I just bought a used car and since my interest rate is 21% because of bad credit what are my options. $19,000 financed for 6 years. There is no prepayment penalty. After I get the loan my father in law says he would help. So can I have my father in law cosign for a loan and pay it off that way or do I try to refinance with him after payments are made. Best options would be great...thanks!
2007-06-19 06:47:47 · 2 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
If you can get another loan (or hit the lottery) that has a lower rate, with your FIL co signing, do it today!! You pay interest until the 21% loan is paid off! The quicker you refinance, the more you will save!
One tip, try to double up your payments early in the loan. If you can make an extra payment one month, you can really increase your credit rating.
If your payment is due on the 1st of July and you make a second payment on the 15th (just one time) and continue to pay your normal payments on the 1st, of the following months you are actually paying a month early. If something happens, such as a payment check being delayed in the mail, or you having a brain freeze and forgetting to mail it till the 7th, the payment will still be considered on time.
The second payment in July would be considered the August payment. When you pay Aug 1st, you are actually considered to be paying the September payment and so on.
2007-06-19 07:07:30 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
Wow...that's a huge rate. With an interest rate like that, it might not have been the right time to buy a 19,000 car. There are plenty of used cars for less money out there.
That being said....refinance this today!
2007-06-19 15:00:04 · answer #2 · answered by Jay P 7 · 1⤊ 1⤋