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as the other poster stated you will to bring money into any refinancing. You're asking a bank to refinance a four year old car for six years. To be honest I'd be surprised if you're only four thousand upside down unless you put a lot of money down initially. This should be a warning to others. Please don't finance used cars for 72 months. It's bad enough on new cars but when you do it on a used one you're setting yourself up for financial 'disappointment'. If you can come up with quite a few thousand dollars to pay down your current loan I think you are going to be u successful. Good luck
From your post it sounds like the collection has reported after your discharge but it is reporting a debt that was discharged in your Bk in 2011. If that is true, then the collector is violating the bk discharge injunction.
You don't want to just dispute this - you want to get in touch with the CA and tell them they are violating the discharge injuction and if it isn't removed immediately, then you will take it to court. They will have to pay for your attorney plus pay you $1000 for the violation. If they don't remove it or if they give you a hard time, go to a consumer attorney that handles these types of violations immediately. One letter to the CA from the attorney and you will be golden.
A collections account after a Bk is a credit killer. This is probably the main reason the CU turned you down. There could be other reasons we don't know about - like your income. But I suspect this is the main reason.
look into burbank city credit union... that's who I just refinanced with and they use TU and they will take 125% LTV of the car if you want.
@StartingOver10 wrote:From your post it sounds like the collection has reported after your discharge but it is reporting a debt that was discharged in your Bk in 2011. If that is true, then the collector is violating the bk discharge injunction.
You don't want to just dispute this - you want to get in touch with the CA and tell them they are violating the discharge injuction and if it isn't removed immediately, then you will take it to court. They will have to pay for your attorney plus pay you $1000 for the violation. If they don't remove it or if they give you a hard time, go to a consumer attorney that handles these types of violations immediately. One letter to the CA from the attorney and you will be golden.
A collections account after a Bk is a credit killer. This is probably the main reason the CU turned you down. There could be other reasons we don't know about - like your income. But I suspect this is the main reason.
Thanks for tha advice StartingOver! So in your opinion the dispute itself won't resolve the issue? I have such awful memories of dealing with CA's so if I can get it removed without contacting them I would love to do so, if not I will just deal with it and contact them.
My income is a little over 20k right now, which is a drop from where my CU had my income last year, but it's still more than enough to cover my car payment and current monthly expenses that I listed on my application. I'm not sure if that would be considered a low enough income to be a factor in a denial? In the event that the $0 open collections is the reason, I wonder if I should ask for a reconsideration since it's inaccurate information ...
@Anonymous wrote:as the other poster stated you will to bring money into any refinancing. You're asking a bank to refinance a four year old car for six years. To be honest I'd be surprised if you're only four thousand upside down unless you put a lot of money down initially. This should be a warning to others. Please don't finance used cars for 72 months. It's bad enough on new cars but when you do it on a used one you're setting yourself up for financial 'disappointment'. If you can come up with quite a few thousand dollars to pay down your current loan I think you are going to be u successful. Good luck
Thanks Irish80, unfortunately my hours at work just got cut and I can't dip into my savings right now to pay that much towards my car without sacrificing the safety net I have in place to pay my living expenses while work is slow. I'd be willing to put down about 1k but that's the best I can do. Also I'm currently financed for 72 months but as I said in my OP, my goal is to shorten the term of my loan and lower the interest I am paying. I'm not sure there are many people who would willingly finance a used car for 72 months if they had other better or more fiscally sound options. In my case in order to buy my car with my credit score, a manageable down payment and no guarantor, I needed to agree to those terms.
@Creditaddict wrote:look into burbank city credit union... that's who I just refinanced with and they use TU and they will take 125% LTV of the car if you want.
Hey Creditaddict! If you don't mind me asking ... what is your new loan term, amount, interest rate, and income (another poster mentioned my income might have been a factor)? Also how old is your car? I have a 684 with Experian right now (need to check my TU score) and I'm expecting that to drop a bit due to this latest inquiry . Since LA financial credit union already noted 6 inquiries (now 7) as a key factor in their denial I don't want to keep adding applications to that tally if I'm not likely to be approved.
@Anonymous wrote:
@Anonymous wrote:as the other poster stated you will to bring money into any refinancing. You're asking a bank to refinance a four year old car for six years. To be honest I'd be surprised if you're only four thousand upside down unless you put a lot of money down initially. This should be a warning to others. Please don't finance used cars for 72 months. It's bad enough on new cars but when you do it on a used one you're setting yourself up for financial 'disappointment'. If you can come up with quite a few thousand dollars to pay down your current loan I think you are going to be u successful. Good luck
Thanks Irish80, unfortunately my hours at work just got cut and I can't dip into my savings right now to pay that much towards my car without sacrificing the safety net I have in place to pay my living expenses while work is slow. I'd be willing to put down about 1k but that's the best I can do. Also I'm currently financed for 72 months but as I said in my OP, my goal is to shorten the term of my loan and lower the interest I am paying. I'm not sure there are many people who would willingly finance a used car for 72 months if they had other better or more fiscally sound options. In my case in order to buy my car with my credit score, a manageable down payment and no guarantor, I needed to agree to those terms.
Understandable. I hope you find a way to refi. It certainly will help your overall situation.