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
Vannila

0 Contributions
0 People Helped
I want to apply $8,000 cash toward existing auto loan to lower payments, what do i need to do?
I want to refinance, but need decent interest rate, the loan I have is at 1.9%.

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1160 Contributions
362 People Helped

??? what? A 1.9  interest rate is phenomenal. All you have to do is go to the lender holding your loan and tell them you want to put said monies toward the loan.

Top Contributor
22 Contributions
31 People Helped

1.9% is pretty low and I'm not sure if you can get better.  On the question of the $8K, contact your lender and tell them that you want to make a large payment and that you want to apply it to the principal only.

Top Contributor
554 Contributions
233 People Helped

I would contact the owner of your loan now and see what programs they have.  You most likely will not get a refi for anywhere near the interest rate you have now, BUT i would do the calculations, as paying a higher interest rate with a much lower principle can very often result in much lower iinterest fees over the life of  the loan. So do not discount the power of reducing principle and paying a higher interest rate.  Many times when buying a car a cash back offer applied to principle will save money over a very low interest rate, sometimes it is even a better deal than 0%.

Results 1-3 of 3Results 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.