Refinance or Auto Trade?

[Anonymous]

Guys,

A little over a year ago I managed to get an auto loan with an 18.5% interest rate with a low score under 500. Yeah i know its high but I had to take the offer because I had a job and I needed transportation. Anyways I am thinking to refinance my loan to see if I can lower my payments or trade in my car and open a new loan to establish better credit. I just don't know which one would raise my score a little  since im working on restablishing my credit.

Should I trade in my car or refinance to increase my credit score?

My scores are TU - 504 EX - 615 EQ - 596..

Thanks

TS

[Tuscani]

Refinancing won't increase your score. In fact, it may even drop it in the short term. You should be more worried about refinancing to save money.

[Anonymous]

How about trade in?

[Tuscani]

What's your goal here? Lower payment? Less debt? Increase scores?

Do you have any negative equity? 

[Anonymous]

Yes I have Negative Equity. I have some 13-14 accuonts that are 5-6 Years Old and will be removed sometime next year hopefully. Lately, I  have a school Loan that  am paying and  a Car Loan that is a year old and never been late, One Secured Credit Card, and Secured Loan that I both opened at my Credit Union about 2 months ago and also never late. Ever since then, I've noticed my score increase even with a Public REcord from a Attorney that filed suit on a collection on 2 of 3 CAs.

 Mainly im looking to increase my score because I want to buy a new home soon. Should I try an unsecured credit card with my credit union to help raise my score or go for an Auto Loan on a Trade-In?

Thanks for your help.

[Anonymous]

i have this same problem although i dont really want to trade in im looking to refi at a lower rate at the time my scores were in the basement 476 and i really needed a car to get back and forth to work, my problem is i havent had the loan out that long and may end up getting hurt bad with a refi right now.  my goal is to get a lower rate and save some freakin money.  my EQ is 575 right now.

Message Edited by jenkins on 07-08-2007 07:11 AM