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
v55

0 Contributions
0 People Helped
Im on a fixed income, can I refinance my car loan ($26,000) to lower my monthly payments
I want to keep the car I have my credit score is over 700 bit my payments are too high for my income

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
543 Contributions
244 People Helped

Well...

It's completely possible, but note that your car depreciates, so most lenders would be leary of refinancing a loan for an amount higher than the car's actual blue-book value (for instance: if you have $26k left on the loan but the car only blue-books for $15k in its current condition, you'd better have a score closer to 750 than 700.) 
--

Also, along the same vein, a lender is going to look at how much further a car will depreciate over the life of the loan, which will likely factor into their decision.

--

If I were you, I'd talk to a lender and ask before they do a credit inquiry, to see if your car's value is high enough to justify the loan re-finance (or you can check yourself online by getting the blue-book value of your car and comparing that to the loan principle left to pay down).

Result 1-1 of 1Results 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.