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When should I refinance???

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I went ahead and dove into the new truck (previous posts debating back and forth etc).  I will sell the used truck on craigslist/hoping to come out better than the $800-$1k the dealership mentioned.


I prequalified through CapOne first, $35k at 7.85%.  Truck cost more so I ended up with 9.99% at PNC.  CapOne would not go up the few grand which I understand. My credit scores (fico 8 ) are 624 to 636 but of course different with the versions used for auto financing.  Understanding where my credit sitrep stands I was ok with the CapOne 7.85%.  


Updating my goal board as to when I should target refinancing the auto loan?  I have over 10 inquires, only 3 offers (3rd was way higher); so lesser of the weevils (Master and Commander movie reference...lol).  DCU keeps popping up in financing/refinancing successes with challenged credit in my searches.  Just looking for advice on how long to wait (3-6-12 months etc), who to try at that point, pros/cons.


I thought of trying DCU now since still within the week of purchase and hoping that INQ gets counted in with the other batch.  Any experience out there if CapOne would be interested in 5-6 months?  I believe the installment payments will give a good boost to my scores since I don't have an open installment on one credit report and the other 2 list my Santander(not due off until beginning of 2020).


CapOne I have 2 credit cards (1 unsecure, 1 secure) and have done great ontime payments, one auto CLI etc within the last 6-7 months with them.  I am keeping in mind another lesson on here of too many eggs in one basket; but I think they were better in the offerings above for the relationship of on-time payments/usage this year/rebuilding.






(hope this is not a double post as I had to log back in and resubmit)


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It would probably make sense to refinance at a point when the LTV is commensurate with the scores based on the advance guidelines of the selected lender.

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It is likely that a CU will beat CapOne's rate, all else being equal.  I would give it 6-12 months of on-time payments, preferably for more than the minimum if possible.  This will not only lower the overall interest paid but put you in a more favorable LTV position when going for the re-fi.  I am guessing you put down little to nothing on the car, which means you rolled in taxes, etc. into the new loan, and are probably over 100% LTV.  DCU allows up to 120% of LTV, however I don't know if their internal scoring system puts a higher required score for LTV's over 100% (or some other range).  Giving it some time will show a good positive history on the new loan, although it probably will not raise your score as much as you might think (installment loan have little impact on FICOs, unless they are derogatory).  Continuing to pay your CCs on time for another year will also greatly improve your score.


One last piece of advice, I don't know the term of this loan, but DO NOT fall into the trap of doing a re-fi and extending the term to lower your payment (meaning if it is 5 years, paying it for a year then doing a re-fi into a new 5 year loan).  You will be paying tons in additional interest due to the lengthening of the loan and offsetting the good of doing the refinance.  If you're in a 5 year loan now (or 6, whatever), after you pay for a year, do a re-fi with the same term as remaining on the original loan.  The payment will likely be lower due to the lower rate anyway.  Then, continue to make the same payment as you did on the original loan, as the extra will go to principal and significantly reduce the overall interest paid.

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