an offered subvented or manufacturer provided rate along with or in lieu of som eof you rebates

c)FMC is a division of Ford and sometimes to help make sales numbers for Ford may be more inclined to make a deal when other banks will not. 

[Anonymous]

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@Anonymous wrote:

Hi, I bought a used car in 06 and I have about $5000 left on the loan. When I applied for the loan, I have extremely bad credit and was approved with Chrysler. The problem is, the interest is about 20%!!!! I recently looked at all of the bills and I can't believe I am paying more than $100 in interest every month. My current FICO is 630 and I would like to refinance through some other company, is that still possible with only $5000 left on the loan? If so, with whom?

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A refinace will be contingent on how much you need compared to what your car is worth. A 6+ model year used car may not be able to be financed for $5,000. SInce your loan is with Chrysler, and I am sure they have no early payment pre payment penalties, I would recommend Ramen noodling your lifetsyle, cutting all costs where you can, and simply making extra/additional payments to pay the note early.