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Auto Refinance

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Auto Refinance

I bought a car in 3/11 with a 21% rate. I needed a car and this was my only option and the price was a steal... No my credit is 100pts hight give or take and I want to know if it would be worth it on my report to refy @ 10%, lower my rate/ payment, and have a fresh paid in full auto loan? Or should I keep it the same and not have a "new" tradeline. The new payment will only change things by $30-40 a month.

11/2011 EX: 557 TU: 553 EQ: 633
02/12 Midscore EX: 650 Smiley Happy
Message 1 of 8
7 REPLIES 7
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Super Contributor

Re: Auto Refinance

Refinancing isn't going to boost your FICO score. You will have a new account
reporting plus inquiries. But that 21% interest rate is a killer. Are you paying extra each month, and will you be paying it off early ?? It might be worth refinancing just to get out from under it. How much are your payments and what is the remaining balance on the loan ?
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 8
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Valued Member

Re: Auto Refinance

I just refinanced with capital one.  Its pretty hard to justify payin that high of interest.  When my capital one refinance hit my credit report I got a score watch that my score had gone up 10 points.


Starting Score: 500(06/11)
Current Score: 645 (04/12)
Goal Score: 680


Cap 1-500, best buy MC-300, orchard bank MC-300, first premier-300, amazon-600. All new since July '11 no late payments and carry no balances.

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Message 3 of 8
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Regular Contributor

Re: Auto Refinance

I'm trying to refinance line though my credit union and it didn't work out well for me. I honestly thought about trying to get approved for another car instead.
CITI - $3500 - CAP1 - $750 - RZMC - $600 - BOA - $600 - CAP2 -$500 - Credit Union $500

TU: 707 (From Wal-Mart's website) * Finally made the 700 club!!!!!!!*
Message 4 of 8
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Re: Auto Refinance

I only have about 5k left to pay. Rate won't change thigs to much at this point....

11/2011 EX: 557 TU: 553 EQ: 633
02/12 Midscore EX: 650 Smiley Happy
Message 5 of 8
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Regular Contributor

Re: Auto Refinance

I have about a little under 12k on this car and 19.99% is super annoying to pay.
CITI - $3500 - CAP1 - $750 - RZMC - $600 - BOA - $600 - CAP2 -$500 - Credit Union $500

TU: 707 (From Wal-Mart's website) * Finally made the 700 club!!!!!!!*
Message 6 of 8
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Super Contributor

Re: Auto Refinance


@indianschool wrote:

I only have about 5k left to pay. Rate won't change thigs to much at this point....



Sounds like you are almost there....Just keep paying it down and next time you buy a car you'll get a much better rate...Smiley Wink

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 7 of 8
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Re: Auto Refinance

Credit union today quoted me at 12% It would save me nearly $90.00 a month and that will lower my DTI for my mortgage too Smiley Happy


@pizzadude wrote:

@indianschool wrote:

I only have about 5k left to pay. Rate won't change thigs to much at this point....



Sounds like you are almost there....Just keep paying it down and next time you buy a car you'll get a much better rate...Smiley Wink


 

11/2011 EX: 557 TU: 553 EQ: 633
02/12 Midscore EX: 650 Smiley Happy
Message 8 of 8
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