R U FREAKIN KIDDING ME!!

[neesh]

Hi everyone,

This is my situation.  I have been repairing my credit for the last 6 months.  I currently have a 2007 mercedes benz that is financed through coastal federal credit union at a 13% interest rate.   I am paying approximately $575.00 per month for this car.   I got this car in July of 2008 when my credit was horrible and in the low 500's.  I have two previous vehicles that I have paid off with perfect payment history before I purchased this car.  My transunion credit score is 667 now which is what wells fargo pulled.  I have one medical collection that is on this report for $799 that is scheduled to fall off in 2012.  I have a capital one charge off from 2004 this is scheduled to fall of in 2011.  These are the only two things that I have decided not to bother with.  I did an application with wells fargo to refinance my car.  The current credit union I am with will not refinance existing loans.  Wells Fargo offered me up to $26,500 of which $23,120.00 is to pay off my exisiting loan and I could use the extra money to do whatever with but get this, the interest rate was 17%  even more than what I have now!  They offered to extend the refinance for 66 months and my payments would be in the $650 range.  I have been employed with the same company for four years and I make $48,512.00 per year.  I have no morgages just student loans that are deferred until 2014.  I AM TRULY CONFUSED AS TO HOW THEY CAME UP WITH THIS HIGHER INTEREST RATE!!!  I QUICKLY SAID NOOOOO!!!!  I'm sad because I worked so hard to raise my scores!  Can someone please shed some light on this for me!!!!!!  SHOULD I BE TRYING TO REFINANCE NOW!!!

[Anonymous]

You bought a new mercedes and your student loans are in deferment for 4 more years?

[Anonymous]

It's simple too me..you are a $cash$ cow in their eyes your scores are coming up and they figure they can get you to accept whatever terms they throw at you. They are just trying to make more money by extending the loan terms and giving you that extra money as a tempting bait. Their schemes know no bounds. Just keep shopping around for better terms.

Good luck

[neesh]

You bought a new mercedes and your student loans are in deferment for 4 more years?

yes.. I.bought a mercedes benz in July of 2008 and because I am still in school my loans are deferred until 2014..  Do you have any suggestions?

Vehicle Loan Account Coastal Fcu

Status as of [?] Date opened [?] Date of last activity [?] Date paid out [?] Date closed [?] Account number [?] Loan type [?] Credit limit [?] Largest past balance [?] Terms [?] Account Type [?] Account holder [?] Scheduled payment amount [?]

Apr, 2010

Jul, 2008

Apr, 2010

Not Reported

Not Reported

XXXXXXXXX0001

Automobile

Not Reported

$27,854

75 Monthly

Installment Account

Individual Account

$576

Descriptions [?]None on Record

Contact Information [?]

Po Box 58429
Raleigh, NC 27658
9194208000

Balance [?] Current Status [?] Past Due Amount [?]

$23,643	Paid or paying as agreed	$0

Seven year payment history [?] 30 days late 60 days late 90+ days late

0 times

0 times

0 times

Recent payment history [?] 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 2008 2009 2010

Legend:

Not Open

Currently paid as agreed

Worst Delinquency [?]

Paid or paying as agreed

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

[neesh]

thanks 5th wheel....i will shop around!  I knew that those terms were unreasonable especially since I have been reading this forum.  Thanks for your reply!

[Anonymous]

You are correct....at the very least your rates should be coming down some....not going up that's just common sense. But what they did was threw in that extra cash as a tempting bait to get you too take it. You'll find better rates you just have to keep shopping around, even if it's a few percentage points 3 to 5% or better coming off that's still better then what you have. You'll get it.....just don't settle too many people settle then get trapped like a rat in a maze. You don't want to be that rat do you? I didn't think so.

Good Luck

[m3v8]

Wow... I am in the same boat. And what your current score would be? I'm trying to figure out how much score affects the auto loan, or it is overall history especially with paying off autoloans that is affecting the bank's decision the most?

[marty56]

---

@neesh wrote:

I have one medical collection that is on this report for $799 that is scheduled to fall off in 2012.  I have a capital one charge off from 2004 this is scheduled to fall of in 2011.  These are the only two things that I have decided not to bother with.

---

You might want to reconsider this plan.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Being-sued-by-Capital-one/td-p/674492

If you try to tackle both problems, you could improve your score enough to get a much better rate.

[CruisinCindy]

Ummmm are we overlooking the obvious? You earn 48K a year and your car loan is 23K. That is almost half of your yearly salary. Any thoughts to selling it and getting a smaller car loan? Will you be able to pay 576 per month for your car plus SL in four years? Just something to think about.

[Anonymous]

Consumer lending is a lot stricter these days.  Anyone you approach will be hesitant to finance you with great rates, despite your decent numerical score if they do a manual review of your credit.  Your student loans (how much in student loans?) are going to be due relatively soon, and your salary of $48K is expected to be able to cover your upcoming student loan payments, rent and other monthly expenses (surely you have credit cards?), and financing of your automobile.  How much does that leave you with for discretionary spending once everything is subtracted?  The amount of debt compared with your income factors the highest with automobile financing and even though those student loans are deferred, since they are going to become due during the time that you will have the car refinanced, they are impacting all lending decisions.

Also, while you have a couple old collection marks that are due to fall off, manual review of your credit indicates to the lender/loan officer that you are selectively paying creditors, which could figuratively be the straw that broke the camel's back. 

Unrelated, but did you choose to post in Comic Sans?