How long should I wait to refinance my car, after getting a mortgage?

How long should I wait to refinance my car, after getting a mortgage?
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I’m looking to refinance my car to reduce my monthly payments, my interest rate is 17%. My mortgage that I revieved in April has just shown up on my credit report. I have 2 credit cards that I have only missed one payment on this last month. How long should I wait and what should I do to help the process of getting a good rate?


This is a very good question and I can understand why you are wanting to refinance the car if your interest rate is at 17%. Generally, I wouldn't say there is a certain amount of time necessary to wait for something like this after getting mortgage. I would assume if your credit score was high enough to obtain a mortgage loan, then you are probably doing well in regards to credit currently. Obtaining the mortgage may have caused the score to drop slightly initially, just because this is now being factored into your debt to income ratio as well. Also, if you have had recent missed payments on credit cards, this will bring the credit score down as well. Remember, when it comes to a credit score, there are 5 components that get factored into this, the largest component, at 35% of the score, is your payment history, or simply just paying your bills on time. Having late or missed payments will affect your credit the most. I would suggest, getting an idea of what your credit score currently is, if you do not know already. You can get a free copy of your credit reports once per year from all 3 credit bureaus from This way if you know what your score is, you can find out what you will need it to be at in order to get a better rate on the car note and go from there. I would not say there is a set amount of time that you need to wait, more as it is just dependent on how long it takes for your credit score to be good enough to get you that lower rate you are looking for. I hope this helps to give you some direction. Best of luck with everything.

Thank you


It may be worthwhile to talk to a credit union in your local area. Some credit unions look at your whole financial picture as well as the FICO score to determine if they will refinance an auto loan.
David Atkinson
Certified Credit Counselor


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