Post # 1
We bought a car at a really high interest rate (it’s so bad I don’t even want to post it..ugh) and I’m already thinking about refinancing. Neither of us have the best credit but we are working on it and hoping a year of on time car payments will help with this (we are both on the loan). How long should we wait before trying to refinance and what specific criteria should we work on besides making on time payments each month? Any tips from anyone who has refinanced their car?
Post # 3
I would start at your local credit union. They usually have better rates that banks. I would also go to annualcreditreport.com and pull your free credit report. You may want to pay the extra $5 for your score. Then look up your score online to see where your score falls. I believe 720+ is excellent credit and you will get the best rates. Also, use that report to see about any fraudulent or blemishes to your credit report and clear them up ASAP before you try to refinance.
Post # 4
@CanAmBride: Yeah I probably can’t get my credit score to 720 within this next year lol but I’m hoping for the mid/high 600s at the least so I can hopefully cut my credit score in half. Which is still not a good interest rate but when your interest rate starts with a 2 anything is better!
Post # 5
Hi Kate – I work in a dealership. Anything you can do to help your credit score is great – use your credit card and pay it off immediately. Pay rent/mortgage on time. If you can pay more than your minimum payment on your car per month, do it. If you can save up a little money to put down when you refinance, do it. Depending on how low your score is and how long you’ve had the vehicle, I would wait 8-12 months before refinancing. That way you prove that you can pay the bill to your lender, but refinance it with a significant change.