Originally Posted by Pete Schweaty
7.99 is insane. If I were you I would keep paying on your current car to build your credit for a few more years. For an example, a 25K loan at 7.99 is $510 a month for 5 years. A 3.5% loan with the same terms is 450. That is $3600 you are giving to the bank in exchange for nothing.
Another way to build your credit is to open a credit card with a small limit, 1-$5,000. Make small purchases and pay it off in full every month. Dont put anything on the card you dont have the money for. These 2 things will build your credit pretty quick. Be sure to stay only about 25-30% maxed on your card. For example, if it is a $1000 limit never go above $300, and be sure to pay it every month so you dont pay interest.
x2, this guy speaks the truth, also expand the umber of credit lines you have, have at least 3-4 lines of credit if not 5, never spend above half of your limit and always pay it off, establish a good credit and you have more negotiating room for your rates