I have had bankrupcy and repo in the past 5 years. My credit score now is 620 and they have me at a 15% interest rate. I had to have a car. My old one had over 200,000 miles, was 13 years old and was in need of major repair very soon. My payments right now are doable, but eventually I would like to refinance for a lower rate. My credit history since all those issues has been fine. How long should I wait to refinace? I have heard everything from 6mth to 2 yrs. Also when I do, do I have a better chance of going through the same company? AND…..should I try to pay a little more every mth now to pay off some of the interest or how does that work? I got the car for about $3000 less than bluebook price, so I got a really good deal.
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YOU SHOULD TRY TO GET REFINANCE FROM OTHER BANKING CO. AS YOUR CREDIT HISTORY IS FINE, OTHER BANKS CAN OFFER YOU UPT0 14 %
The more you pay, the less interest you are charged. Best bet is to get a loan that is bi-weekly as you will be paying down the principle on the loan faster than of you were paying once a month. (Interest will add up more throughout the month)
Not sure what to tell you about the refinancing itself. I always read that you would have a hard time getting loans up until 7 years after you declared bankruptcy, but I haven’t been in that situation. I would talk to the financial institution you deal with and see if they can’t help you out. That or shop around and see what another bank can do for you.
Auto finance is what I do for a living and you need at least 12-18 payments made as agreed to refinance.
The same bank may not want to refinance to a lower rate. A different bank may want your business and refinance. Banks love to take business away from other banks. But whether or not a bank will refinance depends on their rules, and rules are different for each bank – lending policies from one bank to the next can differ from day and night so just try and see what they say.
Paying more if you can on the loan lowers the finance charge you pay. Your principal ends up going down a little faster and therefore your finance charge.