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nursebeth7807

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When should I refinance my car?
I purchased my car in October 2011 with a 565 credit score. My interest rate is 15.9%. I recently paid off my credit cards, and now my credit score is showing as 605. My question is: should I attempt to refinance my car now, or should I wait until I get past the 620 mark on my credit score? Is there a set amount of time (i.e. 6 months, 12 months) that I should wait before attempting to refinance?
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February 24, 2012 Reply

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There is no set amount of time, I don't think that matters unless you think your credit score is going to rise more. If you read other info on this site about raising your score you will see it is better to have around 20% balances on your credit card limits to show you are responsibly still making monthly payments, even if the payments are small (instead of paying them all off). And never close those accounts as that will hurt your score. In your situation i would do this to raise your score, for say 2-4 months at least, then refi the car. That is a very high interest rate for a car loan these days, shop around-credit unions are supposed to be the best rates.

pfinleyz's response was:    

 
Feb 28, 2012 Reply
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. 

recoveringscore's response was:    

 
Mar 09, 2012 Reply
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I have the same problem what I want to know is does it look bad on my credit to refinance often? as my score increases? 

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Mar 09, 2012 Reply
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