Personal Loan or Refinancing ??????

[Richard1234]

I was wondering, which out of these 2 are better - to pay off the remaining balance of a AUTO LOAN. Which is $7,000.

is the APR for a PERSONAL LOAN lesser or more than REFINANCING ?????

Any help or advice thanks!!!!!!!! by the way I have good credit now and my current APR for the loan is 19, which when i've financed the car about 2yrs ago I had a decent credit but now 2 years later my credit score has gone up.....

[rapidanian]

If I am understanding your question, you want to pay off your high APR auto loan with either a refinance or a personal loan? Usually you get a better rate on a secure loan. Is your auto worth at least $7000? Its kind of hard to get a refi on an upside down loan. If you get a personal loan, get it through a bank not a finance company...

[fixfico]

what do you define as "good credit"? Your APR will most likely be based on your credit score, so make sure you check it before refinancing. You may have to do a personal loan if you are upside down. Most lenders will only finance your car up to a certain percentage over its value. need more details to help you out..

whats your credit score?
what is your car worth (kbb) ?

I know one thing, 19% is WAY too much!

-eric
www.fixfico.com

[Richard1234]

my score is 680
my remaining balance to pay off the car is 7,000

when I've financed the car 2 years ago - my credit score wasn't that good less than 550 = 19 APR

but now 2 yrs later my credit score has improved.........

so what should you suggest - PERSONAL or REFINANCING?

thanks

[rapidanian]

Shop it and take the best deal! Your score is good, but we still cannot tell you which way to go because there are some variables missing. At this point it is your job to make some calls/visits to your bank or credit union. Congrats on building your credit back up.

[jrmoro]

I first want to commend you on raising your credit score. If you use the rule of 72 which means that if you take the Annual Percentage Rate of 19 percent and divide that into the number 72, it will show you how long it will take to double the amount you borrowed. So if you started you loan with borrowing $12,000, you would have paid back $24,000 in payments in a short 3.79 years. I don’t know about you, but that number scares me big time! Do whatever it takes to get away from that 19 percent APR as soon as you can. In most cases you will be better off approaching your local bank or credit union that you are currently doing your checking or savings with, to get the best solution that will work for you. Good Luck! J.R. :) http://www.creditpowerplus.com/

[FICOdemon]

One consideration should be if you will still want full coverage insurance.

If you are a safe driver and willing to take the risks, the extra interest point or two for a personal loan might less than the difference insurance premiums.