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I’m Trying to Refinance My Car Payment But I’ve Got a Lot of Late Pays. – Venkata

“Dear Steve,

I got a score of 686 in credit karma. I often made late payments for many months for my car loan as I am lost in my work. Later I automated the payments before due date. I bought Hyundai Elantra 2012 in Aug 2012.

My APR is 5.9% . I wanted to refinace the car with lower APR rate. But with my credit history , BOFA and credit union banks rejected my loan application. I paid all my credit card bills. Now there was nothing due. Which bank gives me lower interest rate loan? What do you suggest?

Thanks and Regards,


Dear Venkata,

You said you bought your car this month. Did you mean August, 2011?

Your current interest rate isn’t all that bad considering a number of late payments. Is there some reason you MUST refinance at this point or are you just looking for a lower rate?

Did you use the free Credit Karma score calculator to see what you would need to do to raise your credit score?

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • Hi Steve,

    Actually it is August 2011. I am looking for a lower interest rate. I paid my credit card bills today. So I dont know how long it takes for my credit score to recover. The credit karma suggests to maintain the usage of credit cards to less than 30 % and avoid late payments


    • In that case it sounds like you have a pretty good interest rate on your current loan based on your current credit score and recent late pays. I doubt you’d find a better deal.

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