Currently trying to refinance my high interest car loan, so I've Penfed and Bank Of America have been a no go. At the moment waiting to get an answer back from Ally Clearlane. I pre qualified with them for 7.99% APR.
Starting Score: 512
My current loan was opened January 2021 before i really started building my credit up so got hit with the subprime rate of 21% 72 month loan $504 a month with Capital One. Looks like no soup for me yet. Just trying to get refinanced with a single digit APR and lower my car payment. No offers available from Penfed or Clearlane now, denied by Bank Of America.
Unfortunately i'm not eligible to join DCU.
With the used car market up right now, i think my car would only be under water maybe $500-$1000. I have a 2015 Camry XSE V6 so it might still have some equity.
@MrFiah wrote:
@Mdowning30 wrote:My current loan was opened January 2021 before i really started building my credit up so got hit with the subprime rate of 21% 72 month loan $504 a month with Capital One. Looks like no soup for me yet. Just trying to get refinanced with a single digit APR and lower my car payment. No offers available from Penfed or Clearlane now, denied by Bank Of America.
Wow, that's a tough spot to be in. Over the course of the loan, you'll be paying almost as much in interest as the original principle. Are you upside down on the car yet? If not, might be better off just getting rid of it. I know you commented on a post of mine about how a $20,000 down payment would be better off in the stock market but this is a prime example of why I would use a big down payment. To get more favorable loan terms, avoid the high interest, being underwater and just knowing if something comes up I'm okay. Best of luck.
@MrFiah asked a very good question.
I am curious as to how you are not eligible to join DCU.
In another of your post you have, "I have a 2015 Toyota Camry XSE V6 with fairly low miles that I'm still paying off I'm happy with it ..."
Is this 2015 Toyota the very same vehicle we are discussing?
Have you researched and viewed rates of CUs local to you? If not, I think this would be a very good idea.
I believe more than half, but not all FI, especially banks look to charge a higher interest rate for older vehicles. My preference is to obtain financing from a credit union and not a bank when searching for rates concerning automobiles.
Now, back to discussing DCU eligibility. I thought DCU was still open to everyone through association with other organizations. I would revisit their list of participating organizations DCU has on its website.
- Reach Out for Schools – A non-profit membership organization that raises money to fund classrooms and programs that benefit students. Most of the funds that we raise are used to adopt classrooms through Adopt-a-Classroom and to fund projects through Donors Choose. These programs allow teachers to purchase classroom resources with donated funds. You may join this organization when you open your DCU membership.
Memberships start at $10
Reach Out for Schools, PO Box 290, Tyngsborough, MA 01879
Edit: sorry for the delayed response I thought I sent this post before turning my attention back to other things. Today is just dragging our for me... ugh!
Unfortunately out of DCU's long list of companies and localities, Im not eligible living in Miami, FL. Yes it's pertaining to the 2015 Camry. ATM in the process of finalizing with an offer from Tower Federal Credit Union.