I applied yesterday for a new apartment, so obviously my credit will be checked, among other equipment. My mom co-signed for a new car for me about a year ago and I am now plot to refinance my car loan in just my name. Am I going to have a hard time getting the loan being that I just had my credit checked for a new place? I have about 2.5 years credit history with a honestly mean credit score.
Try it and see. It will be the only way you will know.
only diificult if you have terrible credit.
why don’t you keep the car in your mom’s name for awhile til you get “settled” then batter so it’s not doing so much at one time?
good luck!
Just one credit check for your new apartment shouldn’t negatively impression you much. What will have a larger impression is your overall debts and rent as a percentage of your income, as well as your work history and payment history.
Also vital will be the value of the car as compared to the amount of the loan that you expect to get. If you got a excellent deal on a used car, then getting an equivalent loan will be doable. If it was a new car with a long loan and the car has depreciated quite a bit (as groundbreaking new cars do), then it may well be valued less than the outstanding loan.
It really depends on how much the refinance is for. If your credit score is mean which is in the 600′s this is what it will largely depend on. If you have a bank you have done business with a particular bank for a long time they force be more willing to work with you. If you haven’t then you will likey have your score checked by a computer. If your credit score falls into a range that is ok with the amount you want to refinance for you will be able too. Again it largely depends on the amount left on the car. If you are in the mean range it force be hard if there is more than 5000$ left on the car. Hope that helps a small, best of luck!
First of all, one credit check, or inquiry, won’t be that terrible. 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 reckon 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 alert 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 ancient 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 equipment are extra money that are more than the value of your car, so the car force 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 place 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 place 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 equipment reflected in your score anyways, so if your score is “mean” than you have sufficient history. It’s different than having no score, because lenders have no thought 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 excellent credit, and you will get reasonable interest rates. 650-689 would be mean, and you will have to pay a bit more interest, but still favorable. 600-649 is honest, 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 not more than 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.
If you reckon that you are paying a higher repayment amount for your existing car loanyour monthly costs. Secondly, you may aim a competitive interest rate. Thirdly, you could be getting a flexible repayment period. Overall, you will be managing your loan a lot better.
If you’re paying on time why refi the car? That’s like throwing 12 payments right out the window. Not only are you building your credit, you’re also helping your mom with her credit. If you want to reduce the years left on the loan, you can always make more than the month payment.
if these are the only two inquiries on your credit report than I don’t reckon that it have much if any negitive impression on your score but realize this banks don’t’ look at a score they look at your payment history and length of time excellent standing accounts have been open, I don’t reckon that you will have much problems if you refinace that the same place that you currently have the loan if you have been on time and building the current payments. Best of Luck
You’ll want to check these guys out….99% approval they say.
Take care.