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score just increased to 703, should i refinance my auto loan now?

gnizzle19
Established Member

score just increased to 703, should i refinance my auto loan now?

i recently posted up a message regarding my recent purchase of a car at the end of march with an interest of about 15%, and a score of 640. my score just went up to 703 today and i was wondering if i can go ahead and refinance and get another loan with credit union or something sometime SOON because i think i can get a better interest with my credit score. can anyone please give me some advice on this and inform me of the best actions to take now. im currently paying almost 400 a month for a TOYOTA yaris and its for a 72 month lease, with less than half of it going towards my principal rate. i kinda wanted to get another car and with less payments a month.
Message 1 of 4
3 REPLIES 3
EDub357
Frequent Contributor

Re: score just increased to 703, should i refinance my auto loan now?

You would get a better interest rate with that score, but if you're trying to trade your car in and get another one, then there lies your problem.  You could probably trade the Yaris in, but you will have negative equity and will not lower your monthly payments. Just try to refinance the car you have and lower you payments and look to purchase another one after about 18 months of good payments.
Message 2 of 4
1111mel
Valued Contributor

Re: score just increased to 703, should i refinance my auto loan now?

Unless you put 20% down when you purchased the vehicle in March you are upside down on the car. When you drove off the lot your car lost 20% of its value and you have to make that up on the loan in order to refinance it.

I hate to say it but the 15% rate you got with a 640 score was about 6 percentage points too many....

Do everything you can to pay extra on it every month and get the loan down to refinance it later on.
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
Message 3 of 4
gnizzle19
Established Member

Re: score just increased to 703, should i refinance my auto loan now?

i think i was given the high percentage because im only 19 with a short length of established credit (8 months, 5 on average). so would it be wise to go ahead and join a credit union right now and just ASK them about it? now im aware of the whole losing value once the car's driven off the lot.. i just wish i was aware of this whole credit score and disputing some errors BEFORE i bought the car. thanks you guys for taking the time to answer by the way.
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