Question about Refinancing Auto Loan...NFCU/USAA

[Jes77]

Hi!  I have a question about refinancing an auto loan.  My current scores are EX 676, EQ 680 and TU 703.  I want to refinance an auto loan that i have that is about 8% with Ford Credit.  Was wondering with scores like mine do you have an idea of my rate do you think I will get with NFCU or USAA?  Of course would like it less than 8%.  Does "auto enhanced" scores come in to play for refinancing?  I have had multiple car loans paid off or closed.  No baddies when it comes to car loans.  Had multiple lates in 2008/2009 for regular credit cards.  If I were to freeze my EX and EQ and just leave TU unfrozen would that be ok?  Would they only look at that?

Many Thanks!!!

[ExplicitElicit]

Welcome to the forum! Are you eligible for membership with NFCU or USAA? If so your scores are fine. Yes everyone uses an auto enhanced score when applying for any auto financing (even refi), but since you've had good history on all your previous auto loan history you're in good hands. Your baddies have aged enough they won't change your rate. You defiantly have a great chance of lowering that rate from 8%, good luck. If you want just shop around for the best deal.

[Remember0]

Since he has cards with them, I think it'd be a good assumption he's eligible for membership. Also while most banks will use auto enhanced, DCU (and other smaller banks/CUs) definitely don't for what it's worth. But yeah, most big banks will use auto enhanced, absolutely.

OP, I'd start with NFCU or DCU. Since you're already a member try NFCU first. Especially since they seem to give you $250 if you refi with them, I think? And I wouldn't freeze. Sure some CUs will pull another, but many will just refuse to process until you unlock the one they wanted to pull initially. Besides, your 670/680 FICOs are perfectly fine for auto loan purposes.

If NFCU approves but makes you pay more than 4%, look into DCU. At DCU if EQ FICO that they pull is 675+ you should get 1.24% (with direct ddeposit) but they don't give a bonus for refi'ing like NFCU.

[j_casteel]

NFCU uses the same EQ FICO from myFICO (at least they have for every product I've gotten from them: 2 cards, Navchek, and auto refi) with your scores (if they're current) you should be close to their prime rates possibly around ~2% to 4%.

good luck

[avggoal700]

My 2 cents, start with Navy

[ExplicitElicit]

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@Remember0 wrote:

Since he has cards with them, I think it'd be a good assumption he's eligible for membership. Also while most banks will use auto enhanced, DCU (and other smaller banks/CUs) definitely don't for what it's worth. But yeah, most big banks will use auto enhanced, absolutely.

OP, I'd start with NFCU or DCU. Since you're already a member try NFCU first. Especially since they seem to give you $250 if you refi with them, I think? And I wouldn't freeze. Sure some CUs will pull another, but many will just refuse to process until you unlock the one they wanted to pull initially. Besides, your 670/680 FICOs are perfectly fine for auto loan purposes.

If NFCU approves but makes you pay more than 4%, look into DCU. At DCU if EQ FICO that they pull is 675+ you should get 1.24% (with direct ddeposit) but they don't give a bonus for refi'ing like NFCU.

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Haha, can't believe I didn't notice that. Thanks lol!

[Remember0]

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@ExplicitElicit wrote:

Haha, can't believe I didn't notice that. Thanks lol!

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Happens to me all the time lol. It's why if you look over my post history you'll often see I edit my posts a few minutes after initial post.

[Jes77]

Thanks a bunch for the great advice. Still deciding if I should trade it in or just refinance. Not sure yet. Thanks a bunch for the comments. Yes I think I will start with NFCU first.

[Jes77]

UPDATE: So I did go and apply for refinancing at Navy Federal.  My quote was for about 20,800.  This is considered a brand new car and my rate was 5.79.  I was hoping for something better, but receiving the 250 bonus will be nice.  So I accepted the offer.  There is no pre payment penalty or anything so the lady said i can accept and refinance tomorrow if  I wanted to. My original loan through ford credit was 8.55%

However when I got home I decided to check with USAA.  They approved me at 4.25%.  So i like that number better than NFCU.

I decided to push my luck and try DCU.  I did open an account and thought what the hell lets try for their credit card.  Was approved for $8000 at their lowest interest rate.  That is a nice limit for me and will take it.  However was DENIED for their autoloan refinance.  Said I had too many inquires.  I was going to mention I was just approved for one of their credit cards,  but decided i will just go with USAA for now....

Thanks for all the comments!

[Remember0]

Congrats on the USAA approval!

I didn't know DCU was INQ sensitive to be honest. And I don't get the reasoning behind approving for a CC but not a car loan lol. There's way more risk on a CC (what are they going to repo if you don't pay back your CC?). I guess you learn something all the time. Out of curiosity, how many INQs did you have on EQ at the time of the application?