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mactube

From 10,5 % to 2.99 %

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I was able to finance my 2. car for 2.99 % with DCU  after I sold my car that I had financed with Capital One for 5,5 % and was able to pay of my credit cards which helped me alot with boosting my score. 

 

Since my credit score went up to 750 It was real easy to finance with DCU .. instant approval ... all online ... after I chose a car and send them the Purchase agreement, they overnighted the check to me. 

.. and the best, all with a super low 2.99 % APR ( not an all time low, because I remember them advertising a 1.99 % APR before but I'm still very happy especially since the car is used, and they gave me an option to add

a 0 deductible powertrain warranty for  just 30 bucks a month. 

 

I'm debating if I should refinance my 10,5 % Auto loan ( which I have with Alley)  also with DCU, but then I don't know if this would be negative on my credit score since this loan is an ongoing loan with around 2 years of payment history !? 

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Don't perpetuate high-interest debt for short-term score impact without an overwhelming reason.

 

As importantly, CONGRATS.  The benefits of great credit will continue to cascade to other parts of your life!!

Edited by cv91915

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@cv91915 wow ist the your score in your signature !? Respect !!

 

What exactly or maybe in an example do you mean by   " Don't perpetuate high-interest debt for short-term score impact without an overwhelming reason. "

 

you seam to now what you are taking about...  on that note: Do you thing adding my girl friend to the auto loan will help here score ? ( If thats even possible with an ongoing loan ( kind of like a co-signer ... similar to a credit card) 

 

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I'm saying that you should refinance and save money on interest and not worry about any minor short-term score hit...  

 

An exception might be if you're in the middle of getting a mortgage and your scores are right on the edge of qualifying (or not) for the best terms, in which case I'd say wait and refinance the car after you close on the mortgage.

 

Other than that, it's time for you to take charge and leverage your great credit for the financial gains you earned.

 

You can't add someone to a car loan.

 

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I am not sure if the still do this, but on my last loan with DCU, after 6 months of on time payments, they lowered the rate by .25%.   They did this each 6 months for the first 2 years.    If you end up being late on a payment (even by 1 day), they said the rate would go back to the contract rate, and you would not be eligible for rate reductions again on that loan. 

 

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Unless you plan to refi for only the term that remained on the current note, then you may do just as well to shovel money at the existing note.  Nothing says you can only pay the monthly amount.  Plenty of people pay down car loans (and other notes) early by adding additional funds towards the principal. 

 

The existing loan will continue to report for roughly a decade provided the lender continued to report the data.  Nothing obligates them to report their history with you.  The only requirement upon them is to report accurately IF they elect to report the loan performance. 

 

And no, you cannot retroactively add a borrower to the note.  That requires a new contract.  And it is RARELY wise to put a boyfriend or a girlfriend on the title of ANYTHING.  If you thought divorces were messy, you ain't seen nothing until you go to sell a vehicle that is titled in two names, one of which you have no contact with and have not seen for many years...

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Ok, so actually this is the reason I'm holding off with refinancing the car... I'm currently renting my Chevy Camaro out on a Ride Share Platform ( maybe not the nicest idea of owning your dream car, but it's a way to make the are pay for itself  and  drive your dream car for free 😉 ... since this looks like it's going well ..(just rented the car out for a week for my first car note)

I'm probably scaling this "Business" up a little bit and will probably buy another car soon. (If somebody is interested how it works feel free to contact me or I will share it here .. if possible) 

 

So if I refinance the first car ( with the 10.5% APR), it will probably "look like" / have the same impact that a brand new loan, and could make it less likely to be able to get a 3rd auto loan. 

 

And ... thank you @hit man for the info about adding a person to an auto loan, but the on-time payment for close to 2 years will defiantly make an impact on my score.

I'm not sure if in case of a refinance of that loan those on-time payments ( of a then payed off loan ) will still have a positive impact on my score) 

 

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11 hours ago, mactube said:

Ok, so actually this is the reason I'm holding off with refinancing the car... I'm currently renting my Chevy Camaro out on a Ride Share Platform ( maybe not the nicest idea of owning your dream car, but it's a way to make the are pay for itself  and  drive your dream car for free 😉 ... since this looks like it's going well ..(just rented the car out for a week for my first car note)

I'm probably scaling this "Business" up a little bit and will probably buy another car soon. (If somebody is interested how it works feel free to contact me or I will share it here .. if possible) 

 

So if I refinance the first car ( with the 10.5% APR), it will probably "look like" / have the same impact that a brand new loan, and could make it less likely to be able to get a 3rd auto loan. 

 

And ... thank you @hit man for the info about adding a person to an auto loan, but the on-time payment for close to 2 years will defiantly make an impact on my score.

I'm not sure if in case of a refinance of that loan those on-time payments ( of a then payed off loan ) will still have a positive impact on my score) 

 

You're going to keep getting car loans until your DTI can no longer withstand the new debt.

 

The existing loan and its positive payment history should stay on your reports for 10 years after you refi.

 

Don't shovel money out the door in the form of extra interest for a minor temporary score impact that won't matter anyway.

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If you mean you are putting it out there on Turo or a similar platform, then you need to look closely at not only your insurance coverage but ALSO the terms of your note.  Such services are often NOT permitted or covered by the terms of insurance or the loan...

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