Overhaulin'

Can I refinance a car loan from my moms name to mine?

This time last year I got a car, but because I had no credit score the loan was put into my mother's name. She doesn't have the best credit so we got an APR of around 12% for 7 years. I checked my credit score at one of those free sites a few months ago and it said mine was 709. Is it possible to refinance the car into my name and get a lower APR?

Public Comments

1. i think you should be able to get the loan but at what rate it is hard to say because the banks are raking the public over the coals to make all the money that they can get
2. Sure, but you have to convince the bank that you're creditworthy yourself, same as if you were buying a car from scratch.
3. Credit score is important but income and debt to income ratio are important as well. If you have the income, you should go to your bank or credit union and apply for financing. The cars current value will also play a role in getting financing approved. You don't know till you try and it would be worth it if you can get that rate down. Good luck.
4. You have absolutely nothing to lose by applying for a car loan. If you have a few bucks, look into opening an account with a credit union instead of a bank. You will get a much better interest rate. There are many local credit unions that you may be eligible to join... ask your employer, neighbors, family members, friends, etc. for recommendations. Credit Unions offer more personalized attention than banks. Another suggestion is to check out Capital One who also offers car loans. You have nothing to lose... except 12% interest. Even if you get a loan and your payments are lowered, continue to make the same payments (or more) to the new loan and you'll pay it off even faster. Make sure to apply for all loans at one time rather than stretching out the applications over time. The more inquiries you have, the more it dings your credit score. If you get denied, wait another year (at least 6 months) before you continue to lower your score with applications for credit all over town. Also consider getting a secured credit card to build your own score but don't overdo it with collecting credit cards... just ONE is all you need.