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Auto refinance to pay credit cards

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Anonymous
Not applicable

Auto refinance to pay credit cards

Hi all,

 

I would like your opinions/recommendations about auto refinancing to pay down my credit card debt.  According to NADA my car retail value is over $20K, 2011 Nissan Maxima SV.  My current APR is 2.59%, I owe about $8K.  I am hoping to get $10 to pay down credit cards.  I originally thought of obtain a personal loan, but i think the APR on auto loans is much less.  Also I am interested in establishing a relationship with a CU, hopefully I can obtain a high limit credit card with the auto loan and a mortgage in the future.  Many good reviews about DCU?  Any recommendations would be greatly appreciated.

 

My pre-tax income is around $6-7K a month.  

 

My FICO scores as of today are: EQ 708, TU 703, EX 706.  only negatives are late payments from 2008/2009.

 

Thanks in advance for your help.

Message 1 of 10
9 REPLIES 9
IWOL
Established Contributor

Re: Auto refinance to pay credit cards

I just did a "cash out" refi with DCU. The process was very fast with them and I took $8k out from the $15k equity that I had in the car.

 

My EQ Fico was 716 and they gave me a rate of 1.49 with auto debit from DCU checking. If you don't use the auto debit you can get 1.99%.

 

After I applied for the loan it took 2 days to process and on the 3rd day I spoke with them and signed all the documents online using verisign. Check went ouu to Wells **bleep**o that day to pay off original loan and they overnighted a check to me for the  difference of $8k.

 

I had 50 months  left on my Wlells Loan, new DCU loan is 65 months, so I got $8k cash out and my payment dropped for $533 to $484.

 

Best thing to do is call them and apply by phone and they will give you a decision right away and the  rate.

 

i had about $6k of balances that were on 0% intro cards about to expire so I paid those off with the cash out.

 


Message 2 of 10
IWOL
Established Contributor

Re: Auto refinance to pay credit cards

Didn't mean to create a bleep with Wells not sure why it did that but that made me laugh because it is very appropriate.


Message 3 of 10
Anonymous
Not applicable

Re: Auto refinance to pay credit cards

Thanks IOWL, were you able to become a memeber and get the loan on the same phone call with them. If you dont mind me asking did you get anything else from them. Thanks again for your response.

Message 4 of 10
IWOL
Established Contributor

Re: Auto refinance to pay credit cards

Yes, I applied for the loan and membership at the same time. You have to open a share/savings account  with $5 for the membership and make a $10 donation to an organazation. They do that all for you.

 

I also opened a checking account so I could get the extra 0.5% discount on the rate. You have to set up a direct deposit as well to do that.

 

As long as you dont have any negative items on CHEX getting memebership should be no problem.

 

They will ask for W-2's for income verification so make sure you give them the correct verifiable income when applying.

 

They will also need a copy of your registration and loan payoff sheet form your current servicer that shows the payoff amount due to process the loan.

 

DCU is an excellent orginazation to work with and they seem to offer the best rates you can get.

 

 

 

 I didnt apply for any of thier other products like CC but you do also get a monthly EQ Fico form them which is a nice bonus as well.


Message 5 of 10
Anonymous
Not applicable

Re: Auto refinance to pay credit cards

Thank you, do you know if it wa one or two HP of your report?

Message 6 of 10
Ragelog
Established Contributor

Re: Auto refinance to pay credit cards

I was approved on a refi about 3 weeks ago. It was 2 pulls on EQ one for the Loan and one for the Membership. I know you can get a CC on the same pull as the loan but I think both the membership and loan pulls are separate.

EQ04 675, EQ08 676, EX08 719, TU08 703 $12704.75/$123050 Revolving Credit (All 0% or 1.99%) - In Garden Since 5/25/2016

Last negative item should fall off in July 2017.
Message 7 of 10
Anonymous
Not applicable

Re: Auto refinance to pay credit cards

Thanks, did they ask how much you wanted or offered you the NADA value for the car? also how did you get the 48 months, did they only offer you that or do they give you options.  Sorry for asking a lot of questions. 

Message 8 of 10
IWOL
Established Contributor

Re: Auto refinance to pay credit cards

They wil ask you ho much you want to borrow. They will then look at the Nada value and make a decision based on your profile and how much equity you have etc.

 

I only got one hard pull for the loan and membership but many have reported 2.

 

They offer several term options. I went with 65 months but they offer others.


Message 9 of 10
Ragelog
Established Contributor

Re: Auto refinance to pay credit cards

I only asked for the amount owed on my vehicle. I also said I was fine staying close to the same payment so reducing to 48 months still saved me 50 a month but I plan to pay this off by December 2016 or at least that is my goal. So I will be paying more. I was denied a CC as well since I had like 5-6 new account albeit most crappy that were less than 6 months old they said let those age another 6 months and they would likely be able to approve me. The CC didn't require an additional pull so I figured why not at that point.

EQ04 675, EQ08 676, EX08 719, TU08 703 $12704.75/$123050 Revolving Credit (All 0% or 1.99%) - In Garden Since 5/25/2016

Last negative item should fall off in July 2017.
Message 10 of 10
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