refinance my car

I just called my original finance company and checked the status of my account. It’s paid in full. The refinancing has been successfully completed, saving me a couple of thousand dollars in interest.

The loan officer called me yesterday to say I had underestimated the amount needed for pay-off of the existing loan. It’s going to be about $350 more than I thought, so he’s upped the refinancing to cover it. I will not have a payment due till February 10th, so essentially I get to skip the January payment. I’m going to use the savings to open a secured credit card account at my credit union, which will be used solely for making the monthly car payments. This way, I’ll not only be decreasing my indebtedness through refinancing, I’ll also be increasing my credit scores by establishing two new credit lines.

I spoke to a loan officer at HSBC in San Diego after I prequalified for refinancing online. He sent me a loan packet, which I need to complete and return via DHL tomorrow. Refinancing will lower my current interest rate by 5.61%, knock three months off the remaining term of the loan, and reduce my monthly payments by about $37. I should be able to save a couple of thousand dollars in interest payments. It’s not as good as I had hoped, but better than what I have now. Barring any unforeseen glitches, my car should be refinanced by the end of the month.

My credit union said come back at the end of 2007 and they can help. Their “high” rates are nearly 9% lower than what I am currently paying, but I will not qualify till late December. In the meantime, she suggested that I take up an offer from HSBC that would knock 4% off my current interest or else establish a secured VISA card with the FCU to help boost my credit score. I’ll probably do both. I’m paying way too much a month right now. I know people who pay less and drive Vettes and Jags. The US credit system sucks could be better.