So your father consigned? Are you thinking of refinancing with him on the loan again or trying to finance by yourself?

 

Do you know what your credit scores are? Are you employed right now? Do you have a way (besides mommy and daddy) to pay for your Civic on your own if you refinance into your name only? Are you a member of a credit union?

It never hurts to test the waters if you want to refinance. Ask what the total dollar amount would be that you would be paying for the loan. Don't just hop on it because they tell you they can drop the APR to 5% if they extend the life of the loan to like 100 months or something because though your payment per month would be less, the total amount of money you pay for your Civic will be greater than a higher rate over a shorter period of time.

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Like Dwils said, do you have a job? Look, 10% is awful, go start your own account at a CREDIT UNION. Since you have been making payments for a year now, you have a year of credit history. If you have an account at a credit union, they are more willing to work with you because you are a member.

Find out what the pay-off amount is on your car wherever you have it financed at right now. Go to the credit union you have just set up an account at and talk to a loan officer. Tell them you owe X amount to wherever you have it financed at right now. Ask them if they can refinance the car there. If you need a cosigner then you probably cant do it since your dad's is that bad. Honestly with having cosigned on 4 cars and to get a interest rate at 10% his credit cant be very good either.
I have more than 50K out in student loans that I'm paying on, a credit card, cosigned to about 60K in student loans for both my sisters, and I just traded in my 2012 LX that I had 1.9% on and bought a SI at 1.9%. You need to get out and do this on your own.

If the credit union tells you that you need a cosigner, ask them what you can do to build your credit up so that you don't need one to refinance. Building credit is tough, but screwing up your good credit is easy. Ask them if you have them set up automatic withdrawal for your car loan if that would help. I did that for a loan 5 years ago. I got a 1000 dollar loan to buy a dirtbike, and they did auto withdrawal on me and it got me a lower interest rate.

They might tell you to continue to pay on your car for another year so you can establish more history. In that time, you can get a SMALL credit card. Something to the tune of a 500 dollar limit, again with your credit union. Use that just for gas, and pay it off every month. Take the money you would spend on gas, put it to the side, use the credit card and at the end of the month pay off the balance with the money you set aside. That will do wonders to your credit. Just as the loan officer at the credit union, they will give you all sorts of little tricks and things you can do.

You can also save up some more cash and when you do the refinance you can pay a cash down payment again and get your loan balance lower, that would help to lower your risk. The credit unions and other banks when they look at you to give you a loan they look at your job history. How long you have had your current job, where you worked previously and for how long. How long you have been at your current residence. Your credit score will tell them what kind of risk you are, are you low risk to where you always pay your loans, or high risk where its tough to get money from you. Then they look at what the loan amount is. They might be more willing to work with you if you have cash upfront and can help lower the loan amount.

Good thing your trying to do this, getting out of your parents pockets is the greatest feeling in the world.

 

You should wait until you have a good credit of your own. When you buy your new SI, you will get 0.9% interest. If you are really in a hurry, you still should wait for your dad's other loans to be paid off first. That way, he can get 0.9% interest rate.

 

I second this, to an extent. I would certainly wait until the other vehicles are paid off, UNLESS you can get your own loan. As the posters above said, if your credit isn't that good you won't be eligible. 3.5 years again I couldn't get a car loan for $10,000, and I was making payments to my parents every month. Now with my new EX, I'm the only person on a $20,000 loan with .9% interest rate. The 10% rate doesn't necessarily mean your father isn't good at paying his bills, etc, but his credit is probably affected by the amount he owes - 4 car loans, and more than likely a mortgage as well as one or two credit cards. Every time an inquiry is made into your credit, etc, it adversely affects it (there are stipulations, of course).

If your credit isn't yet good enough, I agree - wait it out. But in the meantime, take Bstone's advice and start building it. by at least having a revolving line of credit open, you are helping yourself. By the time the other 2 cars are paid off, you might have a good enough score to refinance by yourself, OR by then your dad could - assuming his credit goes up, which I believe it will. My personal opinion on the subject is, you already have a brand new car - why make things more complicated and messy financially to trade it in already? You're more than likely still upside down on it at this point. Everyone likes sporty, and its your car, your choice, but you MAY have to resign yourself to the fact that until your credit score is where it needs to be, you're stuck with the LX. Which isn't a bad thing at all.

Good luck!

 

Everyone above has great advise, I would do what they have recommended

 

Refinancing with a limited credit history will be tough,the lender has a back up on your case...your dad,I would suck it up and get some credit cards,a visa,a gas card and a store card. Go online and get your credit score( www.creditkarma.com). It will be an average approx.if your in the high 600 s or better,apply for a cap one credit card( www.capitol one.com). Apply for a card,if you get an instant approval,go and apply for a Walmart store card immediately after,then if you get approved,wait for them to come,then charge something small on both of them( don't go over 15 percent of card credit availability). When the bill comes pay it off and then use it for gas etc...don't do any more credit apps for 1 year( its called going into the garden) but make sure you use them and pay off.in one year you will be over 700 and refinancing/ trading up will be easier.this advise was given to me many,many years ago,and my score is well over 800 on all 3 reporting agencies and I got a sh$$ load of cards and can get anything on credit,but keep in mind,you have to pay it back,so resist going overboard.


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Refinancing with a limited credit history will be tough,the lender has a back up on your case...your dad,I would suck it up and get some credit cards,a visa,a gas card and a store card. Go online and get your credit score( www.creditkarma.com). It will be an average approx.if your in the high 600 s or better,apply for a cap one credit card( www.capitol one.com). Apply for a card,if you get an instant approval,go and apply for a Walmart store card immediately after,then if you get approved,wait for them to come,then charge something small on both of them( don't go over 15 percent of card credit availability). When the bill comes pay it off and then use it for gas etc...don't do any more credit apps for 1 year( its called going into the garden) but make sure you use them and pay off.in one year you will be over 700 and refinancing/ trading up will be easier.this advise was given to me many,many years ago,and my score is well over 800 on all 3 reporting agencies and I got a sh$$ load of cards and can get anything on credit,but keep in mind,you have to pay it back,so resist going overboard.


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That's not bad, but the problem is the amount of cards. Most people, especially young adults, cant control themselves. One, 500 Credit Card is a lot easier to maintain and manage than 3 or 4. If you can handle it then by all means go a head. The problem with store cards and gas cards from shell or chevron is the interest rate, like 15% or more. At least with a credit union card the rate is much lower. The other problem is with these young kids, to many see dollar signs, like oh that's 300 bucks, I only have 200 in my checking account and payday isn't until next week, I want it now, swipe the credit card and then it just spirals out of control.

One card with a low amount, helps prevent unnecessary spending.

But if you have the self-control to have a credit card and still live with it your means and stay on top of it enough to pay it off each month then yeah go for it. You just don't want to dig yourself into a hole that you'll never get out of. Racking up credit cards is wicked easy, paying them back down when you don't have the funds is a whole 'nother story.

 

The trick to credit cards is to make believe it is a bank card. Don't spend any more than you have, and then pay it off next month, and then start over. Tough to do, I know.

Back in the day before bank cards, a credit card allowed you to walk around without a ton of cash in your pocket, and if you were smart, you didn't spend more than you had.

 

thanks for all the comments and helps!

Currently, my car is under my dad's name. And he has been paying the payments with his bank account for like 3 months and then changed the payment to my chase bank debit card. I work at starbucks right now.. been working for 7 months. The only card i have is chase debit card and i have no credit at the moment i think..

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OoooK. I totally missed this post. I thought you co-signed with your dad. I now see you have no credit and limited work history. Sorry bud but you aren't going to get a car loan today.

So here is my revise advice...lol:

Find a local Credit Union that offers Savings or CD secure loans and get one. How does it work? You take in about $500 to $1000 cash. They will deposit into a Savings or CD and structure a loan against that money. In doing the loan they will disburse an equal amount so if needed, you'll be able to walk out with the same amount of money you came in with.

How does it help/build credit? When a loan is created the account is reported to the credit reporting agencies as debt. As you pay back the loan, usually on a monthly schedule, the loan and status continue to be reported monthly until the loan is paid back in full. This creates a credit file for you along with a credit score. From there is just a matter of building on that credit. I have found this to be the easiest and most effective way to build or rebuild credit.

Regarding the car loan, after 7 payments go back to that same Credit Union and apply for the car loan. If you stay at Starbucks - work history 12+ months - they will likely approve you. Good luck.







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My financial advisor told me years ago to never let a cc sit at zero for more than 4-5 months,if you have several cards with zero balance and no use in long periods of time it won't show too much history,some experts say 2-5 percent usage will hit your score the highest and help you.i got most of my credit when I made over six figures for years,now I make less,my available credit is rediculas, I try to use a card within a 4 month period for the bills,pay it off etc... I do have some store cards with 24 mos sac that have balances and 12 months sac,but that don't count I always pay them off a month early,it's like spending others money.but as far as Amex,Mc,visa and discover the most ill go is 3 months if its a bigger purchase,most have low interest,my dad was a credit expert,when I was 18 he had mine at a super high number,but honestly I didn't use it,I was too immature,so when I turned 21 I started to understand how important it was and began my journey.i tell all young people the same thing,if you can't handle it,don't do it!


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My financial advisor told me years ago to never let a cc sit at zero for more than 4-5 months,if you have several cards with zero balance and no use in long periods of time it won't show too much history,some experts say 2-5 percent usage will hit your score the highest and help you.i got most of my credit when I made over six figures for years,now I make less,my available credit is rediculas, I try to use a card within a 4 month period for the bills,pay it off etc... I do have some store cards with 24 mos sac that have balances and 12 months sac,but that don't count I always pay them off a month early,it's like spending others money.but as far as Amex,Mc,visa and discover the most ill go is 3 months if its a bigger purchase,most have low interest,my dad was a credit expert,when I was 18 he had mine at a super high number,but honestly I didn't use it,I was too immature,so when I turned 21 I started to understand how important it was and began my journey.i tell all young people the same thing,if you can't handle it,don't do it!


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I wish I would have known all of this when I got my credit card. I was 19
and thought, "no big deal, I can be responsible". I only have one, but it's maxed out. My credit score is over 700, so I'm doing well there, but what I wouldn't give to have my card at zero. I'm going to try and siphon as much of my paycheck as possible into it and have it paid off ASAP.

 

For large purchases, many stores offer 0% interest for X number of months if you open or use their credit card. You still need discipline to not overspend, but at least there is no interest if you pay it off in time.

Some stores are tricky in that if you miss the interest free payoff even by a few dollars, they hit you up for all the interest for the whole time of the financed purchase. Pay it off on time!

 

Lending is my expertise; in particular, auto loans...my bread and butter. Without going into the fine details of credit - I'm a certified credit counselor as well - my suggestion to you is to look at what auto loan rates are being offered by a few local Credit Unions, choose one and go apply with a representative at the branch. I don't suggest applying online. Once they run your credit and analyze it, they'll let you know where you stand. Regarding rates, just about all Credit Unions have rates much lower than 10% even if your credit score is in the low 600s.

It appears you've made 12 payments on your current loan so it is the perfect time to seek refinance. Good luck! Hit me up if you need info or advice.


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