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Posted in Auto Loans
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Question By
Tbrooker11

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Should I refinance my car now or in a year?
I just purchased an 07 Honda Accord EX-L. My current interest rate is 24.99% because I was a first time car buy with a fair credit score. Should I refinance my loan now through something such as Blue Harbor (Provided by Credit Karma) down to 4.99% or should I wait lets say 6-12 months paying it off at the 24.99%? MY credit score has improved to a higher number but I only just bought the car over a month ago and have not made a payment on it. Will refinancing, if I am turned down hurt me at all or is it a risk free attempt to lower my interest rate? If I try to refinance now, and get turned down, can I try again in 6-12 months? Thanks in advance for the help!

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Wait

Helpful to 8 out of 8 people

I agree with Jokerzwiffey's It is ideal to wait 6 to 12 months to refiance, but ill even wait a little past that. However my friend you got ripped off on the apr rate with someone with fair credit. I am sorry to say. That amount is for poor credit. I lucked out with a credit score as low as 560 and i fell into a program that assisted people with poor credit with a decent rate. now i am borderline good credit with the help with skybluecredit. and start up a credit union account. Some rates as low as 2%, well atleast  by me they are. My advice is to focus improving your score and within the first year of ontime payments and good credit  score you will have pre approved refiance letters in the mail. like they were creditcards.

Reply by
rhettad14

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Helpful to 0 out of 2 people

I had a 550 when I bought my brand new car and got an interest rate of 7%

You got royally screwed.

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Helpful to 12 out of 15 people

OMG 24.99%!
Go to your Bank or Credit Union if you have one, if not Get in with a Local or National one and see about refinancing with them. I would not worry about the Hard inquires, just get that rate down.

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Wait

Helpful to 8 out of 8 people

I would wait 6-12 months.  You should show good payment history before trying to refinance.  Then I would suggest going to a credit union.

Reply by
nadeenha

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Helpful to 6 out of 7 people

I was silly enough to use the RECOMMENDATIONS from Credit Karma, which is just their advertisers.  If you can pay your loan, Keep it!  Inquires are a negative ding on your credit,  and will not be fooled again.

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Hmmm

Helpful to 3 out of 4 people

Within months after Chapter 7 BK, I got an auto loan at 10.5% so I am shocked to see almost 25%. I would make 6 payments on it than just shop it online. You will definitely get a better rate as long as you have no other lates in the last 6 months.

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Should I wait or refinance now?

I just purchased a 2013 Nissan Altima 4 months ago... My car only has 18k miles on it. but my interest rate is 20.82% and payments $498. I would like to refinance it for a lower interest rate and payments. How soon would you recomend that I try to refinance it? Now, 6 months or in 12 months?

Reply by
luvlucero18

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If your credit score has improved significantly from the time of purchase, refinance NOW! Otherwise work on your credit and repair/dispute negative or inaccuarte things on it. Aim to have a 630 FICO and you can qualify for rates as low as 5.99% through your local credit union. 

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Ingot screwed too

Bought a kia 2016 new Credit score 674, told i would get 2-3% interest when I showed up they said it's no problem when all was said and done I got 8% interest what's crazy is their website calculator estimated 5.6% and I ended up with a high payment and owe more than what the car is worth. I'm paying 36k for a 21k car how the hell did that happen, was told of I paid for the life of the loan all fees and extras would bring me to 29k. Be careful at kia dealerships

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