06-30-2014 02:05 AM
I purchased my car back in August of 2013. It is a 2003 and it has over 170,000 miles on it. At the time, my credit score was 548 so I only qualified for a sub-prime lender, which was Westlake Financial and I am currently paying 25% interest for it. Which is ridiculous! However, since then I have been working very hard on improving my credit, fastforward to now (10 months later), my credit score is 140 points higher. I went from Very Poor to Good credit status. I have been looking into refinancing the car however the issue is the car is over 10 years old and it has over 100,00 miles on it and all the refinance companies I have seen online, states it is over milage requirement (which is up to 100,00 miles) to be approved for a refinance.
This is a simple interest loan, I started the loan at $6000, I have about $4500 left on the loan, after 10 months of payments. My payment is $260 per month.
Do I have any other options at this point, besides trying to make extra payments to lower the balance? Any suggestions?
Thanks in Advance for your assistance.
06-30-2014 08:18 AM
Since I don't think any bank including a credit union will go that old and that many miles for that small of an amount I would look at Prosper for a personal loan (you can apply and check the rate and it's just a Soft Credit Pull and instant to give you the rate and terms for you to look at and decide if you want to go forward at that time.
LendingClub would be my second choice, just like Prosper, just a sp but I have found prosper approves more often.
06-30-2014 08:24 AM
Ok great! I will look into that. Do you know by chance know which CRA Prosper/Lending Tree pulls?
1 is TU and the other EX sorry I always forget which is which though until I see the denial letter.... they will issue you it instantly online with your credit score if you don't get any offers for the loan... still just a soft pull.
06-30-2014 04:14 PM - edited 06-30-2014 04:16 PM
Another idea in addition to prosper/lc is simply credit cards. There's not a big amount left here to be honest. OP, what kind of cards do you have now and what limits do they have? If you have decent limits, you could hypothetically just app for one of those 0% for 18 months cards and be set, but that depends on what your current credit limits look like.
I say you should get a quote with LC in addition to Propsper. LC I know is just a soft pull to see your rate. BTW if you go with lending club (or if they approve at a lower APR), post your loan number/link here (or PM me) haha! I have an account there and would love to fund part of the loan.
06-30-2014 05:05 PM
06-30-2014 09:48 PM - edited 06-30-2014 09:51 PM
Yeah, if the CC is going to report soon and you have none yet, I'd wait.
Given that you have no other cards, it'll be hard to get 5k in unsecured credit so I think your best bet is going to be Prosper and LendingClub and seeing what they can offer you/approve you at. At LC and prosper, 40 points makes a huge difference in rate as does low 700 vs high 600 FICO. So definitely wait till that card reports.
On a side note, what is the NADA Clean Retail Value of your car? DCU I think does car loans for older cars. If prosper/lendingclub give you a higher rate, it could be worth a shot to try DCU. I think DCU's rule is the car has to be paid off before the vehicle is 12 model years old. But I'm not sure how heavily they enforce that. Still I think a 18 or 20 month loan through them might work as a backup plan.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.