Ask Terry Questions Refinance car loan

Refinance car loan

By Terry Savage on May 30, 2015 | Credit/Debt

I’m 72 years old . I am paying 6.25 percent on a 7 year car loan. I had a bad credit rating caused by my husband who is now my ex. My credit is fine now. my home is paid for. I have 300,000. In the bank. Can I get this car refinanced? I have no income other than SS.

Terry Says:  It’s tough to get a car loan refinanced, since the value has dropped since purchase.  My suggestion:  take some of the money out of the bank and pay off the loan!  You can’t earn 6.25% in savings, so you’re fooling yourself if you keep paying interest.

AND, congratulations on being on your own. Are you sure your “credit is fine”?  Bad credit really doesn’t just go away until 7 years have passed — and you still have time to go on that 7-year loan.  (I’m good at simple math!)  Check your current credit report at www.AnnualCreditReport.com and get your credit score free at CreditKarma.com.

If your credit still needs some help,  go to www.Bankrate.com, and get a new, secured credit card — backed by a small deposit, perhaps $2500, in the  issuing bank. That will be your “line of credit” and their guarantee of payment.  Use the card every month, and pay in full –and on time — every month.  That’s the best way to start rebuilding your credit.

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