Capital One Auto

[Anonymous]

Hi guys! So we were advised by our bankruptcy lawyer to purchase hubby a car before we proceed. His car literally was dying and needed a rebuild of the engine. So he found a fantastic vehicle with 31k for miles and I think the actual price ended up being 9.2k give or take a little. I'll know more later when we pick it up and receive the actual paperwork.

We could only get financing through Cap One. His interest rate is pretty steep I believe it's either 12 or 14%. I will mention he has 2 prior repos for about 13k total. Anyways, the lowest term they would allow was 48 mos, we were originally hoping for 24-36. So instead we opted for 66 months as it had the lowest payment obviously which allows us to double the payment. My question is, does cap one have a penalty if we do that? 

[Anonymous]

No, just communicate with them to make sure it is properly applied to the principal and not next months payment ie: Santander, Chrysler Capital. 

[Anonymous]

Congrats on the purchase also. 

[sccredit]

You should be good to pay extra and pay it off faster. There are no prepay penalties and you can put more towards principal. Congrats on the purchase. 

[Anonymous]

Thank you. 

[Anonymous]

Oh boy. Will we have to do that every month? I intended on making a double payment every month. At the moment, I cannot even find his account. Nor have we received any paperwork other than the typical bill of sale and such. We did buy the vehicle out of state and they said everything has to be mailed?! 

[bigred1967]

I wish the prequalify would show me something post discharge here. But no love for me as of yet🤔

[sxa001]

I had a Capital One Auto Finance Loan in 2013, similar situation to the OP, I was rebuilding and my credit wasn't all that good and I had a terrible interest rate (think it was right around 12%). Capital One first applies any payments to the interest that has accrued since the last payment and the rest goes towards your loan balance or principal.  Making a bigger payment each month should be no problem, if you are going to pay multiple payments a month you would probably want to call and make sure they put it towards the principal. Since they allow up to 3 months in advance, they would likely just put extra payments as regular payments. 

https://www.capitalone.com/auto-financing/faq

[Anonymous]

SXA,

I have a Cap 1 auto loan as well and was curious how long it took your score to climb after getting the loan? I'm at about 7 months right now and still waiting for some positive increases from this installment loan. I am assuming after 12 months.

And it's actually easy to split up the payments with them. You have an option to make a payment that goes straight to the principle of the loan. Pretty heavy on the interest in the beggining of the loan though thats for sure. 

Thanks in advance. 

[sxa001]

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@Anonymous wrote:

SXA,

I have a Cap 1 auto loan as well and was curious how long it took your score to climb after getting the loan?

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I wasn't paying enough attention back then to my scores, I also had other debts I was working on so I can't really provide any datapoints on that one.