My bad credit has me trapped in an auto loan help??

My score is 480 yes oucH I ****** up in college and well it has actually gone up since I've been paying **** off etC and I got an auto loan for 18000 for a car worth 13000 maybe I'm dumb but it costs that much because my interest rate is out of this worlD. So it turns out the car is not even worth 13000 more like 10K and now I'm stuck with it. Ill probably keep it for 7 - 9 months to build up mycredit, do u think ill be able to refinance after that time, what do I do if I want to trade the car in and get a better one. I feel trapped because my credit is so bad

My bad credit has me trapped in an auto loan help??

Auto finance is what I do for a living and you will need to make at least 12 payments on time to be able to refinance with most major banks.

The real problem your going to run into is the negative equity, if it's worth 10-K now and you owe 18-K even after a year of making payments your still going to owe around 17-K and it will be worth 8-K so you will need to buy something that can carry the 9-K worth of negative equity.

Your best bet would be to pay more then your monthly payment and pay off this loan early and then trade it in.

Your credit will be a lot better by then also.

My bad credit has me trapped in an auto loan help??

consult a financial specialist

My bad credit has me trapped in an auto loan help??

You need to pay on time for at least a year.

My bad credit has me trapped in an auto loan help??

I've been down the same road. Your best bet is to start paying off more than your minimum payment each month. After 6 or 12 months of solid payment history, many creditors will allow you to refinance for a lower rate (not all, but some).

Get the loan paid off - going from loan to loan doesn't help your credit.

My bad credit has me trapped in an auto loan help??

I had the same problem, 5 years, painful MONTHLY payments, car was banged up but at least it was reliable.

Finish paying off the car loan and keep the car

this lesson will teach you Leasing is better for 3-4 years

Cars are not worth the MSRP, buy a used %26quot;certified%26quot; car.

Keep cars for 5-10 years.

As long as you pay on time your credit will not be affected!

If you buy a new car and trade this one inthey WILL ADD the cost onto the new car loan and now youll pay for TWO cars

My bad credit has me trapped in an auto loan help??

If you have been paying it ON TIME since you got it, your best bet right now would be to go to a credit union, and see if they will refinance you. Preferably one that you belong to... They offer the best rates, expecially if you have a history with them. If that is not possible, the best thing you can do is to just pay as much as you can on the car, and try to get that amount down. Contact your lender and find out if it is possible to make extra principle only payments. So, lets say your payment is $278, pay $300 every month and tell your lender that you want it taken off from your principal.

Another option is to go to a dealership and try to purchase a new vehicle. With new vehicles, the rebates are generally really high (look for something over $1000), and they can help to eat up that inequity that you have on your trade. The only problem would be to obtain financing... When you go to a bigger dealership, they have multiple lenders they can send your application to, so you have a better chance.

I would definitely try the credit union thing first. Also, depending on who are you currently financed with, you might contact them to talk to them about lowering your rate. You say your rate is ridiculous, so I am assuming it is over 15%. The max. here in Maine is 17.99.

If you have been paying good on the car since you got it, your current lender might consider lowering your rate and refinancing you.

Just don't shop around too too much, and be very cautious about who you give your social to. While an inquiry on your credit report wont instantly affect your score, multiple inquiries will make lenders question your worthiness.

Hope this helps!!

Note: buying a new vehicle will only %26quot;dig your hole deeper%26quot; if you dont get a good deal. While new vehicle decrease significantly in value when you drive them off the lot, they can be a very equitable purchase. Do your homework and do lots of reserach before any purchase!!

My bad credit has me trapped in an auto loan help??

Yeah. I hear you. It happened to me too.

Well, it doesn't sound like you can afford your car right now.

Talk to the people who loaned you the money.

You need to sell the car for whatever you can get, pay what you can for the loan and get a cheap junker to drive for a year.

Ok, hear me out.

You car payments go way down. Your insurance goes to practically nothing. You pay the difference on the car you sold in a year.

Keep a spiral notebook. Write all of your debts by month.

Write your balance. write your payment amount. write your due date. write the interest rate. write the total and your total income

every month. The difference is what you live on.

Keep it current every month.

Heres the benefit. You can see when a bill is going to be paid

off. When it is use that payment money on the bill with the highest

interest rate.

Write goals! Mine were to pay off the highest interest rate within a year. When it was not going to make a goal, I took a second job with all of the $$ going to the goal bill.

At the end of the year, write how much your balances went down.

When you've reached your goal, and freed up enough of your income to get that $18000 car then your credit score will have

gone up and you can get the car for a smaller interest rate.

Oh by the way, by then you'll know what your interest rate is, what the car is worth (Kelly Blue Book).

I didn't write all this for 2 points. I did it because I was in your shoes at one time and thats what a good friend made me do.

It changed my life. I'm now out of debt and it feels wonderful.

good luck to you!