Jim Jackson
 |
First of all, one credit check, or inquiry, won't be that bad. Lenders just dont like seeing too many inquiries at one time because they feel you're either desparate for money and are seeking anything you can get, or they think you may be trying to over-extend yourself financialy. Either case, you would be considered a higher risk. But only 1 inquiry won't hurt. Also, they seem to not matter as much after 6 months, because it shows that you are being cautious with your credit. Even more, inquiries disappear off your record after two years.
As far as your refinance, its tough to say. When the loan was in both your mom's name as well as your own, they were considering both of your incomes. Therefore, your combined income greatly exceeded the amount of debt you guys had. Now, not only will only 1 income be considered, but you will be taking on more debt in the form of rent, utilities, etc. Ofcourse, I don't know how much you make for income, so how much this affects you will vary. Also, lenders want to make sure the value of your car is within the range of the amount you're looking to borrow. Note that a refinance closes the old account and opens a new one. Did you add on sales tax to your loan when you bought your car? Any dealer add ons? These things are extra money that are more than the value of your car, so the car might not be worth as much as the amount owed. Then again, you may have made enough payments where the value of your car is worth more than the amount needed to borrow. This is all because in the event you don't make your payments, the bank wants to be assured that they can repossess your car and cover the losses by selling it.
One thing that may help, if you can, is to put a down payment down. This does alot in your favor. For one, it shows the lender you are serious about your investment if your willing to put money down up front. It also may help if you do owe more than your car's worth, as it will lower the amount needed to be borrowed and bring it closer to the car's value.
As far as your credit history, as long as you have a credit score, that won't matter. That one of the things reflected in your score anyways, so if your score is "average" than you have sufficient history. It's different than having no score, because lenders have no idea about your repayment trends, and can't predict what how you repay your debts. 2.5 years of credit history is plenty. Heck, 6 months of credit history is enough.
Lastly, before you do anything, I would find out what your scores are by going to annualcreditreport.com. By law, you are entitled to a free credit report once a year from each credit agency. This is the site to get it, though you will have to pay $5.00 for each score. If your score is above 760, you will get the best interest rates. 690-759 would be good credit, and you will get reasonable interest rates. 650-689 would be average, and you will have to pay a bit more interest, but still favorable. 600-649 is fair, but expect higher interest rates, alot of emphasis on your debt to income ratio, and you may need to provide some referances. If your score is below 600, I would suggest you establish some better credit first, because you're likely to be turned down. Some lenders will accept you all the way down to a score of 530(?) but you will pay dearly.
I hope that helps you a bit. There's so much more, but this should get you in the right direction. |
Paola
|
If you think that you are paying a higher repayment amount for your existing car loan<!--then you can bring it down. With the help of refinance car loans, you can switch the loan plan with effective loan management.
http://best-loans.awardspace.com/refinance-car-loan-bad-credit.htm
If you think your lender is charging a higher interest rate on your car loans then you can look at the refinance car loans option. With the help of a refinance car loan, you can avail multiple benefits. Firstly, you may reduce-->your monthly costs. Secondly, you may avail a competitive interest rate. Thirdly, you could be getting a flexible repayment period. Overall, you will be managing your loan a lot better. |
Homepage 
Financial
Forum 
Credit 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
