@Anonymous wrote:
Hey all,
I bought a new truck about 17 months ago and received a rate of 3.24% through Chase Bank (this was though the dealeship negotiating). At the time my credit score was about 740, but I decided to lower the limits on my CCs in order to avoid my debt going through the roof. All in all, my scores dropped to around 605. Since then, I've paid off the CC debt and my scores are back up in the 660-690 range. My question is this. Is it woth trying to refinance my auto loan with Chase? At the time, every other creditor came back with around 5-6%, so I thought I did great to get 3.24% with Chase. I assumed this was because I have a checking account through Chase, and two credit cards through them. I have never missed a car payment or credit card payment.
Do you think it's worth trying to refinance the auto loan through Chase or is it not worth the hassle? If I do attempt to refinance, and they offer me a higher loan, would I be able to keep my current rate?
Thanks!
I agree with the previous poster. Unless you owe a SUBSTANTIAL amount then it just isn't worth it since you're already at 3.24%. You're never going to get 0% on a used car (new purchase or refinance) and the hit you'd take in your credit for closing one and opening a new auto loan just doesn't make sense in my opinion.
Rough numbers... say you refinance $25k @ 2.49% (lowest rate I've seen in a quick search for used rates) for 48 months. You'd save about $8 bucks a month for a total of $384 after 4 years. For such a small saving I can't imagine that it'd be worth the time, effort, and again, the ding for adding another auto loan to your credit report for what amounts to $384 over a 4 year period.
