refinancing

[Anonymous]

I bought a car for 13,777 dec2008--Its a Dodge Nitro 2008----I received a pretty high interest rate  19.99% for 6 years...I have ok scores, but the reason for the high Interest rate was that I had 2 med collectiosn listed on my Eq report----I do plan on getting those removed hopefully within 12 months....So my question is....Would the best time to do a refinaicing be after 12months of payments and collections are removed....

And also...I wanted to make atleast 2 or 3 extra payments a year, would that be a bad thing to start that now, if Im planning on refininacing in 12months....And should I stick with Chrysler Finincial which is who im fininced with now, or look else where....

o yea and there is no penalty for me making any extra payments with my loan

[SCF]

Hey shay,

That interest rate is VERY high, especially on a 6 year loan.  Definitely check out the Rebuilding Your Credit board and learn about the HIPPA process to remove medical collections so you can get your score up and that rate down.

What are your scores now?  I think that when you refinance should be based on what kind of improvement you see in your scores.

Definitely start making those extra payments, when you refinance you probably will only be able to do it for 90-100% of the value of your car, so make sure you won't have any negative equity.

For a better rate, I would shop around to credit unions, starting with those in your area and then expanding to national ones like Penfed.

Hope that helps!

[Anonymous]

My scores from myfico are...639TU 646EQ 730 EXP...TU HAS 1 COLLECTION, EQ HAS 2 AND EXP HAS NONE---IM working on getting the med collections removed

[Anonymous]

Ok i need to note that,,,i had to have a co signer because im still temp at my job, which will change far  before the time I try to refinance...

Message Edited by shay2009 on 01-19-2009 04:17 PM