NASA & DCU Declined Auto Refi & Credit Card - Student Loans!!!

[Anonymous]

Hello All,

After much trolling of the forum and doing additional homework I pulled the trigger.  I need to refiance my car in preparation for my mortgage application.  My application was recently declined for NASA credit card and auto refinance.   When I asked for the reason NASA (and the rep was very nice) explained that my student loans although deferred (160K expensive undergrad + grad school) were included in my debt to income ratio.    It's included because the c.u. wants to feel confident that the student loans would not preempt me from the ability to pay my car loan ($8800).  I asked if they took IBR payments into consideration....she had no idea what that was so I explained.  She said they used1% of my student loan debt with the my income of $3100 a month plus housing.  Luckily it was not a hard pull.  Praise God.   The representative recommends I ask for reconsideration in light of the new information.

DCU did not use the deferred car loans but did not like the credit rebuild that occurred in the past year.  Credit at 1 year was too new.  Recent inquiries from Feb were a problem.  I do not carry balances, have zero past due balances, zero collectons and zero pub records/bankruptcies. I have paid on time and consistently managing my accounts.  The other problem they seemed to have is that many are store cards (Overstock, TJMax, and a few SCT with no balances). I had opened 2 mc and visa HA! As if I had ALL visa, mastercared and amex the verdict would be any different. 

If anyone knows who may refinace my car....please reply.  Sigh.  Long day.

[Forte747]

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@Anonymous wrote:

Hello All,

After much trolling of the forum and doing additional homework I pulled the trigger.  I need to refiance my car in preparation for my mortgage application.  My application was recently declined for NASA credit card and auto refinance.   When I asked for the reason NASA (and the rep was very nice) explained that my student loans although deferred (160K expensive undergrad + grad school) were included in my debt to income ratio.    It's included because the c.u. wants to feel confident that the student loans would not preempt me from the ability to pay my car loan ($8800).  I asked if they took IBR payments into consideration....she had no idea what that was so I explained.  She said they used1% of my student loan debt with the my income of $3100 a month plus housing.  Luckily it was not a hard pull.  Praise God.   The representative recommends I ask for reconsideration in light of the new information.

DCU did not use the deferred car loans but did not like the credit rebuild that occurred in the past year.  Credit at 1 year was too new.  Recent inquiries from Feb were a problem.  I do not carry balances, have zero past due balances, zero collectons and zero pub records/bankruptcies. I have paid on time and consistently managing my accounts.  The other problem they seemed to have is that many are store cards (Overstock, TJMax, and a few SCT with no balances). I had opened 2 mc and visa HA! As if I had ALL visa, mastercared and amex the verdict would be any different. 

If anyone knows who may refinace my car....please reply.  Sigh.  Long day.

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What are your current scores if you don't mind sharing?

Does the vehicle you intend to refinance have any equity?

[Anonymous]

I know that DCU used Equifax.  Their DCU EQ score was 629, although my auto score for equifax per myfico is 669.  I don't believe my car has equity. At very good condition it is worth according to Kelley $7533. I owe $8650. 

[Forte747]

Your negative equity is not that bad. I would recommed trying with any other local credit union, capital one, and probably wells fargo.

Good luck

[Anonymous]

Thank you for your advice.  You were definitely on to something.

I called Well Fargo where you actually get to talk to a person and ask them a multitude of questions.  My biggest problem was the student loan debt althought the loans are deferred because I'm in school.   Well Fargo is nice enough to speak with but it is still of a bit of decoding session as far as speaking the same language.  I decided to hold off with them. 

I prayed about it.  I received an email out of the blue, from a local credit union about an auto refinance.  I called them, they were thorough and nice!  I asked them my list of questions, their responses sounded good...I took the hit.  The rep said it wasn't like a hard pull it was a soft and would only affect my scores 2-3 points (Transunion).  The next day I got an alert and checked myfico and more score hasn't changed.  Wow.  Fast forward to today...yep I'm approved!  YAYYYYYY.  

Now because the car is 7 years old, with 75K+ miles, although I qualified for the low interest rate (672 TU score), they would only go to 8.4%.  My current loan is at 23% so that was a no brainer.  The new loan overall saved me $2,570 ish dollars over the life of the loan from the previous loan payment.  There was a $95 title fee which was rolled into my payment and there is no payment for this month!

Praise God! No more $8 convenience fees to pay online with Crescent Bank.  And, no more 23% interest with them either! 

[toi34]

Congrats! ...keep up the good work.  

[alextercero]

Nice job, Big Congrats

[Anonymous]

Congrats, credit unions are great to deal with, once you have a relationship with a good one it is worth sticking with them.  Your APR is not terrible all things considered.  

[Anonymous]

Thanks everyone!   I agree, the personal attention is nice.

[ikanga24]

what credit union did you use. Please advise!