want to re-fi with NFCU

mt2va · ‎05-29-2009

Short version. Had credit issues. Have a lot of them cleared up. Still have a few charge-off's. My best CR is EQ. I am a member of NFCU & recently approved for 2 CC with them. I have a car loan with 21% interest I want to re-fi with them. My payment history on car loans is perfect. (2 previous auto loans paid on time every month & both paid off early & current auto loan on time)

I know that they manually review credit apps to determine approval. Does anyone know if they would accept a letter from my landlord stating that I pay my rent on time every month? (been at the same place for almost 13 years now) Would this help me out any? My EQ is currently just under 600 & I plan to wait a couple more months to apply & let the 2 new CC report (which will lower my utilization considerably)

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
(7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)

Current (2016): EQ 605 (FICO)/TU 657 (FICO)/EX 646 (FICO)

moondog7324 · ‎05-29-2009

When I re-fied w/ NFCU they were more concerned with income. What bump you get for better util may be offset somewhat by AAoA and inquiries. Look into bi-weekly payments with NFCU- they've got a great loan calculator on the website. Are you upside down on the loan? That may be a factor- or might request you get GAP.

Message Edited by moondog7324 on 05-29-2009 03:11 PM

mt2va · ‎05-30-2009

Well not much I can do to change my income. I doubt I'm upside down as I just bought the car in December & its worth about $4,000 more than we paid for it. I bought GAP insurance when I bought it.

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
(7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)

Current (2016): EQ 605 (FICO)/TU 657 (FICO)/EX 646 (FICO)

Anonymous · ‎05-31-2009

@mt2va wrote:
Short version. Had credit issues. Have a lot of them cleared up. Still have a few charge-off's. My best CR is EQ. I am a member of NFCU & recently approved for 2 CC with them. I have a car loan with 21% interest I want to re-fi with them. My payment history on car loans is perfect. (2 previous auto loans paid on time every month & both paid off early & current auto loan on time)

I know that they manually review credit apps to determine approval. Does anyone know if they would accept a letter from my landlord stating that I pay my rent on time every month? (been at the same place for almost 13 years now) Would this help me out any? My EQ is currently just under 600 & I plan to wait a couple more months to apply & let the 2 new CC report (which will lower my utilization considerably)

Lets see:

1- you recently got approved with 2 ccs with NFCU- OK Maybe you should hold off for 6 months or so so you can show a track record with those before trying for another loan- although to be honest if you could cut your interest rate in half you would probably save more then a hundred a month.

2-NFCU only manually reviews apps that fit a certain "questionable" criteria. Most people can get online approval. That all yours have been manual approvals shows that yes you are recovering from bad credit situations and NFCU might work with you.

3-The 21% interest rate may keep the car value/amount owed too high or skewed for a refi. I think you should be able to do it, but you may have to do an online ap, then when they call for verification go that route.

mt2va · ‎06-03-2009

@Anonymous wrote:
Lets see:

1- you recently got approved with 2 ccs with NFCU- OK Maybe you should hold off for 6 months or so so you can show a track record with those before trying for another loan- although to be honest if you could cut your interest rate in half you would probably save more then a hundred a month.
That's kind of what I thought but I hated to wait another 6 months of paying a higher rate plus run into the risk of heading towards upside down.

2-NFCU only manually reviews apps that fit a certain "questionable" criteria. Most people can get online approval. That all yours have been manual approvals shows that yes you are recovering from bad credit situations and NFCU might work with you.
Well then I guess it has been in my favor that I have been manually reviewed.

3-The 21% interest rate may keep the car value/amount owed too high or skewed for a refi. I think you should be able to do it, but you may have to do an online ap, then when they call for verification go that route.
I think if I re-fi soon it won't be too bad. In fact one benefit to my horrible credit is the dealer had to outright knock $4,000 off the price of the vehicle to get me financed initially so I paid considerably less than KBB. And while my interest rate is pretty high currently approximately $150/month is going towards the principal so I feel like if I can re-fi by say the end of the year then hopefully I won't be upside down.

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
(7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)

Current (2016): EQ 605 (FICO)/TU 657 (FICO)/EX 646 (FICO)

Anonymous · ‎06-03-2009

@mt2va wrote:
Short version. Had credit issues. Have a lot of them cleared up. Still have a few charge-off's. My best CR is EQ. I am a member of NFCU & recently approved for 2 CC with them. I have a car loan with 21% interest I want to re-fi with them. My payment history on car loans is perfect. (2 previous auto loans paid on time every month & both paid off early & current auto loan on time)

I know that they manually review credit apps to determine approval. Does anyone know if they would accept a letter from my landlord stating that I pay my rent on time every month? (been at the same place for almost 13 years now) Would this help me out any? My EQ is currently just under 600 & I plan to wait a couple more months to apply & let the 2 new CC report (which will lower my utilization considerably)

It only costs you 1 inquiry to find out. If they approved you for 2 cc's (unsecured debt) then you stand a reasonable chance that they will refi if the value of the car is in line with loan amount and your income justifies.

An auto loan, to the CU, is viewed differently than cc's. CC's is new debt and potential unsecured risk. A refi is existing debt being restructured, so I think that you will actually stand a good chance.

What is the loan balance you want to refi? What is the KBB? What is your income? What is your DTI?

mt2va · ‎06-03-2009

@Anonymous wrote:
It only costs you 1 inquiry to find out. If they approved you for 2 cc's (unsecured debt) then you stand a reasonable chance that they will refi if the value of the car is in line with loan amount and your income justifies.

An auto loan, to the CU, is viewed differently than cc's. CC's is new debt and potential unsecured risk. A refi is existing debt being restructured, so I think that you will actually stand a good chance.

What is the loan balance you want to refi? What is the KBB? What is your income? What is your DTI?

I guess I thought it might be good if I at least made 1 or 2 payments on the CC first so they can see that I plan to pay them reponsibly.

The balance is about $14,000. KBB was around $18,000 when we looked it up 4 months ago. My income is $33,400. I'm not sure which debts I need to calculate to arrive at my DTI but I imagine it is fairly high. I guess I never thought that might be an issue. I figured if I was approved for my current auto loan at 21% interest which makes my payment $368.XX per month then I would stand a chance at being approved for much lower interest rate which would give me a lower payment. My rent is $386 per month & other than utilities I have $36 due on student loans & then the 2 CC I have to pay $20 each on if I have any balance on them. One has $0 balance currently & the other is about $85 but will be paid off by the end of the month.

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
(7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)

Current (2016): EQ 605 (FICO)/TU 657 (FICO)/EX 646 (FICO)

Anonymous · ‎07-25-2009

@mt2va wrote:
Short version. Had credit issues. Have a lot of them cleared up. Still have a few charge-off's. My best CR is EQ. I am a member of NFCU & recently approved for 2 CC with them. I have a car loan with 21% interest I want to re-fi with them. My payment history on car loans is perfect. (2 previous auto loans paid on time every month & both paid off early & current auto loan on time)

I know that they manually review credit apps to determine approval. Does anyone know if they would accept a letter from my landlord stating that I pay my rent on time every month? (been at the same place for almost 13 years now) Would this help me out any? My EQ is currently just under 600 & I plan to wait a couple more months to apply & let the 2 new CC report (which will lower my utilization considerably)

I am a member of NFCU and I was just denied a credit card on 7/7/09. My EQ is 654. I wish I knew what you did the get two CC with them. Anyways good luck with the re-fi.