With very little credit history, and while I was watching my coins, Navy Fed gave me a car loan for my daughter's car for 72 months at around 9%. I took it to get my foot in the door with Navy. Now, my scores are well-established and I've had the loan for over a year and am ready to do an internal refinance with Navy for a shorter term and better rate. The application was declined. So, I waited on the letter and it said that my EQ score is 680 (auto enhanced 5, looks like). Uhhhh... what the? My reports are clean and I'm AZEO. I don't get it.
So, I sent a SM basically asking what gives? There's no way that anyone manually looked at my application and turned me down. I just don't get it. They responded that I can contact them, tell them which bureau to use and they will override the decline and manually review to see what they can do. I'll be doing that in the morning and ask them which version of each they pull to choose the best one. 680 on EQ Auto 5 looks to be the lowest but even with that, I don't think that they should have declined me.
Stay tuned. I should be able to get some data points out of this.
So I called in and the girl said that it should've been approved but it was declined because it made my payments go up, which I was aware of. So, we resubmitted the app for recon and she made notations that I'm aware that the payments go up. After all, I'm going from a 72 month to a 36 month and looking for lower interest rate.
The loan came back as a conditional approval at 6.59% (currently at 9.84%). The condition is that I respond saying that I'm aware that the payments would be higher than what I'm currently paying (about $100 per month higher).
With all the hesitancy and them stressing that it's going up, I decided to pull back and think this through. I didn't get the lowest rate (which the girl told me I prequalified for) which is 5.49 or 4.59. I can't remember offhand. Also, this would restart a new loan on my credit. So, yeah, I'm not taking that. I think I'm just going to pay the principle way down and then continue paying additional towards the principle with each payment. I could probably pay it off within a year but I'll have to see about that too. I'll need another installment loan to keep my scores up. Meantime, I'm still checking into my best options.
If anyone has any advice, my ears are wide open. I still have a few days to change my mind and accept before they officially send me another decline to close out the application.