Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
motorcross

0 Contributions
0 People Helped
auto refinance, good or bad for credit score?
current rate 17.01% since then my credit score moved to 737, still owe 9000 on vehicle with 2500 interest remaining at current payment plan. I know this will ding my credit score but i think i could save 2000, any thoughts?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
12 Contributions
3 People Helped
Most Helpful Response

Temporarily a little bad

Helpful to 1 out of 1 people

Without knowing ALL the details of your personal and financial life, it is a little difficult to give a blanket answer.  IMO, in the long run, it would be better to figure out how to refinance it.  As you indicated you think you could _save_ about $2,000, it seems that there is some time left on the loan.  And that is a lot to save.  See if the lender will do a rate adjustment for you.  Or see if the lender will do a refi themselves.  Otherwise, shop around for an auto refinance loan.  Other options could be to get a personal loan (rates are usually decent but should at least be better than 17%).  See if you can do a 0% balance transfer from that account to a new credit card.

The hit your score might take would be from the acquisition of the new loan.  Unless you are looking for more credit in the near future, don't worry about the hit, go for it and save the 2K.

Top Contributor
2031 Contributions
3158 People Helped

If you Leave it at the 17% How quickly can you Pay off 9000 Dollars?  Can you get another job or 2,  Extra Hours and Knock it out?

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.