@Anonymous wrote:
We have a short sale that is 5 years old. I have 4 30-day lates on my current car loan. I think we have that sorted out going forward. I might ask for forgivness on the last one back in Dec., since we paid on their website 2 days before the 30 days, but it didn't get counted until after. Not expecting anything there from WFDS, but who knows. Yes, I need car fast. Public transit can take 2.5 hours to get me to work (one way). I hope we can purchase and refinance when my score improves. I just opened an account with NFCU, so I will apply there and with Patelco. When I refinance, I'll have to move the loan, right? Would a credit union re-fi their own loan? Also, I heard that paying the $120 won't help my scores at all, so I wasn't going to bother, especially if it just extends the reporting period. If it would gain me 5 points, I would pay it immediately and try to get experian to update the info before I do the loan apps.
Paying the collection will not extend the reporting period, it reports from the date of first delinquency. The only time they can reset that date is if you made a partial payment and then became delinquent again. Those 30 day lates on your auto loans will be a factor but like any late they diminish with age. Most lenders do not refinance their own car loans but DCU actually does, NFCU does not. If you need a car loan asap then get the best loan you can from a credit union or even a subprime lender and then work your rebuild on scores so you can refinance a few months down the line. Those 30 day lates will diminsh at the 1 year mark and effectively have no impact at the 2 year mark. On the WFDS late that you want to get removed, they won't do it for you voluntary (been there). I would dispute that late with all three credit agencies and then if they refuse to remove it still file a complaint with the consumer financal protection buereu (CFPB). I have found the CFPB to be very effective, lenders don't want to risk their wrath so they are quick to remove anything that is even close to borderline but you will need to dispute the regular route first to have a strong enough complaint to get their attention. I can't guarentee that paying the collection will get you 5 points but I can guarentee it won't hurt you at all to resolve it and having no open collections is a good thing. To me it would be well worth the 120 bucks but that is a call you have to make.
If you have to take a loan that is not ideal with the idea of refinancing you want to make sure your loan to value is around 100% or less if possible to give you the best chances of refinancing, if its a new car 120% will be ok. We see a fair number of folks here that get stuck with high interest loans because they have too much negative equity to refinance, negotiating a good price, avoiding any add ons like extended warranties and putting some money down are all good ways to ensure you can preserve a acceptable loan to value ratio.
