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Sophiamarie
Posts: 68
Registered: ‎04-19-2011
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My Credit Union is not letting me refinance my auto loan! Help! :(

[ Edited ]
Ok I am not sure what to do here. I refinanced my auto loan 2 months ago, my Equifax score was 610 ... I just had my collections deleted and I paid off all my CC debt, my Equifax right now is 680 ... I went to the credit union and they say I have to make at least 10 more payments before refinancing.

Right now my balance is $19,420 APR 10.25% Monthly payment $370 (only $200 goes to the principal and $150 for interest) horrible I know :smileysad:

I've worked very hard to get my credit where it is right now, I could have 3.75% APR with my current score, but they want me to make 10 more $370 monthly payments before even considering refinacing.


What should I do? Should I wait 10 months or take my business somewhere else? I'd hate to do all the paperwork again ...

My current credit union is GTE Federal Credit Union


Thanks for any advice! :-/

EXP 725 (Amex) EQ 678 TU 735
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StartingOver10
Posts: 4,404
Registered: ‎03-06-2010
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Re: My Credit Union is not letting me refinance my auto loan! Help! :(

[ Edited ]

I've had several auto loans with GTECU. They are a decent/good CU.

 

Having said that, I don't know of any lender that doesn't have guidelines when they are refiancing a vehicle. It sounds like you are either currently upside down in the vehicle or they have a minimum period in their loan required before a refi. Is that why they are having you wait for 10 payments or is it because there is a small pre-payment penalty if you pay off the loan in the first year? What does your specific note say? 

 

As to the paperwork, you will have to fill out paperwork anyway no matter where you go to refi - even if GTECU refi's their own loan. IMO, you probably need to show at least 6 payments in your current loan to any lender before you get a refi - two payments is just not a long enough history.

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pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: My Credit Union is not letting me refinance my auto loan! Help! :(


StartingOver10 wrote:

I've had several auto loans with GTECU. They are a decent/good CU.

 

Having said that, I don't know of any lender that doesn't have guidelines when they are refiancing a vehicle. It sounds like you are either currently upside down in the vehicle or they have a minimum period in their loan required before a refi. Is that why they are having you wait for 10 payments or is it because there is a small pre-payment penalty if you pay off the loan in the first year? What does your specific note say? 

 

As to the paperwork, you will have to fill out paperwork anyway no matter where you go to refi - even if GTECU refi's their own loan. IMO, you probably need to show at least 6 payments in your current loan to any lender before you get a refi - two payments is just not a long enough history.


+1.  You have to have a certain number of payments before lenders will do a refi ~ and honestly 10% isn't that bad of a rate, so just ride it out for another 10 months and then you'll be good to go.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
New Contributor
Sophiamarie
Posts: 68
Registered: ‎04-19-2011
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Re: My Credit Union is not letting me refinance my auto loan! Help! :(

[ Edited ]

StartingOver10 wrote:

I've had several auto loans with GTECU. They are a decent/good CU.

 

Having said that, I don't know of any lender that doesn't have guidelines when they are refiancing a vehicle. It sounds like you are either currently upside down in the vehicle or they have a minimum period in their loan required before a refi. Is that why they are having you wait for 10 payments or is it because there is a small pre-payment penalty if you pay off the loan in the first year? What does your specific note say? 

 

As to the paperwork, you will have to fill out paperwork anyway no matter where you go to refi - even if GTECU refi's their own loan. IMO, you probably need to show at least 6 payments in your current loan to any lender before you get a refi - two payments is just not a long enough history.


Yes they are a good credit union, I never had any issues with them, and that's why I am hesitant to move somewhere else. 

 

They have a minimum period of 12 months required before refi, that's in their guidelines. 

 

I had this auto loan with Santander (16% APR) before GTE FCU for about 8 months, however it will be hard to show proof of those payments because the car was under my friend's name.  At that time I didn't have any credit so she helped me, I used checks to make the payments and they were under my name, GTE accepted those as proof of 6 payments.

 

I may have trouble refinancing somewhere else because I am upside down on my loan, and like you mentioned, I only made two payments.  I dont want to go shopping around and getting all those inquiries... I already have 8 on Equifax .... AND if I do get approved for a refi, I will have to pay $150 for a title transfer at the DMV, plus the GAP insurance (not sure if the one I have right now transfers) and that one is $270 :-/

 

 


EXP 725 (Amex) EQ 678 TU 735
Established Contributor
2NE1
Posts: 999
Registered: ‎12-06-2011
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Re: My Credit Union is not letting me refinance my auto loan! Help! :(


Sophiamarie wrote:

Yes they are a good credit union, I never had any issues with them, and that's why I am hesitant to move somewhere else. 

 

They have a minimum period of 12 months required before refi, that's in their guidelines. 

 

I had this auto loan with Santander (16% APR) before GTE FCU for about 8 months, however it will be hard to show proof of those payments because the car was under my friend's name.  At that time I didn't have any credit so she helped me, I used checks to make the payments and they were under my name, GTE accepted those as proof of 6 payments.

 

I may have trouble refinancing somewhere else because I am upside down on my loan, and like you mentioned, I only made two payments.  I dont want to go shopping around and getting all those inquiries... I already have 8 on Equifax .... AND if I do get approved for a refi, I will have to pay $150 for a title transfer at the DMV, plus the GAP insurance (not sure if the one I have right now transfers) and that one is $270 :-/

 

 


I thought for the GAP insurance, they add the one-time payment to the amount you're refinancing... well, that's what my local CU told me. I just refinanced my car of a whopping 26.99% APR ($598/mo) to a 8.74% APR ($331/mo)... I bought the car in Nov 2010 and paid over $7K thoughout 2011 and ONLY $2K went towards the principal!

 

so paying 10 more months at your current APR% is not bad at all... just hang in there, it'll be worth the wait! :smileyhappy:


Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
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stoopidmunkee
Posts: 207
Registered: ‎01-28-2009
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Re: My Credit Union is not letting me refinance my auto loan! Help! :(

Reading this makes me a little peeved I couldn't get a refi with my CU.
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