Question
Auto Loan Refinancing?
I am looking to buy a new car with my wife co-signing. My credit is horrible and won't be able to get a loan without her help. The questions are: Will a year or two of paying the car loan payments with no missed or late payments plus keeping all other credit payments on time build my credit enough(generally speaking) to eventually re-finance the car in my own name a year or two down the road. Also, does this sound like something that can happen or does happen a lot, re-financing without the co-signer a year or two down the road? What does re-financing entail, fines, etc...?
3 years ago - 3 answers
Best Answer
Chosen by Asker
Start by talking to a local credit union or two about getting your initial loan, and how they might let you take it over by yourself in two years. This is the kind of stuff credit unions are good at, and they can assist you over the two years in cleaning up your credit report etc... Not like the dealership's finance companies, who will not let you refinance in two years (not with them, anyway). And they'd charge you double what a credit union would. Only take dealership financing with bad credit if a credit union has already declined you. You can go get pre-approved for X amount, then go shop for the car you really want. Best part is, you can then pound down the price of the car, letting the dealer think he can get some more money back from financing it. Then you tell him you'll bring a check in the morning for the car, at the lowest price you could get him to. Don't tell him you have financing until you set the price of the car. Just say we'll get to that part.
3 years ago
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Other Answers
yes it can happen that's what I did with my first car my dad cosigned it was a 36 month loan by the 20th or 21st month I refinanced and it was just in my name, re financing means that you are paying more for the car than it's worth you'll probably pay for it twice but you should refinance and pay it off after a year that way it looks good on your credit and you don't pay a lot in finance charges. Good luck ps you may even get some extra money out of it
by OnTheProwl007- 3 years ago
I do mortgage loans and I've helped my buyers improve their credit score first by optioning out. This website is free and it makes you appear as less of a credit risk: www ... Do the opt out electronically for 5 years, I've seen it help. Pay off any recent collection (if you can afford a small one). Wait about 30 to 45 days... this does help. Dispute any incorrect information online at either - Equifax, TransUnion or Experian (they all have websites depending on which one is reporting your information).
by Bubbles- 3 years ago