Reply
Member
Posts: 8
Registered: ‎03-03-2012
0

how does a 18% apr jump to 26% from the same lender

I applied for Roadloans.com and was approved for 18% and 15k limit. I go to a approved roadloans dealer and find a car, a 08 jeep compass for 9k but I didnt tell him I was approved by roadloans already. Wanting to see if he can get me a better deal, he came back and said I was approved with a interest of 26%!!!! I asked by who and said satanders, the same company that ownes roadloans. So how did it jump from 18% to 26% from the same company?


Sorry if my grammer is wrong I'm typing from a phone.
New Member
Posts: 9
Registered: ‎02-21-2013
0

Re: how does a 18% apr jump to 26% from the same lender

That's why you should apply for a loan first at a local credit union instead of going to the dealership. Once they approve you for a fixed amount, its easier to negotiate with car salesmen when you already have funding. Don't use Roadloans, I applied there as well because I thought I wouldn't get approved but now I have a 8% APR loan with a local credit union and my FICO isn't great either.

Contributor
Posts: 567
Registered: ‎10-04-2012
0

Re: how does a 18% apr jump to 26% from the same lender

They aren't the same loan. The offer from Roadloans is good at the rate offered as long as your deal meets their conditions.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k

Contributor
Posts: 193
Registered: ‎04-01-2012
0

Re: how does a 18% apr jump to 26% from the same lender

Obviously that's ridiculous and I hope you laughed in the dealer's face. Dealers can add interest on top, and when he ran Roadloans he probably got around the same 18% that you did...but since it was so high he figured "ok this person likely doesn't have many approval options and doesn't understand credit well..." and took advantage of you by adding 8% on top of it. Try your local credit union first, and if they can't beat 18%, then take it and make payments for a year or so while repairing your credit (lower utilization, etc), then try to refinance lower.




Starting Score: 583 (CreditKarma, 2009)
Current Score: 783 (Walmart Free FICO, March 20, 2012), 774 (Equifax, BoA Pull, 2/20/13)
Goal Score: 800+


Take the FICO Fitness Challenge
Contributor
Posts: 567
Registered: ‎10-04-2012
0

Re: how does a 18% apr jump to 26% from the same lender


BlueHusky wrote:

Obviously that's ridiculous and I hope you laughed in the dealer's face. Dealers can add interest on top, and when he ran Roadloans he probably got around the same 18% that you did...but since it was so high he figured "ok this person likely doesn't have many approval options and doesn't understand credit well..." and took advantage of you by adding 8% on top of it. Try your local credit union first, and if they can't beat 18%, then take it and make payments for a year or so while repairing your credit (lower utilization, etc), then try to refinance lower.


OP didn't bother telling F&I that he/she already had an approved offer from RL. He let F&I fly blind hoping that they would be able to beat the rate.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k

Member
Posts: 8
Registered: ‎03-03-2012
0

Re: how does a 18% apr jump to 26% from the same lender

 
Member
Posts: 8
Registered: ‎03-03-2012
0

Re: how does a 18% apr jump to 26% from the same lender

I went back to speak to them and stated a new vehicle would get the 18% but since I'm going used its 26%. It just seems they want more money in there pocket.
Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
0

Re: how does a 18% apr jump to 26% from the same lender

Anything over 10% is a scam. Speak with credit unions ect. You are bound to be able to find something under 10%. The market is rock bottom for interest rates on secured loans. 

 

I am a first time buyer with a score under 700 and I was approved for 3% on used and 2% on new with USAA.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
New Contributor
Posts: 60
Registered: ‎02-03-2011
0

Re: how does a 18% apr jump to 26% from the same lender


Dustink wrote:

Anything over 10% is a scam. Speak with credit unions ect. You are bound to be able to find something under 10%. The market is rock bottom for interest rates on secured loans. 

 

I am a first time buyer with a score under 700 and I was approved for 3% on used and 2% on new with USAA.


Is that so?

 

Since you think 10% is such a great interest rate, why dont you set up your own finance company at a fixed 10% rate on every deal and I will send you a hundred loans a week at that rate.

 

When you have someone with two reposessions and banged up credit, 25% is a blessing.

Valued Member
Posts: 26
Registered: ‎12-07-2010
0

Re: how does a 18% apr jump to 26% from the same lender

It varies  by state, but it most states the dealer can only raise the APR by a certain maximum amount. However the problem is that to many people accept dealerships on whatever they say withouit asking for proper verification. If it aint in writing it dion't mean **bleep**.


Starting Score: EQ654(10/19/2010), EX?,TR ?
Current Score: EQ 735 9/06/14, EX 705,TR 733 9/6/14
Goal Score: 740 plus on ALL by end of 2014


Take the FICO Fitness Challenge
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.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.