I had no choice but to finance a car loan at a pretty disgusting rate (14%) thanks to "insufficient credit history" back in the end of September. My credit score was good.

Now it's January; I've been making money, making car payments, and paying bills. I opened a second credit card and did a balance transfer to take advantage of an introductory 0% offer, leaving the first one open to add to my unused credit, and have been paying that each month as well. My credit score is now apparently 742, which is about 100 higher than I remember when I applied (but my memory is untrustworthy).

How long should I wait before attempting to refinance into a lower interest rate on my car loan? How much history will be sufficient?

1 Answer 1


Between half a year and a year should be enough to improve your interest rates drastically on car loan refinance. Make sure that your new credit card has already been reported to the agencies, and that the credit/debt ratio is lower than 30% on your revolving (credit card) accounts. That also means that you shouldn't carry too much balance, even if the APR is 0%.

  • According to a check on creditkarma today, it's on there and I'm using just under 30% total with the balance transfer and an emergency I'm having to carry. So that'll go down as I pay it off. Jan 9, 2012 at 19:13
  • Then I guess you can start shopping for a refinance in a couple of months.
    – littleadv
    Jan 9, 2012 at 19:19

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