auto

Better credit, same lousy car loan rate?

Tara Baukus MelloQuestionDear Driving for Dollars,
Thanks to long-ago poor credit, I'm two years into a five-year car loan at 15 percent. I've never been late on a payment and my credit score has improved a lot, yet I can't get them to refinance me. Is there any way I can get a refi to a better rate?
-- SjB

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AnswerDear SjB,
First, start by confirming that your credit has indeed improved by reviewing your credit reports from all three agencies, and obtain your credit score from at least one of them.

While you are doing that, it would be wise to look for ways you can further improve your credit. For tips, read the Bankrate feature, "Fix your credit before seeking a car loan." Then call your current lender and ask about refinancing options. Shop around at other lenders, too. You are at a good point to do this because most refinanced car loans are for 36 or 48 months, so you wouldn't be substantially extending the life of your car loan. Even if you've done all of these steps already or if you get rejected this time, keep trying. The current trend with lenders is a loosening of credit, so if you can't get a good car refinancing deal right now, you may get one in a few months.

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If you have a car question, email it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.
 

Bankrate's content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate's Terms of Use.

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