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My question is, what do people think of this interest rate? Also does anyone have any experience refinancing car loans?


In what context did the dealer say " six months after timely payments ... he can refinance the loan at his bank"? That could mean that it's written into the loan agreement that the loan can't be transferred within six months. Or perhaps they were telling you that after six months of timely payments that your boyfriend's credit rating would go up enough to qualify for a loan at a bank?

Regardless of the answer it should be a priority to refinance the loan. On a 5 year, $10,000 loan moving from 20.5% to 9% interest would make the monthly payment fall from $269 to $208 per month, which is about a thirty percent reduction.


I find it interesting that the used car dealership would share your boyfriend's score with him. They're not required to do that by law or otherwise. I wonder if anyone has fraudulently reported a FICO score to a consumer to justify higher interest rates? That's probably not common since a court order could force the credit reporting agency to reveal the correct score, and it seems the lender would be guilty of fraud.

Here's a link to some information on what factors affect credit ratings: (then click "Demystifying FICO"). The factors give you a pretty good idea of what types of behaviors result in higher credit scores.
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