How soon after purchasing a car can I apply for refinancing?
Filed Under (Buying & Selling) by admin on 26-12-2009
RIKA FURY asked:
I have bad credit and I just bought an almost new car (It only had 4,000 miles on it) at 15% APR. How soon can I apply for refinancing with another finance company? Do I have to wait a year?
I have bad credit and I just bought an almost new car (It only had 4,000 miles on it) at 15% APR. How soon can I apply for refinancing with another finance company? Do I have to wait a year?
It’s different for each bank… you will have to just check around and see if someone will refinance it for you.
15% APR wholy crap!!! you should not have done that. wow
OMG 15%!? Wow! Anyway, apply now. It depends on each bank’s policies, but most will only finance a vehicle that is 5 years or YOUNGER. And there are many things that go into consideration, such as: your credit, your income & liabilities, and the vehicle itself: age, condition, features. Good luck, and I hope that you will be able to get a MUCH lower interest rate.
Biting the bullet at high APR’s is sometimes necessary to repair bad credit. Your best bet would be to make good, on time, monthly payments for about 8-12 months. This will give your credit time to rebuild so that when you refinance you can get the best rate possible. During the 8-12 months try to pay any back debts or delinquent bills that you may have. Try to keep good revolving credit (like a credit card that you pay off every month) going during this time as well. By doing this I have seen credit scores go from Mid 500’s to Mid 700’s which will qualify you for 0% – 6% APR. Good Luck.
It’s different from each bank.But I think it’s about 6 months