Welp, I jumped to fast and ended up with an inquiry. I decided to try and refi my auto with Wells Fargo. I called and talked to a very nice lady. She basically told me that my FICO score decides what percentage they can finance me on. First background on my jeep. It is a 1997, her estimate is it is worth $9,900. However, I have $7,000 negative equity (had to get rid of a barely functioning car owing $8,000 on it). So basically I was looking at around $16,900 for finance. Well she did the application over the phone and unfortuately, since they used my Experian score (grrrr, grumble and moan) which is my lowest) they would only be able to finance 90% of what the vehicle is worth...grr. She did tell me that they finance 1996 or newer. So now, I wonder. My goal by January is to pay off my three low balance credit cards and work on getting rid of the three collections on my report. That is also the month that my other student loan is out of rehab and I can roll it into my consolidation. At the same time I was thinking about trying again for refinancing if I have at least a 620 or above score. However, would you recommend refinancing the whole amount, or just waiting and trying to save the excess money to get rid of the negative equity and then refi? I don't know if I'll be able to do that within the window of time that they will finance my car (meaning it may be too old by the time I save $6,000). My only reasoning for not refinancing the whole amount is that I will never be able to sell the jeep since it will continue to depreciate faster than me paying off the whole 17k balance. Any ideas?
That's impossible to answer without knowing the rest of your debt situation. What are your other balances and interest rates? What's the current rate on the Jeep? Knowing those things will allow someone to give you an accurate answer.
my credit card debts (with high interest rates in high teens are) crapital one $200. chadwicks $186 Brylane $380 (so that's not much to pay off by January. It's the Providian at 3.5k that's going to kick my butt.) My Jeep is at 19% interest rate, payments $440 a month, 72 month contract (yes, I was desperate and didn't know any better, can't turn back that clock). I've had it for two years. I'd actually keep the same payments if I could refi it down to less months. Now note, these are payments I can afford. I make a decent salary so the 440 a month isn't killing me at all (but of course that interest is...eh)
