Capital One- too good to be true?

[Anonymous]

I ended up having to buy a car pre-discharge at 17.18% with a $500 a month payment and our scores were low 400's then. Anyway Ive been shopping around to re-finance and I can't seem to get it done at a much lower payment. We kept getting re-finance papers from capital one and so I decided to call and thats when they told me about financing through them since we have credit cards with them now. They said it would be better to trade the vehicle we bought in for a newer model and at a much lower % rate so I did the online thing and was approved for $29,860 at a starting rate of 6.5 - 11%. Already printed the paperwork and going to a dealer tomorrow morning  to see what kind of trade in deal I can get and new finance and payment. We are financed with Tidewater Finance now and I don't really like them or the way they treat there customers.

[Dj4Money]

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@Anonymous wrote:

I ended up having to buy a car pre-discharge at 17.18% with a $500 a month payment and our scores were low 400's then. Anyway Ive been shopping around to re-finance and I can't seem to get it done at a much lower payment. We kept getting re-finance papers from capital one and so I decided to call and thats when they told me about financing through them since we have credit cards with them now. They said it would be better to trade the vehicle we bought in for a newer model and at a much lower % rate so I did the online thing and was approved for $29,860 at a starting rate of 6.5 - 11%. Already printed the paperwork and going to a dealer tomorrow morning  to see what kind of trade in deal I can get and new finance and payment. We are financed with Tidewater Finance now and I don't really like them or the way they treat there customers.

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 This is why I don't recommnd buying used cars with high interest loans, you'll be trapped because the car is worth WAY less than the total loan amount. Most banks will go up to 100% or 120% Loan to Value (LTV) most used cars more than four-five years old will be in this hole. 

 Best advice is what they told you, trade-it-in.

 Now you'll have to find a car with enough money either in discounts or on the hood to offeset the pay-off amount. You''ll also need TTL (Tax, Ttitle and License) as well.

  Your best bet is too look for any leftover 2015's as the discounts are deep and the incentives high. You'll need a LTV no more than 100% and you'll get accepteed.

[Anonymous]

Dj4money, Thanks for the info! Yeah I had no choice but to buy one pre-discharge because my car was totaled in a wreck in May. I'll write everything you told me and take that info along when I go looking today. Will let you know how it turns out today. I will be keeping  my tag that I already have since its pretty new.

[cartwrna]

How far are you upside down, do you know? You'll want to take that into account as you'll want a discount equal to or better than that amount. Good luck and congrats on the pre approval!

[Anonymous]

Im not sure how upside down I am, hopefully not a lot!

[Dalmus]

Go to

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@Anonymous wrote:

Im not sure how upside down I am, hopefully not a lot!

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 Go to Edmunds and get the trade in value for you vehicle.  The number you get would be the TOP end of what a dealer will give you for it (after beating them up quite a bit).

 Pro tip:  You car is NEVER in "Excellent" condition.  Don't even entertain that idea.  I had a saleman tell me once that they wouldn't even value new cars sitting on their lot that have never been taken out to drive by a customer as "excellent" condition.

 I'm currently upside down in my load because I was forced into a car when mine died, and I wasn't ready credit-wise for a decent rate.  I am now, but I'd have to come up with a pretty sizeable down payment to offset the payoff amount.  So I opted to just drive this vehicle into the ground and accelerate my payments at the same time.  We'll see what comes first...  Loan payoff and trade-in, or wheels fall off. 

[Anonymous]

Well that was a useless trip to the dealer I am upside down about $6,000 and he said that my Equifax score is only at 580 but credit check total shows above 600 so I have no idea what score is right now? I can't get a refresh of my scores until Feb to verify. Anyway, I guess I am stuck with this $500 a month payment unless anyone knows if capitol one or another place will re-fi it? So disappointed ;( 

[Anonymous]

Update:

I finally found a credit union that would take scores starting at around 580 and up even though they only pulled Equifax and our debt to ratio was low enough. I'm so happy to finally say we got approved for a 7% rate and a payment of $344 a month with the same amount of months. Our 1st payment is not due until the middle of march and we got a few points lower since we also opened up an account with the credit union (checking/savings). I never thought our scores would improve so much since filing chapt 7, This forumn has been a huge help in guiding me in the right direction to now be able to keep getting our scores higher and making sure our credit stays in good standing. I am still learning and know I have a lot more to learn. Thanks to everyone in this forumn 

[Anonymous]

You have to scan & email them a copy of your DL, recent pay stub, and enter (online) 3 personal references. You get a preset $$ amount you qualify for.  APR is determined by vehicle model, year, mileage, and length of loan term you want.

[Anonymous]

Just came home with my car. I have been a long time Cap 1 credit card holder so I didn't have to provide any info. I was able to get a 2015 Mirage at 1.99%.