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Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: Navy Federal = best decision I've made!

Congrats!  NFCU is definately where its at!

 

Just an FYI, it would be good to stop the negative equity cycle with this purchase... No more trading in negative equity vehicles... it usually puts you in a bad spot. 


Starting Score: 08/29/2011 TU 671 EQ 674
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Established Contributor
Cadillac-XTS
Posts: 1,837
Registered: ‎08-20-2012
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Re: Navy Federal = best decision I've made!

Congrats

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pwagner0176
Posts: 5
Registered: ‎04-26-2013
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Re: Navy Federal = best decision I've made!

3.5yrs out of BK and I got approved yesterday for nRewards Visa with $3k limit @ 13.99%! I'm actually quite happy despite the high interest rate (just more motivation to pay off every month or leave a very small balance). Also got a Delta Community Credit Union visa card in January, but with only $500 limit but a better interest rate. I'm done now, 2 cards is all i'll ever want or need again. I might try in January to increase the limits on both cards and try to get a lower interest rate.

 

Now, if I can just figure out a way to re-fi my upside down mortgage!! haha

Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: Navy Federal = best decision I've made!


mrslane713 wrote:

Long story short: I'm military, have horrible credit history due to wreckless spending and credit inquiry sprees. Recently my wife and I decided to trade in our jeep patriot. we had originally traded in a nissan armada and rolled over about 6k in neg. equity. to get the jeep. ended up rolling over 9k in neg. from the jeep to the new loan (2013 F150 XLT).

 

we first looked at a Chevy Sonic for 18.5k but couldn't get approved without $6000 downpayment due to the bank not wanting to finance more than 120% of the new purchase cost. that was when our salesman suggested a truck that had crazy amounts of rebates and discounts for military personnel that would basically eat up most of the negative equity.

 

told the salesman what we wanted to keep our payments at and he ran some numbers and got us within $40 of where we wanted. We ended up not going with that dealer but instead went to another dealership with quotes and explained our situation and they said that they could do even better with rebates and discounts to make our negative equity pretty much disappear to help us get out of the equity situation altogether. we ended up saying ok and they ran our credit and we were approved for a $40k loan with 6.5% interest rate through Navy Federal! (i know 6.5 is still really high but believe it or not it's one of the lowest rates we've ever had on an auto loan and it's almost double the financed amount of any other auto loan we've had)

 

So needless to say Navy Federal came through for us in the auto loan dept.

 

THEN....

 

We decided to apply for a credit card (goRewards Visa with my wife as an authorized user and not a co applicant) for balance transfer purposes because we had heard about their decent interest rates and amounts which meant we could transfer the balances and close our outrageously high rate cards.

 

BAM, approved. Highest interest rate i think they have at prime plus 13.74% but it's still our lowest interest rate card and one of our highest limit. Limit of $4500 :smileyhappy:

 

Also applied for the OD Line of Credit in case of emergencies and approved.

 

Navy Federal is definitely going to keep my business for years to come!

 

 


CONGRATS!!!!

 

Very awesome!




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Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
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Re: Navy Federal = best decision I've made!

First of all thank you for your service to our country.  

 

Second, CONGRATULATIONS!!!!

 

Third, Yes NFCU is THEE BEST!


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Established Contributor
ibmrad7
Posts: 656
Registered: ‎12-11-2010
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Re: Navy Federal = best decision I've made!

Just an FYI, it would be good to stop the negative equity cycle with this purchase... No more trading in negative equity vehicles... it usually puts you in a bad spot.

Congrats!!!!!!
Please follow webhopper's advice, you will be deep trouble if you keep rolling negative equity.

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Dustink
Posts: 2,980
Registered: ‎10-02-2012
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Re: Navy Federal = best decision I've made!

[ Edited ]

+1 to stopping the negative equity cycle.

 

You can't and NFCU shouldn't look at this deal as paying a fair price for the vehicle with the negative equity. You are not out of the negative equity situation. Those incentives are part of the fair market value of the vehicle. The current fair market value is ~$23k for a 2WD XLT and ~$27 for a 4WD XLT.

 

Then start subtracting depreciation (~$9k year 1, then ~$2k per year after that) and you will see your future value. So, you can see how hard it is to create equity with a loan of $40k on a vehicle that will be worth sub $20k next year. This creates a cycle of more and more negative equity. 

 

Stop the cycle by paying significantly more than the minimum payment on the vehicle. It would take roughly $1,500 per month to get into equity within a year.

 

From your post, it looks like you were buying a vehicle based on the monthly payment. A "low" monthly payment is your enemy on a car purchase. That just means you are getting into a much longer term than you should. A longer term (over 60 month's) generally carries a higher interest rate. To "save" a bit each month, you are wasting thousands of dollars on interest charges. 

 

Get this loan paid down to match the market value of the vehicle, then refi into a short term-low rate loan.

 

Congrats on the new vehicle and best wishes to you in getting it paid down.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


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Established Contributor
ibmrad7
Posts: 656
Registered: ‎12-11-2010
0

Re: Navy Federal = best decision I've made!

@dustink you nailed it.
OP please follow his advice to the T or plan on keeping this vehicle for next 5 years

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Cageym
Posts: 507
Registered: ‎07-31-2012
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Re: Navy Federal = best decision I've made!


Dustink wrote:

+1 to stopping the negative equity cycle.

 

You can't and NFCU shouldn't look at this deal as paying a fair price for the vehicle with the negative equity. You, you are not out of the negative quity situation. Those incentives are part of the fair market value of the vehicle. The current fair market value is ~$23k for a 2WD XLT and ~$27 for a 4WD XLT.

 

Then start subtracting depreciation (~$9k year 1, then ~$2k per year after that) and you will see your future value. So, you can see how hard it is to create equity with a loan of $40k on a vehicle that will be worth sub $20k next year. This creates a cycle of more and more negative equity. 

 

Stop the cycle by paying significantly more than the minimum payment on the vehicle. It would take roughly $1,500 per month to get into equity within a year.

 

From your post, it looks like you were buying a vehicle based on the monthly payment. A "low" monthly payment is your enemy on a car purchase. That just means you are getting into a much longer term than you should. A longer term (over 60 month's) generally carries a higher interest rate. To "save" a bit each month, you are wasting thousands of dollars on interest charges. 

 

Get this loan paid down to match the market value of the vehicle, then refi into a short term-low rate loan.

 

Congrats on the new vehicle and best wishes to you in getting it paid down.


+1 on this. My current vehicle, soon to be replaced, is a 1998 Chevy Z-71 that I've owned for 9 years. My trade in value is only about $3k because of the age but since I've had it so long, and it's been paid off forever, I'll be able to put down 10k on my new vehicle and finance about $31k, keeping my payments below $600, and I will pay more than that to pay it off early. BTW, I got a 1.79% 60 month from NFCU.


What's in my wallet: Cap1 Venture $10K NFCU Sig Visa $25k Amex Zync NPSL Delta Gold $18k BCE $2k Citi Simplicity $5450 Priority Select Visa 5.9K Amazon Visa 4k CSP 5k
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Current Score: 6/20/2013 TU 800 6/20/2013 EQ 770 6/20/2013 EX 775
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Frequent Contributor
CreditJunkie917
Posts: 403
Registered: ‎01-08-2013
0

Re: Navy Federal = best decision I've made!

BigDaddy, I've been with NFCU for a little over a month, active duty, rebuilding my credit (FICO EQ 643, TU 637, FAKO EX(QUIZZLE) 641...cash rewards $5k, auto loan 48mo@5.29%...have Deployment savings acct, with joint savings and checking with the wife...don't need to have the greatest scores, or the cleanest history to get the love from them. I'm living proof!!!
Amex Plat.(NPSL) Amex PRG(NPSL), Amex BCE($6K), Amex Hilton($1K), NavCheck ($15K), NFCU CR Siggy($16.6K), USAA Amex($7K), USAA World MC($7K), CSP($5K), Chase Marriott($5K), Care Credit($2.5K), Cap1 QS($3.5K), VS($500), Cap1 Secure($200)
Starting Scores(Jan 2013): FICO EQ: 643, TU: 552, EX: 567
Current Scores(October 8, 2014): FICO EQ: 679, TU: 703, EX: 696
In the Garden FOR-EV-ER!!!!! Cards and goals achieved! Let's grow and mature these babies!!!




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