I need help refinancing my auto loan, but..

Anonymous · ‎07-29-2018

So long story short, I bought a 2014 Ford Focus Hatchback SE with 20k on 2016 at 15k with a high APR I’ll leave it at that...

I find have any credit score history so that’s the only apr I could get, but now that my scores are at 750 I finding tripuble getting it refinanced, because the value of the car is less than the loan payoff amount. And also I’m not making enough because I’m a college student, but I have NEVER missed a payment on the loan and personal finance NEVER.

I would love it for capital one to refinance my loan but I get no pre qualified offers every time I try.

So my question is do you guys have any insight on what I could do? I’m sick and tired of paying a high monthly fee for a car not worth it.. and I can’t trade it in because the loan amount is still too high..

pipeguy · ‎07-29-2018

Look for a refi offer from a credit union such as DCU or NFCU - most will offer 120% of "retail book value" (not trade in) and will offer you their best rates for a 750 FICO score. I would not use Capital One for a primary or refi auto loan. Depending on how underwater you are on the loan, you might be just stuck unless you can make up the difference in a lump sum payment, but if you are stuck with a high-interest rate and an ever increasing drop in vehicle value, that might be your best option.

Anonymous · ‎07-29-2018

for DCU do you have to be a member of the credit union? and also do they they have pre qualifications or is it a straight HP? i cant use the NFCU becuase im not in the military or navy or nobody in my family.

pipeguy · ‎07-30-2018

@Anonymous wrote:
for DCU do you have to be a member of the credit union? and also do they they have pre qualifications or is it a straight HP? i cant use the NFCU becuase im not in the military or navy or nobody in my family.

The option to refi is available through almost any credit union with various interest rates and qualifications. I mentioned DCU and NFCU because they are popular on MyFico, but there are many other CU's out there and yes you would need to "join" the CU to be approved for a loan or refi through the lending CU. You can apply for a refi through DCU and if approved, then actually join if you want the loan (this was the policy, pretty sure it still is) and yes almost anyone can join DCU or PenFed or Apple CU (etc) - there are a few such as NFCU that require specific qualifications.

As far as I know any "solid offer" come with a Hard-Pull, "pre-qualification" such as Cap-1 typically have a range of both value (loan amount) and interest rates that come with a soft pull. 9 out of 10 times large credit unions will beat large banks as far as terms and interest rates for most credit products, but terms will vary so you still need to compare loan conditions.

From your original post, it sounds like you need to get out of your current loan due to various factors (interest rates, etc), there are a lot of posts/threads on these forums showing success at refinancing vehicle loans, primarily through credit unions. You might do a search on MyFico forms for "vehicle/auto/car/etc refi" to see how others have had success getting out from subprime auto loans.

crnbread73 · ‎08-01-2018

I refi'd through DCU. Easy and painless process. Once I was approved for the refi, I had to open an account. They do give you a rate discount if you put your entire check into your account via direct deposit. I have not had any issues with DCU. In fact I just refi'd my new car with them. Their rates have beat CAP 1 everytime. They will also refi their own loans as your credit improves. Cap 1 does not do that.

pipeguy · ‎08-01-2018

@crnbread73 wrote:
I refi'd through DCU. Easy and painless process. Once I was approved for the refi, I had to open an account. They do give you a rate discount if you put your entire check into your account via direct deposit. I have not had any issues with DCU. In fact I just refi'd my new car with them. Their rates have beat CAP 1 everytime. They will also refi their own loans as your credit improves. Cap 1 does not do that.

Just to be clear, you do NOT have to put your whole paycheck into DCU via direct deposit. I direct deposit $1000 a month, my wide DD's about 60% of her check and DCU is aware of our gross income due to credit card and auto loan applications. They DO require a payroll direct deposit, but even if they say "your paycheck" they don't require 100%.

crnbread73 · ‎08-02-2018

@pipeguy wrote:
@crnbread73 wrote:
I refi'd through DCU. Easy and painless process. Once I was approved for the refi, I had to open an account. They do give you a rate discount if you put your entire check into your account via direct deposit. I have not had any issues with DCU. In fact I just refi'd my new car with them. Their rates have beat CAP 1 everytime. They will also refi their own loans as your credit improves. Cap 1 does not do that.
Just to be clear, you do NOT have to put your whole paycheck into DCU via direct deposit. I direct deposit $1000 a month, my wide DD's about 60% of her check and DCU is aware of our gross income due to credit card and auto loan applications. They DO require a payroll direct deposit, but even if they say "your paycheck" they don't require 100%.

Actually just refinanced and was told that yes you do. I had a car financed through them previously and no I didn't have to deposit the entire check but they have updated their requirements as of a month ago you do have to deposit the entire paycheck. I was disheartened by this but wasn't going to argue it.

Anonymous · ‎02-28-2019

I 2nd it's whole check. I refinaced the month before you... So I guess I was one of the first less lucky ones
Not complaining at all went from about 25 apr-2.74.
Saved 1500$ loan was 6k, got 3k visa, 1000$ quick loans pretty much anytime you want is cool if needed.
But I wouldn't touch the apply buttons once a member unless pre approved. Also watch out they hit me with 4 extra hard pulls in past year. I'm on day 22 of that dispute haven't heard back so hopefully they will be removed..

I'm curious of the date when they release next quarterly pre approval?