Before applying for any loan you should always make sure you know your credit rating and are aware of the state of your current credit report. You are entitled to one free credit report per year. You can also get details of your credit score for a nominal fee.
So you bought a new car last year and got credit for 5 years at 8.9% interest. It isn't that low is it? You can say that again, but at the time of your purchase your credit score was quite bad. But that was a year ago. You ran your credit report today and found out both your credit score and rating are now much higher. In fact they are now excellent. So having obtained such a good rating isn't now the time to refinance? Why keep paying a loan with a high rate of interest when you can refinance and get a loan with a much lower rate of interest?
Before applying for a loan for the first time or when you are refinancing you should review your credit report. You can normally get a cheaper loan with a better credit score and rating. Review your credit report and search for any issues. If there are issues try to remedy them. Once you are taken the appropriate steps to improve your credit rating and score then check that they have worked by review your report again.
It is still possible to get credit even if you have been made bankrupt but timing is important. Once you have been discharged from bankruptcy get a copy of your credit report to check your bankruptcy has been properly discharged. You then need to wait for six months because you will not get a loan during this period. You should be careful not to apply for a loan during this period because it will probably be turned down and this fact could be noted on your credit report. You may also want to put a letter with your credit report to explain the circumstances of your bankruptcy which can improve your chances of getting finance. Finally, ensure your accounts are up to date and accurate.
If you are declined credit you should get a copy of your credit report. It may be the case that your report contains entries that are not accurate. It is possible to improve your credit rating by getting these inaccuracies removed from your report.
One of the problems with shopping around for credit is that multiple inquiries as to your credit score may actually reduce your credit rating. Getting quotes online may help because lenders will estimate rates and fees without looking at your credit report. You can then focus on the lenders who provided the best estimates and only now will they look at your credit report.
