Auto Refinance Questions

[Anonymous]

Hello Members, 

Post Discharge Dec 2019 I have 3 cards revolving total credit limit is $2100 ($1500 (recent one this month), $300 and $300) 

I gave up the old car in BK which was upside down and brought a used 2016 Nissan at 20 % with zero down through prestige financial,  I have 9 payments on time on this and looking for re-finance options. so I go to cap one to try a pre-qualify and it says my payout amount is more than actual value and I cant go past that screen. I really want to get my monthly payment of $495 down to something lesser.

My questions are

1) Should I wait for few more months after making on time payments and try re-finance as I just took a HP for the third credit card with a bit of higher limit $1500 in May.

2) Should I start looking out for re-finance now , credit karma recommneds open road lending , I didn't want to apply before checking with you all here

My scores EX 576 TU 587 EXPERIAN 597 - FICO scores for myFICO

Please advice on how to go about this scenario. Thank you so much and stay safe all -)

[Anonymous]

This isn't an issue with your credit, you are upside down again and owe more than the car is worth. This is the trap all too many folks fall into when they take a 20% loan and say "oh, but I'll refinance later."

Nobody is going to refinance this car until you get the amount owed equal to the car's current value. (Note: there are some lenders will actually finance 120% of the car's value.)

You will need to come up with the difference between what is owed on the car and what is worth . . either in one lump sum OR by paying additional on the principal each month to eventually get there. That is, if you even have a loan that allows you to pay extra on just the principal. (Check w/ your lender to see how you would do this.)

It is likely you will need to make double payments or more for a while to get there. 

[dragontears]

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@Anonymous wrote:

This isn't an issue with your credit, you are upside down again and owe more than the car is worth. This is the trap all too many folks fall into when they take a 20% loan and say "oh, but I'll refinance later."

Nobody is going to refinance this car until you get the amount owed equal to the car's current value. (Note: there are some lenders will actually finance 120% of the car's value.)

You will need to come up with the difference between what is owed on the car and what is worth . . either in one lump sum OR by paying additional on the principal each month to eventually get there. That is, if you even have a loan that allows you to pay extra on just the principal. (Check w/ your lender to see how you would do this.)

It is likely you will need to make double payments or more for a while to get there. 

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This 

Even if your scores were 850 no one will refi a loan that is extremely underwater