I’m 30. Had nothing but unpaid medical bills on my credit and had bought all of my vehicles used in cash. I bought my first car through a dealership last year (2016 Jeep Compass, 41,000 miles) for about 16,500. Only interest rate I could get at the time was 15.6%. I pay 382 a month for the car. I have never missed a payment and got a credit card since that I pay on time every month as well. I had virtually no positive credit before this and it’s still rough, at 634. Fico auto is better but still under 700. I make 80-90k a year depending on performance. I’d like to refinance and get out from under the interest. Im in San Diego CA.
1. Im ignorant, so forgive me if this is assumed, but my lender won’t refinance the loan, I will need to go elsewhere. Any advice on what to/not to do? I’m thinking credit union?
2. Should I just look to sell/trade in the car I’m paying off and start from scratch with a new loan on a vehicle I might enjoy more? Is there a downside to this?
3. Would selling and leasing make sense in the current market?
How old are the medical bills? Have you tried to dispute them in hopes that they get deleted?
I recommend this process: https://whychat.me/GUIDE%20HIPAA%20PROGRAM.html
Also what is the *reported* balance on your credit card? Doesn’t matter that you pay in full most banks only report your statement balance once a month. For the best possible scores keep reported balance below 10%
With the car market being what it is, are you upside down on the car yet? If you don’t owe more than it’s worth, sell it asap. You never should have entered into a loan with a rate as high as you did. Get something MUCH cheaper that you can afford. Also, credit cards and car loans compound interest daily, so make 2 half payments a month vs just 1 payment at your due date, you’ll pay it off faster and with less interest total. Your income would go a lot farther if you lived somewhere otter than Cali, keep that in mind also.
Check out Ally Clearlane.
I recently refinanced my car through there and lowered my APR a fair amount and it’s a soft pull prequal to check your rates.
You seem I have a decent income and things under control. I think the smartest thing you could do is pinch some pennys and get that loan paid off ASAP. You are already a year in and the best way to increase your credit score is with a history of making payments.
Remember that interest is only half of the equation. Time is the other half and if you were to pay, say double you current payment, you cut this loan time in half it would be the same as refinancing at 7.8%.
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