I used to own a Honda Civic financed with Capital One Auto that got repoed in Sept 2016 before filing bankruptcy. Around January 2017, the car was sold in an auction and the account was sent to Capital One collections dept. Capital One was coming after me for the remaining balance of about $7000.00. In April 2017, I decided to file bankruptcy in which I included this balance.
I have been checking the prequalifier on and off since my discharge but each time I tried I was denied due to previous account. Today, I check it assuming it will say the same thing but to my surpise I got an "Congratulations, you are preapproved' (2 years after the orginal CO). My current auto loan interest rate is 16.8% (monthly payment $327.00) and Capital One is offering 10.88% (monthly payment $264.00).
Now I'm faced with a choice...Should I take the 6% reduction in interest now or should I wait a little longer for my scores to increase to hopefully get a better deal later. My current auto payment is not bad (I'm actually 2 months ahead in my payments right now) but the interest rate is what's killing me.
Any advice will be appreciated
Thanks. My scores have been stuck at the same numbers since I opened my last card in April. I’m hoping to get a good increase in April next year when all my accounts will be 1 year or more.
I am close to a “Good” score so I guess I can wait a few months to see what happens.
Your signature says gardening til January 2019. I dare you to stay in garden.
But in all seriousness, give it a little time before you get to the higher scores and try shopping around with CUs - they may give a better rate.
lol...Staying in the garden is hard.
You are right the CU may offer me a better rate. I'll hold out a little longer. Thank you
You are right the CU may offer me a better rate. I'll hold out a little longer. Thank you