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i NEED HELP WITH AUTO LOAN REFINANCING!

Established Member

i NEED HELP WITH AUTO LOAN REFINANCING!

Hello,

 

I have been nursing my credit back to good health for a year now. My credit history is only 5 yrs. My credit went downhill while I was deployed to Iraq in 2008. I lost my debit card and I forgot to contact my creditors.  I started at 541 a year to date. I am at a 671. I have an auto loan from carfinance.com. My credit score was 541. They were my only choice at the time. My monthly payment is 389 and with a 13.5 interest rate. It is killing me. I hate to see majority of my money go to interest. 

 

1. Can I get a better rate with a 671 credit score?

2. Which company will refinance my loan?

 

Please help me!

 


Starting Score: 54101/12/2013>641
Current Score: 671
Goal Score: 700


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Message 1 of 5
4 REPLIES
Established Contributor

Re: i NEED HELP WITH AUTO LOAN REFINANCING!


basilatkinson wrote:

Hello,

 

I have been nursing my credit back to good health for a year now. My credit history is only 5 yrs. My credit went downhill while I was deployed to Iraq in 2008. I lost my debit card and I forgot to contact my creditors.  I started at 541 a year to date. I am at a 671. I have an auto loan from carfinance.com. My credit score was 541. They were my only choice at the time. My monthly payment is 389 and with a 13.5 interest rate. It is killing me. I hate to see majority of my money go to interest. 

 

1. Can I get a better rate with a 671 credit score?

2. Which company will refinance my loan?

 

Please help me!

 


671 is a fair credit score, and there should be some companies willing to refinance you. But will they refinance your loan? Depends on the vehicle.

 

For instance, Chase has requirements on its auto loan: The vehicle has to be no older than 5 years, and less than 75K miles. Other banks have less more relaxed stipulations like I think capital one is 7 years/ 100k miles. 

 

But in any case, I think your best bet is credit unions. They will actually take the time to ask, "why did your credit go downhill at that time?" And you have a perfectly reasonable explanation. You were deployed to Iraq. Tell anyone who asks and offer proof of deployment. You should also reach out to your old creditors and see if they are willing to forgive old debts or even remove derogatory items from your credit report. Send out GW letters and include proof of deployment. I know Chase Bank has a military hotline for these types of purposes.

Message 2 of 5
Valued Contributor

Re: i NEED HELP WITH AUTO LOAN REFINANCING!

An immediate aid before a refi would be to pay more than the minimum. Anything above the minimum goes straight to principle. So, large payments will cause you to pay much less in interest.

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Message 3 of 5
Moderator Emeritus

Re: i NEED HELP WITH AUTO LOAN REFINANCING!

Get signed up with usaa and NFCU if you can!

They have competitive rates for members. Being a veteran allows you some leniency in underwriting with USAA.

Are you still active duty?


Starting Score: 08/29/2011 TU 671 EQ 674
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Message 4 of 5
Regular Contributor

Re: i NEED HELP WITH AUTO LOAN REFINANCING!

I just refinanced with a credit union.   Loan interest rate went from 16.4% to 2.9%.   Savings of $145 per month.    

I used RateGenius . com.   The process took less than 6 hours.

 

Being in armed services, you could probably go to USAA direct.   My friend uses them and they have a very low auto rate and says that their service reps are excellent.

 

Message 5 of 5