Credit Union Auto Refinance

WJL · ‎09-02-2010

Hi team, this is my first post!

I bought a new Murano in Nov 2007 with a 12.61% APR with CapitalOne, which I knew was high, but had to accept due to my low credit score at that time (cannot remember anymore but it was either high 500/low 600); also, the credit crunch didn't help either. I just reached 701 last month and at 0% credit utilization as of this week. I have about $25,000 left for my auto balance and also another $38,000 in student loans (sigh). Anyways, I was reading about how credit unions can offer lower APR rates and was wondering if anybody had gone through this process and wouldn't mind sharing their experiences? How strict are CUs with offering you a good rate in terms of your credit standing? What kind of impact, if any, does refinancing with a CU have on your credit standing? Any reason not to go with a CU? Any insights would be greatly appreciated! Thank you for your time!

Creditaddict · ‎09-03-2010

CU unions is a great way to go and tend to be a little more forgiving with stuff in the past... However since your scores are really good, check out USbank, thye have been offering a 3.9 refinance rate as of last I saw, my credit union can't even beat that.

Anonymous · ‎09-03-2010

PenFed CU is offering 2.99% if your score is at least 680. I just became a member. I live in GA, but the CU is not anywhere in my state. I just opened an account with them last month to take advantage of refi auto (I pretty much have the same deal going on as you).

You have to work for the government in some capacity (state, local, or federal) or give like $20 to one of their military organizations to become a member. I was able to transfer a very small amount $10 to a savings account with them to open an account. It was really easy. You can get an ATM card to get money out if you don't live near one of their branches. They have ATM's very close to me.

Good luck!

WJL · ‎09-06-2010

Thank you very much to both! I will definitely look into your suggestions and hope to refinance into a better deal!

WJL · ‎09-06-2010

Hi - quick follow up question for you please. When you got your refinancing done, were you offered a lower payment as well or just a lower APR? I also have two car loans under my name. Is it a good idea to use one CU (like the one you mentioned) to refinance both loans or should I consider using two different CUs? Thank you again!

Creditaddict · ‎09-06-2010

@WJL wrote:
Hi - quick follow up question for you please. When you got your refinancing done, were you offered a lower payment as well or just a lower APR? I also have two car loans under my name. Is it a good idea to use one CU (like the one you mentioned) to refinance both loans or should I consider using two different CUs? Thank you again!

If your interest rate goes down, so will your payment... but if at all possible I would shorten the new term otherwise say you have been paying for 12 months on a 60 month term and you refinance for a new rate but you finance it again for 60 months, you are going to loose the benefits of saving interest by paying a whole year longer.

If you qualify with the credit union for both loans, why not just stick with one place

Anonymous · ‎09-06-2010

I haven't applied for refinance yet. I'm waiting for one of my credit cards to report a zero balance. My utilization is currently 17%, but once this card reports it'll be about 4%. I forgot to mention that PenFed likes low card utilization also. Also heard, they don't care too much for inquiries (2 years worth). I have quite a few from the auto purchase last year, buying a home this year, and going a little app crazy with GEMB cards (Lowes, Walmart, JCPenney's) to decorate house and yard.

I think the card I'm waiting to report did so today because I just got a statement notification from them. I will apply with PenFed as soon as I see the lower utilization on my Equifax credit report. I can report back and let everyone know what PenFed says. Also, the 2.99% is only for online applications and the auto has to be less than 100K.

Anonymous · ‎09-06-2010

I meant the auto has to have less than 100K miles on it.

WJL · ‎09-06-2010

Understood. Thank you to both again! I can also share my experiences once I go through the refinance process. Good luck to you as well!

WJL · ‎09-23-2010

Just wanted to share the good news that I got approved by PenFed! I learned a lot during this process and couldn't have done it without your advice and suggestions! Thank you!