Happy Friday, all!
Guess what I just did!!!
I just refinanced our auto loan for a MUCH better rate!! Eeeek!!!!!!
I was originally going to wait longer in hopes that my credit score would improve (I’d had a terrible debt-to-credit ratio so I thought my recent additional payments would help my score go up), but then I logged into Credit Karma and discovered that my score has already gone up a great deal and it turns out I have already attained an “A” rating in my debt-to-credit ratio! Wahoo!!
It feels like just yesterday I was barely dipping below the 50% debt-to-credit ratio, and now I’m below 20%!!
And – thanks, Reader (I can’t remember who – tell me in the comments!) for recommending PenFed! I went online, applied for an auto refinance and the whole process was absolutely easy and seamless. I thought it would be a long, drawn out thing and I was picturing myself having to go into an actual branch somewhere, wait around to talk to a banker, sign a billion documents, etc etc etc. But not so with PenFed! The entire thing was done online very quickly (maybe 15 minutes?) and at the end I walked away with a shiny new interest rate of 2.49% APR (compared to the 7.75% APR I have been paying to CarMax Auto Finance).
So my check went out in the mail today and should be here next week. At that point I’ll pay CarMax in full and have a new lien holder for the Explorer.
I’m kicking myself a little because my loan amount is the exact (to the penny) amount of my 10-day payoff at Carmax. I’m kind of wishing I’d applied for a bit extra to knock out some of my higher interest debts (although I know others “poo poo” this type of balance transfer). For better or worse its done now.
This also means my monthly payments are going to lower (by about $100!). As tempted as I am to keep paying the same amount, I’m going to put that extra money toward higher interest debt and try to get it gone! Only about $2200 between me and being credit card debt-free (of course, I have other debts….but the CCs are what prompted me to begin blogging here in the first place).
Very exciting stuff! Wahoo!!!