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I bought my car in march, the load in through Td auto finance. My credit at the time was not so good. So to build up some credit I financed this car. The interest Rate on the Td auto finance loan is 25%. I've had perfect payments since I took out the loan. What are my options. When I called Td auto finance they said I can trade in the car to get a new vehicle at a lower interest rate, financially the interest is not in my best interest for myself and family. Is there a solution to reduce the interest even if to means trading the car. Thank you .
August 23, 2013 06:19:57 PM
Borrowing and Managing Your Credit, Auto Finance/Loan
In reply to Azim, Calgary
Thanks for reaching out and I'm glad to hear that you've worked hard to improve your credit.
Given that you're with TD Auto Finance (through the dealer), I would recommend that you visit a TD branch and apply for a TD Auto loan - which may be lower in interest. Keep in mind that they will need to complete a credit application, where approval is based on your credit history, stable income and overall healthy finances. If approved, TD would advance the funds and pay the dealer on your car and you would then resume paying your new loan.
If you'd like to learn more about the options of this loan, please visit http://www.tdcanadatrust.com/products-services/banking/personal-credit/autoloan.jsp. This will help you understand why an auto loan from TD Canada Trust may be an option to consider - plus it gives you the choice of fixed or variable interest rates. No matter what option you choose, you can still pay down the entire loan at any point, with no additional costs to you. Competitive interest rates are available, so visit us today at any TD Canada Trust branch or call 1-877-247-2265.
If you'd like to calculate how much you can potentially save, please try our TD Auto Loan calculator http://www.tdautoloanscalculator.com.
Hope this helps you, Azim! Thanks so much for connecting with us today.
August 26, 2013 01:16:15 PM
In reply to Stephanie, Toronto
I already filled out an application and because of my credit report they were unable to finance. But because my existing loan is with td auto finance. Are there any options. Giving the interst i am paying I would have to give the car up. A lower interest rate would reduce my monthly payment. This would help me a lot. Thanks
August 26, 2013 01:52:23 PM
Thanks for reaching out again and sorry to hear your application was declined.
Given that your refinance application was not approved, indicates that your credit history may still be bruised; and as a result, your options may be limited at this time. This would likely include any modification related to the interest rate on your existing loan/contract. Therefore what I'd recommend is that you focus on rebuilding credit and try re-applying again at a later time.
When rebuilding credit, TD typically recommends to start with a secured credit card which uses your savings as collateral. By simply making regular on-time payments, over time your credit history should improve. However, since your chose to finance your car as a means to rebuild your credit, then it’s important to continue making payments in full every month. Failing to make timely payments in full will impact your credit; or choosing to give up the car, would severely impact your credit history over the next seven years.
If you feel your cash flow is tight, then I'd recommend:
* Budget your income to ensure your obligations are met (which may include sacrificing variable spending - like coffee, or eating out) http://www.tdcanadatrust.com/planning/cashFlowCalc/input_en.html?src=tdhelps
* 8 ways to improve your cash flow http://www.tdcanadatrust.com/planning/everyday-finances-made-easy/everyday-finances-made-easy/8-tips-to-improve-cash-flow.jsp
* 6 ways to improve your credit rating http://www.tdcanadatrust.com/planning/everyday-finances-made-easy/everyday-finances-made-easy/improve-credit-rating.jsp
Work on rebuilding your credit over the next year and then revisit your TD branch to see whether you can re-apply for the TD Auto Loan. You may also contact our partners at TD Auto Finance at 1-877-304-3488/1-800-220-9744.
Hope this guides you into the right direction. Best of luck.
August 28, 2013 06:26:11 AM