Chase auto refinance approval -- **bleep**?

[Anonymous]

So since I've rebuilt quite a bit (built a year and a half of positive payment history, just got approved for an Amex and a Chase Freedom Unlimited, and put that year and a half worth of solid on time payments into my current auto loan and recreational (motorcycle) loan) -- I decided maybe I should try to refi my auto loan (currently $21.5k @ 9.95%) with Exeter Finance.

Chase came back with an approval at 16.39% which INCLUDES 0.5% in discounts for being a chase customer and making automatic payments. My payment would go from $481/mo to $527.30.

What gives? Why would they quote me almost 7% higher than I'm already paying!?

And is it worth the $50/mo to be with a prime lender?

[DaveInAZ]

Why would they quote me almost 7% higher than I'm already paying!?

 - For starters, Chase isn't a very good place for car loans.

And is it worth the $50/mo to be with a prime lender?

- Absolutely not. For credit cards yes, a Chase Freedom is considered much better than say a Credit One card or Walmart store card, but for car loans it makes almost no difference who the lender is. .

You don't indicate what your credit scores are, but with an Amex and a Chase card you should be able to do much better than the Exeter Finance 9.95% rate. You might try Capital One Auto loans because they'll quote you a rate with a soft pull of your credit. If you'll willing to open at least a savings account with them DCU (Digital Credit Union) has some of the best rates, I got 2.99% last fall with a credit score around 695.

[Anonymous]

wrote:

Why would they quote me almost 7% higher than I'm already paying!?

 - For starters, Chase isn't a very good place for car loans.

And is it worth the $50/mo to be with a prime lender?

- Absolutely not. For credit cards yes, a Chase Freedom is considered much better than say a Credit One card or Walmart store card, but for car loans it makes almost no difference who the lender is. .

You don't indicate what your credit scores are, but with an Amex and a Chase card you should be able to do much better than the Exeter Finance 9.95% rate. You might try Capital One Auto loans because they'll quote you a rate with a soft pull of your credit. If you'll willing to open at least a savings account with them DCU (Digital Credit Union) has some of the best rates, I got 2.99% last fall with a credit score around 695.

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Refi pre-qualification declined with Cap One :-(

[Miner]

 To answer one of your questions, I would not refi a loan at a higher rate for any reason.

I'm curious about your credit situation as you don't provide any information that we can use to understand your situation.  The part I don't get is you qualified for a Chase CC but can't for a Cap1 autoloan (who is pretty easy to qualify for) and Chase gives you a really crappy sub-prime rate. 

In my case, I can't qualify for a chase CC freedom card and yet they gave me an auto loan through a dealer a few months ago at 5.99% for 4 years or 6.99% at 5 years.  Though I did put 20% down without being asked and have a clean history on previous auto loans.  Cap1 approved me at a similar rate despite a previous 5.8 year old chargeoff on a CC from them that I only paid a few months prior to their auto loan approval.  So you clearly have something going on with some of your reports as your situation is the opposite of mine. 

Do you have a prior repo or a lot of late payments on a prior auto loan or your existing one?  Auto loans tend to use an Auto Enhanced credit scoring where you past auto loan history plays a bigger part in your scoring than your other history.

[Anonymous]

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@Minerwrote:

 To answer one of your questions, I would not refi a loan at a higher rate for any reason.

I'm curious about your credit situation as you don't provide any information that we can use to understand your situation.  The part I don't get is you qualified for a Chase CC but can't for a Cap1 autoloan (who is pretty easy to qualify for) and Chase gives you a really crappy sub-prime rate. 

In my case, I can't qualify for a chase CC freedom card and yet they gave me an auto loan through a dealer a few months ago at 5.99% for 4 years or 6.99% at 5 years.  Though I did put 20% down without being asked.  Cap1 approved me at a similar rate despite a previous 5.8 year old chargeoff that I only paid a few months prior to their auto loan approval.  So you clearly have something going on on some of your reports as your situation is the opposite of me. 

Do you have prior repos or a lot of late payments on a prior auto loan or your existing oneauto loan?  Auto loans tend to use an Auto Enhanced credit scoring where you past history with auto loans plays a larger part in your scoring than your other history.

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You can check my posting record for links to all of my other current posts, I just signed up last Thursday and have posted a whole lot of info about myself. Otherwise, here's the basic rundown:

04/2008 - CH7

06/2010 - 3 Student loans - never made a payment and defaulted. In 2016 I completed the rehab program and all 3 were totally removed from my report and replaced by 1 for the total sum of all 3 and marked closed in good standing with a couple of on-time payments that I never made (hey, I won't complain). Then in 2017 all 3 got assigned to a new servicer and I've had a perfect history with them for the past year.

07/2012 - Auto loan charged off with negative history going back to 10/2011.. but none of this history shows on my report anymore, it just shows charged off with $0 balance.

03/2014 - about 8 medical collections, some of which have fallen off or changed hands due to Lexington Lawfirm's handywork (I recently fired them) and have since reported as NEW collections over the past couple months.

01/2015 - started opening credit cards, in order: cap one secured, credit one visa, first national legacy, merrick bank, kay card w/ genesis, care credit by sync, credit one mastercard, amazon prime by sync, walmart by sync, victorias secret by comenity, j crew by comenity, amex gold delta, chase freedom unlimited, exxonmobil by citi, chevron by sync, bank americard platinum+ -- all of which have 100% positive history -- latest cc obtained 03/16/2018

07/2015 - Auto loan with Exeter, $26k at 18% APR -- 100% positive history

10/2016 - Auto loan with Exeter for new vehicle, $25k at 9.95% APR, traded in which paid off and closed previous in full and in good standing, also obtained recreational loan in the same week with a subprime bank in Cali for a motorcycle, $10k at 18% APR -- all 100% positive history

That is literally my entire credit report. Why I'd be turned down by Cap One but approved by Chase? I don't know. Maybe the same reason Cap One won't give me a credit card but Amex, Chase, and BoA will? Because I opened a secured card during the window-of-doom in early 2015 and they just hate me for it?

[Miner]

Looking at your history, it seems like your NEW collections are doing the most damage.  The fact that their opening date is very recent is likely making their affect worse.  Until you bring everything current on those or get them removed somehow, I don't think you'll get a very good rate from anyone though you'll get some high rate offers which you already know.  The fact that they are a medical collection can mean for some models that they aren't treated as bad as other type of collections. You might try to see if they can be settled for much less than what is owed.   After you get everything caught up, after a few months with nothing but positive history, you'll likely see much better loan rates.   However, whoever had that chargedoff auto loan will likely still have a record of it in their computer if it wasn't paid so don't bother applying with whoever it was. 

But yeah, if you never screwed Cap1, then I don't get why they won't approve you for an autoloan but Chase did.

[Anonymous]

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@Minerwrote:

Looking at your history, it seems like your NEW collections are doing the most damage.  The fact that their opening date is very recent is likely making their affect worse.  Until you bring everything current on those or get them removed somehow, I don't think you'll get a very good rate from anyone though you'll get some high rate offers which you already know.  The fact that they are a medical collection can mean for some models that they aren't treated as bad as other type of collections. You might try to see if they can be settled for much less than what is owed.   After you get everything caught up, after a few months with nothing but positive history, you'll likely see much better loan rates.   However, whoever had that chargedoff auto loan will likely still have a record of it in their computer if it wasn't paid so don't bother applying with whoever it was. 

But yeah, if you never screwed Cap1, then I don't get why they won't approve you for an autoloan but Chase did.

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Tell me about it.

P.S. that auto CO was Santander -- trust me, I'd walk til my feet were bloody before financing with them again.