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Wondering About Auto Loan I Received
So I needed a new car and found something I felt I could afford.

Long story short it was a used (2012) car, and I have somewhat bad credit (678 w/ 12 inquiries within the last year due to attempting last year to get a loan for a car and credit cards/credit limit increase. I wasn't sure what I was doing at the time but I know better now). My utilization is very low, about 12% give or take. I also have "young" credit.

Anyways, I got my partner to co-borrow/co-sign with me. His credit is amazing. 750-something with around 20% utilization and much older credit. He also has relatively high income with the only debt he has being a loan for his car plus whatever trivial credit card balances he has.

We were approved for a 72-month loan (a little over 16k after tax, 20,016 with the total cost of car+loan/interest) for 5.99%. I'm just wondering if we could have done better and/or if I should consider refinancing next year when my credit goes up. It sounded really good to me considering my credit, but like I sometimes do, I rushed a little.

Payments are 278/mo which was $8 over what I set in my head as my "max" but I figure I can scrounge that up easily enough. The finance officer told me that we were approved UP TO 390/mo which tells me we looked fairly good to the creditor. Or at least, he looked good.

Just let me know what you guys think!


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I think you did pretty well. You partner probably could have gotten a better rate if he had applied alone, but 5.99 isn't bad (mine is 9.75, I think I was smoking crack that day-j/k). Unless you can get a fabulous rate next year, I'd probably stay with the current lender. You can always pay extra to the premium and pay it off earlier.

Also, I don't think your score is "bad". It's on the high end of fair and it's better than average. The inquiries on your report will only be on there 12-36 months, I can't remember which, so they're not a long term issue, and your level of utilization is great.

So in my opinion you're in a good spot. Keep your utilization and number of inquiries low and pay everything on time and you should see an improvement soon.

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