topic Re: Suggestions for refinance needed in Auto Loans

Suggestions for refinance needed

Anonymous — Tue, 23 Aug 2016 17:06:17 GMT

Hi all! I usually hang out in CC forum but I have a situation I was hoping to get some feedback on. My partner is new to credit. I was pretty surprised to find out he had nothing to his name and didn't know anything about credit. In the last two years, he's gotten 2 cards for himself and I've added him as an AU on one of mine. Last year he had to purchase a car. He has an unbelievably ridiculous rate from Santander (the only ones who would finance at the time). He has a thin file and his income on his own is fairly low (18k a year). His score is 660 but given his lack of history and income, can he refinance? If so, where is it most likely possible? If not, should I bite the bullet and help him out getting a new loan? Or would he be better off trading in and getting something else on new loan with better terms? He's not underwater and owes about 9500 on the car. Any help would be appreciated. Thanks!

Re: Suggestions for refinance needed

Anonymous — Tue, 23 Aug 2016 22:15:34 GMT

Check the Capital One Auto Lending site and see if your home state is one of their "pre-approval" states... for some states, they are offering soft-pull preapprovals (the same kind they will do in any state on a new car loan). He can enter his information, including payoff amount, and they will give him an interest rate quote, with no impact on his credit. This would tell him if he is in a better position, credit-wise, or not yet, without incurring a pull on his record. If it's a good offer, take it - I can tell you from recent experieince that is is a very painless and almost paperless process - and if not, then just don't accept it and try again later or try your credit union, or whatever. He's already doing business with one of the sharkiest of the sharks in the industry, so he certainly can't do worse...

I would personally not cosign, regardless of the stability or commitment of an interpersonal relationship, just because sometimes life happens - to one or the other of you, if not both at once - and you may need to not be tied to this loan if you guys suddenly need a new lease/mortgage, or you yoursel fneed a new loan, or there is a career shift, or whatever.

Re: Suggestions for refinance needed

Anonymous — Tue, 23 Aug 2016 22:42:49 GMT

@Anonymous wrote:
Hi all! I usually hang out in CC forum but I have a situation I was hoping to get some feedback on. My partner is new to credit. I was pretty surprised to find out he had nothing to his name and didn't know anything about credit. In the last two years, he's gotten 2 cards for himself and I've added him as an AU on one of mine. Last year he had to purchase a car. He has an unbelievably ridiculous rate from Santander (the only ones who would finance at the time). He has a thin file and his income on his own is fairly low (18k a year). His score is 660 but given his lack of history and income, can he refinance? If so, where is it most likely possible? If not, should I bite the bullet and help him out getting a new loan? Or would he be better off trading in and getting something else on new loan with better terms? He's not underwater and owes about 9500 on the car. Any help would be appreciated. Thanks!

Contingent on year and miles of the car ... he can refinance etc.

Please check out Digital Credit Union aka DCU and Alliant Credit Union... maybe even PenFed.

But I suggest for them to call in as opposed to app'ing on line.

Try to avoid cosigning ...

Keep us posted.

Re: Suggestions for refinance needed

Anonymous — Wed, 24 Aug 2016 14:03:17 GMT

Thanks for the advice all. Will look into the suggestions.

Re: Suggestions for refinance needed

sccredit — Wed, 24 Aug 2016 14:34:26 GMT

x2 on DCU. Though I am not sure what minimum income requirements are.

Re: Suggestions for refinance needed

Anonymous — Thu, 25 Aug 2016 01:23:24 GMT

@sccredit wrote:
x2 on DCU. Though I am not sure what minimum income requirements are.

They approved my nephew just out of HS and no score.

He needs 20% down .. we may be able to work around that .. but the rate was good for a boy with no credit.

This is DCU mind you.

Ill come back and let you know what PenFed does.

But I would be interested in hearing the results.

Also by the way .. check Navy Fed because I have seen approvals with lower scores.

Please keep us in the loop!