Try to refinance or buy a new car????

[annicenicole]

Hello!

I currently have a 2009 Honda Civic with a loan balance of $11,300. and I believe has a trade in value of $6600-$7000. I just purchased this car in Sept. 2011 after my Mazda 3 caught fire. At the time of purchase my credit scores were in the mid 500 range I believe and I was not planning on needing to but a new car at the time. So I ended up getting approved through Capital One Auto Finance at a interest rate of 20.59% YIKES..LOL! I have never missed a payment on this account.

Now I am wondering if I should try to refinance my car or would I be better off buying another car. If buying another car is in my best interest I would like to go through Honda to finance a Honda Accord.

My current scores are EQ. FIco is 564, EX. Fako is 634, and TU 628. I am expecting a jump in all of these scores over the next month or two as I have just had my CLI's increased on my 2 capital one credit cards. Card (1) CLI went from $320 to $2,350  Card (2) went from $500 to $1000 (This is a student card and I am no loner a student). These are improved score for the month of February because I went from 80% utilization to 6% because I paid them down, but the higher limits are not reporting as of yet.

Also I have a derogatory Installment account that has been reporting as 120 days late, even though I am now on a payment plan. So I am planning to pay it in full by end of April.  It is for unpaid tuition and they are reporting it as a one month installment of $1,570  until paid in full. I made an arrangement to pay $200 a month, and have done so on time for the last two months but that is doing nothing for my credit score.

Last but not least I have three collection items totaling $966.00 that all occured in 2013. I have sent out PFD's on them but yet to receive a response. If I don't here anything soo I will just go ahead and pay them off. So that I have no unpaid negatives by May 2014.

Sorry to provide so much detail, but I want the responder to have a full picture before giving advise. Thanks in advance!!!

[Remember0]

Those PFDs should work. When were they sent? Make sure to get it IN WRITING. Getting rid of that will definitely help.

The unpaid tuition: I'd argue it's inaccurate reporting. You may have more leverage after you pay it off, but it's definitely accurate to call it a installment loan with one payment. Would work on disputing (ask the experts) maybe after it's PIF'ed. Even now, I'd speak with an executive or someone high up on getting it delayed. Stress your on time payment and that the existance of the account is HURTING your ability to pay them back.

If the good will doesn't work, I'd maybe dispute. Maybe the experts can chime in as to whether to wait till paid off? Who is the creditor listed on that account (your college?)

If you can PFD those collections, and get rid of that unpaid tuition, you'll be golden. We're talking like 0.9% rates - 1.9% rates for 60 months. Even if you can only get one of them off, it'll help to significantly better your FICO.

----

Refi depends on NADA Retail. Look up NADA retail for me. What doesit look like before and after mileage adjustment?

d student loan, is it being rehabilitated? So that might remove the late marks, if not maybe ask if it can be rehabbed?

Still though your FICO hurts for refi. I mean FICOs look like mid-500s. TU 624 a fico or fako? We really need to work on those PFDs and improving the installment account. IMO, ask for advice here in the Credit Card/Student loans/Rebuilding your credit forums. Pick only one though, I probably recommend the rebuilding one.

----

A new car is easier to "hide" negative equity in. But you'll have the same APR issues until your FICO goes up to at least 620+ (680+ for Honda Top Rate).