Auto Refinance Help

[Anonymous]

Hello everyone,

I've been lurking around the forums for about a month now and finally have decided to make a post. I will try to be as detailed as possible. Hopfeully I can get some guidance from the community. I bought my first vehicle in October 2013 (2014 Corolla S) through Toyota Financial with an interest rate of 17.5% over 5 years (I know....horrible). The loan was about 19k with payments at $500.00 even. At the time I applied for the loan i knew my credit was horrible (around 560 EQ FAKO)... but I needed a new car. I have never missed a payment, always pay early, but I have 3 small negative accounts on my report from Sprint about 4 years ago (I had family member's phones in my name) One is around $90, another $110, and the last is much less. I honestly don't know if paying these off would help or hurt my score, with the accounts being so old. I have 3 open credit cards through Capital One (1 secured: 500, 1 quicksilverone: 500, and a mastercard platinum: 500) All cards have a 4% util. The secured card i've had since August 2014, and the 2 newer cards i've had since January 2015.  I am desperately needing to refinance my car loan, as $500 is very high to me. I just paid for an EQ FICO report and it's showing me 638 as of today. My TU FAKO (Credit Karma) is showing 666 and EQ FAKO (Credit Karma) is showing 625 (as of today also). I also tried applying through Capital One for an auto refiance, but sadly was denied (I don't think they do recons). I was a little shocked seeing as they approved me for 3 credit cards, but could not approve me for an auto loan with my excellent payment history. This pretty much sums up my credit history and the current struggle i'm dealing with. I see that my EQ FICO is "Fair", but I don't know if fair would qualify for a refinance. The vehicle mileage is currently at 20,050 and the loan amount is $16,250. Any help would be greatly appreciated.

Thank you!

-Corey

[Deltadog03]

My *guess* as of now just looking at this briefly would be that there is too much NEG equity in the current loan?  What did they tell you for the reason for denial?  

[Anonymous]

They didn't give me a reason for the denial (yet..)  I'm assuming they will mail the denial letter with the reasoning.

[SamsungHDTV]

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@Anonymous wrote:

They didn't give me a reason for the denial (yet..)  I'm assuming they will mail the denial letter with the reasoning.

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The denial letter will tell you what you need to know. If it is because your LTV is too high then you will need to bring cash to make principle payment until the LTV is at a better range. If the denial is based on credit then you can try a CU.

[Anonymous]

I'll try a credit union. Hopefully I can get somewhere with them. What about the negative accounts on my report? What should I do with them? I can easily pay them off, but would it hurt me paying off such old accounts?

[SamsungHDTV]

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@Anonymous wrote:
I'll try a credit union. Hopefully I can get somewhere with them. What about the negative accounts on my report? What should I do with them? I can easily pay them off, but would it hurt me paying off such old accounts?

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It will help if anything. But I don't know how much it will help. If you do want to pay it I would suggest you try to negotiate a PFD. You can find help regarding PFDs in the rebuliding section of the forums.

[Anonymous]

Ah ok then! This is so stressful, but in the last 6 months I've got my FICO up over 100 points. Hopefully it continues to climb!

[Anonymous]

Try DCU!

[Anonymous]

Ok guys so I did end up getting declined for a refinance by a local credit union in Austin TX and also Wells Fargo. My FICO was 638 which was a huge increase from the prior year, but those negatives are just screwing up everything... I decided to take the money out of my savings, gave sprint financial services al call, and I paid for all the collections showing on my credit report(all through sprint). The woman over the phone confirmed that they should all be pulled back from the CA and removed from my report in 30 days or less. 2 days prior I also mailed out 2 certified DV and PFD letters to the CA. By the time the CA receives the documents they'll probably request debt verification from sprint (which will show paid)... Hopefully I sped things up? This is killing me! I dont want to pay these ridiculous car payments (love my car though!)

Thanks all! Will follow up!

[guydiver]

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@Anonymous wrote:
Ok guys so I did end up getting declined for a refinance by a local credit union in Austin TX and also Wells Fargo. My FICO was 638 which was a huge increase from the prior year, but those negatives are just screwing up everything... I decided to take the money out of my savings, gave sprint financial services al call, and I paid for all the collections showing on my credit report(all through sprint). The woman over the phone confirmed that they should all be pulled back from the CA and removed from my report in 30 days or less. 2 days prior I also mailed out 2 certified DV and PFD letters to the CA. By the time the CA receives the documents they'll probably request debt verification from sprint (which will show paid)... Hopefully I sped things up? This is killing me! I dont want to pay these ridiculous car payments (love my car though!)

Thanks all! Will follow up!

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Sounds to me like you're on the right road.  Worst that could happen is the collections remain and show "PAID".  Won't help your Fico, but it will help a manual review because some places just will not finance with unpaid collections reporting.  I think you did the best thing though.  Good Karma will follow.