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Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008
0

Accelerate Auto Payment Plan

This forum has helped me a bunch!  Thank you for your time!

 I want to accelerate payment on my car loan to pif within 1 year. 

Would the following example work?  How would it effect my credit? 

 

Car balance $25,000 ($10,000 upside down...I know)

16% APR

48/72 months remaining

0 late payments

KBB worth approx $20,000 private party

 

Paycheck $4000 total monthly 

Bills/Spending $3000 monthly

Car payment $700 monthly

Credit card $10,000/$0 balance 

LOC $15,000/$0 balance

 

Month 1: 

Put my entire check towards car payment 

Put all monthly bills/spending on credit card

Use LOC to pay credit card bill and car payment

 

Month 2: 

Put my entire check towards LOC

Put all monthly bills/spending on credit card

Use LOC to pay credit card bill and car payment

 

Month 3:

Repeat month 1

 

wash, rinse, repeat until paid in full.

 

Epic Contributor
Creditaddict
Posts: 21,731
Registered: ‎10-23-2007
0

Re: Accelerate Auto Payment Plan


twinkle wrote:

This forum has helped me a bunch!  Thank you for your time!

 I want to accelerate payment on my car loan to pif within 1 year. 

Would the following example work?  How would it effect my credit? 

 

Car balance $25,000 ($10,000 upside down...I know)

16% APR

48/72 months remaining

0 late payments

KBB worth approx $20,000 private party

 

Paycheck $4000 total monthly 

Bills/Spending $3000 monthly

Car payment $700 monthly

Credit card $10,000/$0 balance 

LOC $15,000/$0 balance

 

Month 1: 

Put my entire check towards car payment 

Put all monthly bills/spending on credit card

Use LOC to pay credit card bill and car payment

 

Month 2: 

Put my entire check towards LOC

Put all monthly bills/spending on credit card

Use LOC to pay credit card bill and car payment

 

Month 3:

Repeat month 1

 

wash, rinse, repeat until paid in full.

 


Who is the LOC with? Navy?

Why don't you apply to refi the car??

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008
0

Re: Accelerate Auto Payment Plan

Yes,  all are with NFCU.

I called a year ago to ask about refinancing and the rep told me that they could not do it.  I don't recall the exact reason.

Should I look to refinance with another CU instead of accelerating payments? 

Epic Contributor
Creditaddict
Posts: 21,731
Registered: ‎10-23-2007
0

Re: Accelerate Auto Payment Plan

A year ago... Apply online right now!!!!
I would apply for 48 month loan.
Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008
0

Re: Accelerate Auto Payment Plan

:smileylol:  Ok.  I will post an update.  Thanks!

Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008
0

Re: Accelerate Auto Payment Plan

Update: According to the website..... your vehicle must be financed with another lender to qualify for refinance.

I think that's what the rep stated also. 

Epic Contributor
Creditaddict
Posts: 21,731
Registered: ‎10-23-2007
0

Re: Accelerate Auto Payment Plan


twinkle wrote:

Update: According to the website..... your vehicle must be financed with another lender to qualify for refinance.

I think that's what the rep stated also. 


oh im sorry, you currently have it financed at 16% through Navy? WOW

I thought you meant you tried to refi a year ago and your credit wasn't good enough.

 

yes i would look for other credit unions to try to refi.

 

I would not use your Loc to float bills just because the rate is probably just as high as your car and they calculate that daily so you will spend more money on anythin you borrow from the loc then just paying as you go... and don't think using credit cards with navy just to pay more towards car makes sense either... because if it did you could just cash advance it into your checking account and pay your car but not sure having a $10k maxed credit card and a $15k auto loan is going to do you any good either, because now you have more monthly payments.... just pay as you are and throw every extra penny towards additional payments on that car and start looking for another credit union to refi it.

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Regular Contributor
KoolDev
Posts: 230
Registered: ‎09-26-2013
0

Re: Accelerate Auto Payment Plan

[ Edited ]

Creditaddict is right. 

 

Be VERY careful that you do NOT get into the trap of borrowing from a loan to pay a loan.   Using your LOC is what that is.  It will bite you thru payments and total outgoing.  I have been where you are at.  If anything happens unexpectedly, you will be in a position you cannot pay on your regular bills.  With mine, I bit the bullet and struggled thru becaue i didnt have the credit scores to refi at the time.  Also, if you are upside down that much, you will have to find out what the LTV rate is on the car.  Some banks limit this and It would be too much to try and refi.

 

Just dont want to see you get into a positon where those 0 accounts now have a payment due and you sink through having too many payments.  Things happen, be careful.

 

 

My Sock Drawer: Care Credit $4200-0, JCP 2100-0, Chase 3000-0, Chase Freedom $4500.00-0, WF $1000.00-0.00
In Use: NFCU Visa Sig $17.5k- 0.00k
I still have too MANY CARDS
Starting Score 538
Current Score Oct 30-14 701 fico Eq-- 745 Fico Tu-- 713 Fico Ex
Established Member
twinkle
Posts: 12
Registered: ‎08-31-2008
0

Re: Accelerate Auto Payment Plan

I agree!

 

Update:  I applied to refinance with another CU today and was approved ...pending final review.

 

Term:

 

60 months 

APR 13.75 %

$420 monthly payment

 

I'm required to pay approx $7200 to bring my balance current. The rep mentioned paying this in full or applying for a loan to cover it.  Should I keep what I currently have?

 

What are your thoughts?

Epic Contributor
Creditaddict
Posts: 21,731
Registered: ‎10-23-2007
0

Re: Accelerate Auto Payment Plan


twinkle wrote:

I agree!

 

Update:  I applied to refinance with another CU today and was approved ...pending final review.

 

Term:

 

60 months 

APR 13.75 %

$420 monthly payment

 

I'm required to pay approx $7200 to bring my balance current. The rep mentioned paying this in full or applying for a loan to cover it.  Should I keep what I currently have?

 

What are your thoughts?


Bring Current??

What is the amount you owe Navy

What is the amount of this new loan?

Why would you not get the new loan for just 36 or 48 months?

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:

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