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JerseyGirl1984
Posts: 15
Registered: ‎05-30-2014
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Refinance high interest loan on older used car

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.

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Creditaddict
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Registered: ‎10-23-2007
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Re: Refinance high interest loan on older used car

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.

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
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Member
JerseyGirl1984
Posts: 15
Registered: ‎05-30-2014
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Re: Refinance high interest loan on older used car

Ok great! I will look into that. Do you know by chance know which CRA Prosper/Lending Tree pulls?
Epic Contributor
Creditaddict
Posts: 22,064
Registered: ‎10-23-2007
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Re: Refinance high interest loan on older used car


JerseyGirl1984 wrote:
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.

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Member
JerseyGirl1984
Posts: 15
Registered: ‎05-30-2014
0

Re: Refinance high interest loan on older used car

This gives me some new hope!!!

Thanks :smileyhappy:
Valued Contributor
Remember0
Posts: 1,288
Registered: ‎02-12-2014
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Re: Refinance high interest loan on older used car

[ Edited ]

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.

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Member
JerseyGirl1984
Posts: 15
Registered: ‎05-30-2014
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Re: Refinance high interest loan on older used car

Hi Remember,
That's a good idea. As far as credit cards go I'm kinda just getting started or starting over. Nobody told me when I was 20, that credit cards weren't gift cards. lol So 10 years later, the only thing I have on my CR now is this car loan (10 months now-paid as scheduled) but it only post to Experian and TU. So on Equifax, I literally have nothing on my CR. In light of this, I recently opened my first unsecured CC from Capital One and it should start posting to my CRA's within the next 10 days. They only gave me a small amount to start with but still keeping my utilization under 9%. Hopefully, in 6 months to a year, I will have more girth in my file and more CC alternatives. Wouldn't it be better to wait till this new CC starts posting to my CRA's before I apply for a loan? From my understanding, if I play my cards right, I could reap about a 40 point gain. Higher score, lower interest rate right? I am not familiar with how the LC works. I need to do some more research. I have no problems making my car payments, its just I wanna get away from this shark loan sub-prime lender. Let me know your thoughts.... Thanks!
Member
JerseyGirl1984
Posts: 15
Registered: ‎05-30-2014
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Re: Refinance high interest loan on older used car

Oh and you want to help fund my loan....I like you already :smileyhappy:
Valued Contributor
Remember0
Posts: 1,288
Registered: ‎02-12-2014
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Re: Refinance high interest loan on older used car

[ Edited ]

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.

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Member
JerseyGirl1984
Posts: 15
Registered: ‎05-30-2014
0

Re: Refinance high interest loan on older used car

Thanks for the great advice! I will wait alittle longer to make my move. I'll will follow up in a few weeks, hopefully.

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