Refinancing Auto Loan - Advice Needed

[leti]

I've decided it's time to refinance my auto loan.  I still have almost 4 years left on it at 11.44%.  My credit score has improved since I originally got my auto loan so I'm hoping that will help with getting a better rate.  Question is - what is the best way to go about this?  Should I apply directly with someone like Capital One or do something like Lending Tree to find a lender?

[lajntx]

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@leti wrote:

I've decided it's time to refinance my auto loan.  I still have almost 4 years left on it at 11.44%.  My credit score has improved since I originally got my auto loan so I'm hoping that will help with getting a better rate.  Question is - what is the best way to go about this?  Should I apply directly with someone like Capital One or do something like Lending Tree to find a lender?

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Here`s a few things to keep in mind about a refi for what you are suggesting:

1. Capital One is a great buyer of re-fi notes *BUT* they WILL NOT refi if the original lender is Capital One.

2. Lending Tree - Great idea in theory, but when you enter in your info it thinks it has cart blanche permission to send it to as many lenders as possible whom will ALL each pull your credit. They send it out to 8 lenders.... You get 8 new inquiries. Lending Tree works on the theory that if you throw enough spaghetti on the wall that some of it will stick, thus they carpet bomb your app with as many lenders as they can. Lovely eh? The really bad thing is those pulls are all computer based which will either accept or deny. You re better off going to the banks yourself and submitting aps that way there is some sort of manual review and you dont get 5-10 pulls when you only really needed 3, and half of theirs usually say no because something about your ap didnt fully meet the criteria  --- Yet, the same lender would approve you if you dealt with them directly

[azguy13]

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@lajntx wrote:

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@leti wrote:

I've decided it's time to refinance my auto loan.  I still have almost 4 years left on it at 11.44%.  My credit score has improved since I originally got my auto loan so I'm hoping that will help with getting a better rate.  Question is - what is the best way to go about this?  Should I apply directly with someone like Capital One or do something like Lending Tree to find a lender?

---

Here`s a few things to keep in mind about a refi for what you are suggesting:

1. Capital One is a great buyer of re-fi notes *BUT* they WILL NOT refi if the original lender is Capital One.

2. Lending Tree - Great idea in theory, but when you enter in your info it thinks it has cart blanche permission to send it to as many lenders as possible whom will ALL each pull your credit. They send it out to 8 lenders.... You get 8 new inquiries. Lending Tree works on the theory that if you throw enough spaghetti on the wall that some of it will stick, thus they carpet bomb your app with as many lenders as they can. Lovely eh? The really bad thing is those pulls are all computer based which will either accept or deny. You re better off going to the banks yourself and submitting aps that way there is some sort of manual review and you dont get 5-10 pulls when you only really needed 3, and half of theirs usually say no because something about your ap didnt fully meet the criteria  --- Yet, the same lender would approve you if you dealt with them directly

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You are correct that lending tree does this. However, keep in mind that all auto loan/refi apps done within a 30 day window is calculated into your FICO as only 1 HP. Obviously all the pulls will show, but it will only effect your score like it was 1.

[lajntx]

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@azguy13 wrote:

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You are correct that lending tree does this. However, keep in mind that all auto loan/refi apps done within a 30 day window is calculated into your FICO as only 1 HP. Obviously all the pulls will show, but it will only effect your score like it was 1.

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True on the scoring, but lets say 8 months later you apply for an account or loan somewhere and their underwriting guidelines only allow a certain amount of inquiries within the last 12 months. Lets say lending tree gives you 6, and you accrue 3 others at different times, but the new creditor thresh hold allowance is 7. Even through your score is for 4 -- You still end up getting denied because you have 9.

Now, after all that fun and excitement you have to call in for a recon and ask yourself the following question.......

" Do I feel lucky? "