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anyone please help me.

Established Member

anyone please help me.

some background information:
- bought 2008 toyota yaris on 3/28/08, interest of 15% for 71 month & no down
- payments started on 5/9/08, with a co-borrower who's current credit score is 590
- didn't check my own credit beforehand, recently disputed some errors and my own credit score increased to a range of 703-719 from trans union, experian, and equifax.
- i only make about 700 a month. (im only nineteen..)

i was looking into refinancing and wanted to know when is the right time.
i recently joined a credit union and was informed that they can possibly refinance my car as a new car, meaning a lower interest if the mileage is under 5000, which is currently at 2400. however, since i didn't make a down payment, i'm capable of making an extra payment of about a thousand to have a better value to owe ratio, ONLY if i can get approved for a re-finance for sure. are my chances of getting approved high, even though i haven't made payments for at least 6 months to a year without a co-borrower (considering my low income)?

OR should i wait at least 6 months, which means my 2008 car would be refinanced as a USED car, thus higher interest. im willing to do this as well, along with an extra payment of about one thousand, ONLY if my chances of getting approved are higher and more certain.

what should i do? my monthly payments are 375, with only 100 going towards my principal balance ):

thanks for taking the time to read and any suggestions will help.
Message 1 of 7
6 REPLIES
Established Contributor

Re: anyone please help me.

you would probably need to have a 1yr payment history before refinancing at a better rate for a few reasons:
 
-you have a co-signer right now (which indicates lending institution doest think u are stable)
-your credit history is short
- you dont bring in enough money monthly (so you need to not take on any more debt for that yr. while you prove your good payment history).
Message 2 of 7
Frequent Contributor

Re: anyone please help me.

If i were you, i will refinance now. You do not have to wait six mos to refinance. Some forum members have refinanced after just three mos. Your scores are pretty good for a good bargain, but the only problem could be your income. penfed is currently doing ref at 4.25 for up to 60 mos. You may want go to their website and check it out. i hope members more knowledgeable in auto deals can offer their advice on your situation.
Message 3 of 7
Established Contributor

Re: anyone please help me.

you accepted a brand new auto loan with a co-signer and although you have flawless credit, you have a very short credit history.
 
dont start applying for things. it will drag your score down and then you wont even be able to refi in a year.


Message Edited by CreditDrama85 on 06-11-2008 04:39 PM
Message 4 of 7
Valued Contributor

Re: anyone please help me.

You need let your history age a little bit before trying to refi, you can always refi down the road because the banks will still be there! Prove that you are credit worthy and they will be glad to refi for you! Some credit unions offer 0% financing even on used cars so my want to research that! My CU told me as long i meet the requirements then they would approve it!
 
GoOd LuCk!

I'm not a kid anymore, I've done a lot of growing up! Smiley Happy
Starting Scores Sept '15- EQ-555, TU-542-EX-536
Current Scores as of June '16 - EQ-592, TU-635. EX-629
Gardening since June2016
Message 5 of 7
Highlighted
Established Member

Re: anyone please help me.

THANKS FOR ALL THE HELP! Smiley Happy

i was thinking..
what if i had a co-signer who's retired but with a good credit score? along with a thousand down payment to have the value of the car equal to what i owe, due to the tax i had to pay initially with wachovia.

do you think credit union would approve me for a refinance NOW with a low interest rate?
Message 6 of 7
Super Contributor

Re: anyone please help me.

I would print your CR and take it to the credit union and see what they could do.  They might not give you an answer but its worth a try and it wont cost you an INQ.
01/23/2018: FICO 829 EQ 827 TU 831 EX
Message 7 of 7