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Posts: 9
Registered: ‎03-22-2013
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Approved for refinance

I had filed BK 7 9/2012 and it was discharged 12/2012. I made the mistake of buying a car before the BK was discharged. So with that, I was financed for 2012 Chevy Cruze, $20,000 new. I have 6 months of paying $470/mo @ 18% (500 scores at the time). I am about $1500 upside down in it. Just a week ago, I applied for a refi at my CU, they told me my EX was 620, qualifying me for 9% and 110% value of the car (about $19,800) but they denied the loan b/c BK and so did Chase, and CapOne. I decided to try one more CU and I found out yesterday that I was approved! I am going in and signing the paperwork for 9.25% (I know, it's not great but it's better) and 110% value of the car which leaves me paying about $500 towards the negative equity. This saves me about $110/mo! I'm so excited!


So anywho, what I am wondering is how might this change my credit? I am assuming it'll show off a paid loan and a new account. I assume my score will drop at first b/c of the new account but will it be a lot better in the long run? I have about 2 years before I want to buy a house so inquiries and new accounts aren't a big concern for me right now.

Starting Score: TU488 EQ470 EXFAKO585
Current Score: TU552 EQ515 EXFAKO598 EX648CUpull
Goal Score: TU620 EQ620 EX675

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Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
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Re: Approved for refinance

In the long run it won't be a problem.


Just get that car paid off before the mortgage app.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    

     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
New Member
Posts: 4
Registered: ‎01-13-2014
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Re: Approved for refinance

Can you give me the info on the CU you financed at?  I too own the same car and have been desperately trying to get out of it or refi because my ex-hub is the cosigner.

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