How do you refinance a vehicle with fair credit?

Babydoll asked:


My interest rate on my car is too high. I need to get it lowered to lower my payments. I am paying 400 a month for 5 years on a 16000 dollar vehicle. Help Please!

Kristen

Tags: Dollar, Interest Rate, Refinance

This entry was posted on Friday, May 22nd, 2009 at 3:05 pm and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “How do you refinance a vehicle with fair credit?”

1. Steelegrave Says:
   May 22nd, 2009 at 5:52 pm

   Keith

   Plenty of ways. The only caveat is you have to be in a “simple interest loan”. Contact your personal bank to find out what they will loan you money for if that rate is attractive, use their new loan to payoff the existing one. You can determine your payoff by calling the current lender or perhaps if you have access online. If your own bank isn’t better, try capital one online and see what they will give you.

   However, most people don’t understand the true nature of finance charges on a small loan. 1 point of interest on a $16k loan equals about $9/month on a standard 60 month loan. So if you can find a rate 2 points lower than you have now that will save you in the neighborhood of $18/month.

   Don’t know when you started this loan but you also need to understand that interest rates have risen significantly in the last 18 months. If your loan started before that, I would be suprised if you could find a lower rate.

2. KarGuy Says:
   May 25th, 2009 at 8:52 am

   Joan

   Payments are based on your credit file. Sometimes there are things in there that are NOT always accurate. Take the time to review your credit report with the bank or credit union. Sometimes it takes little time to restore your challenges..late payments, paid late, didn’t pay at all, and of course “That’s not me, I didn’t charge that!!” Then….prove it! Credit counselors can also help..and it’s FREE