I got my car over a year and a half ago... it was financed @ 19%!!!!
Is it bad to refinance?
I have a few credit cards; not behind in payments (or past due) but almost maxed out! I have also been @ my job for two years now...
Would it help to refinance?
If so, how do I go about doing this?
2007-03-03 10:50:20 · 4 answers · asked by crystal j 3 in Business & Finance ➔ Credit
also I don't know if this matter but
- I don' t use the credit cards now & I know you don't keep credit if you get rid of them!!
--Recently I have a few offers to refinance my car - in the mail.
2007-03-04 01:49:24 · update #1
19% is very high.
Having credit cards that are in good standing is definately a plus, but having them nearly maxed out is a major score killer.
Before you speak to any bank or credit union about a refinance, you might pay down the cards to at least under 30% utilization.
If you don't belong to a credit union (CU), you might want to join one. You would probably find your best rates on a refi from a CU.
2007-03-03 11:31:40 · answer #1 · answered by echo 7 · 1⤊ 0⤋
If the car is not to old, and you have good credit you may be able to refinance with a good lender. On the other hand the first lender has a way of taking the interest early in the pay back and you may be surprised to learn how much the pay off is. Also you have to consider the value of the car now to a lender, compared to what the first lender valued it.
2007-03-03 12:55:56 · answer #2 · answered by rallman@sbcglobal.net 5 · 1⤊ 0⤋
Your real problem with refinancing the car is NOT your credit score. Unless you made a substantial down payment, you own more on the car than its worth. Most lenders won't give you a new loan on the car for more than its worth. Your current lender is unlikely to give you a better rate when they know you can't refinance with someone else.
2007-03-03 13:08:07 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Refinancing the car is a bad idea, if you use the extra money to pay on the car, they will charge a refinancing fee. Small gain, better gain would to be to cut up the credit cards and if you can't use cash then don't get it, if you are living off the credit cards now, then cut out some of your unneeded cost, long distance, cable, internet,ect intil until you get your bills in order. Even little things like clipping coupons, make all the trips to town in one day,ect.
2007-03-03 11:33:59 · answer #4 · answered by shocker83_fear_me23 3 · 0⤊ 2⤋