Openroad lending - Why was I denied

[johnnypinaz]

Trying to refinance my Bridecrest Auto Loan over 1 year with perfect payments. Loan was around 25% I believe. I got Prequalified through OpenRoad and tried to get the refinance loan.  Here is what they send me..

"Equifax.
Your Credit Score: 764
Date: 7/30/2021

Scores range from a low 250 to high 843.

Key factors that adversely affected your credit score:

• Length of time accounts have been established
• Length of time revolving accounts have been established
• Time since most recent account opening is too short
• Too many inquiries last 12 months".

My credit is 764. I have over 8 years on established accounts including rotating. I have 4 inquiries but 3 of them are due to trying to refinance this car. Also, I only owe 10,300 on the car which is worth about 22K in the condition it is in and miles..

So none of it makes sense to me.

Now I have these inquiries which I never would have taken if I wasnt "prequalified".

Any ideas what I can do, or should I just move on. Refinancing would save me about $8K and substantially lower my payment from $325 to around $200.

[CH-7-Mission-Accomplished]

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@johnnypinaz wrote:

Trying to refinance my Bridecrest Auto Loan over 1 year with perfect payments. Loan was around 25% I believe. I got Prequalified through OpenRoad and tried to get the refinance loan.  Here is what they send me..

"Equifax.
Your Credit Score: 764
Date: 7/30/2021

Scores range from a low 250 to high 843.

Key factors that adversely affected your credit score:

• Length of time accounts have been established
• Length of time revolving accounts have been established
• Time since most recent account opening is too short
• Too many inquiries last 12 months".

My credit is 764. I have over 8 years on established accounts including rotating. I have 4 inquiries but 3 of them are due to trying to refinance this car. Also, I only owe 10,300 on the car which is worth about 22K in the condition it is in and miles..

So none of it makes sense to me.

Now I have these inquiries which I never would have taken if I wasnt "prequalified".

Any ideas what I can do, or should I just move on. Refinancing would save me about $8K and substantially lower my payment from $325 to around $200.

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Something doesn't make sense here.   You should easily get approved with a credit union unless there are other problems.   What is your gross monthly income?    Are you a W-2 employee?   OpenRoad is a subprime lender.   Assuming everything else is okay you should easily qualify with DCU, Penfed, Alliant, Navy and/or BECU credit unions, and just about any other credit union you can join.  What is your average age of accounts?   What are your FICO 8 and FICO 9 scores for each of the three major credit bureaus?

[johnnypinaz]

I make 10K salary a month and then an extra $10K a year in some side work (verifiable) I do. But they dont even get that far to check it.

I do have a dismissed BK that only shows up on Experian from 2017. 

My scored ar TU 685, Exp 695, EQ 765.

I believe that is FICO 8. I havent checked FICO 9.

My scores were below 500 just 2 years ago and I got a car loan and a credit card with perfect payments which is why its up higher now.

Alot of old stuff dropped off too.

My average age of accounts is a little under 2 years.

I got my Chex systems all cleaned up from the past so I can get a credit union now. I will look at those.

[barca]

@johnnypinaz  - have you tried capital one auto navigator.

it is a soft pull and will give you rates and max loan amount.

The prequalification is almost 100% solid. (i.e whatever you are prequalified for will be your final approval - provided your info is correct)

[johnnypinaz]

No.. but thank you! Ill try them. They just approved and sent me a credit card 2 weeks ago. Ill let you know how it goes. 

[johnnypinaz]

So I tried this.. They would no refinance me but did prequalify me up tp $50k on a car. Strange.. Ill try calling them and see if they could push throught the refinance.

Thanks for the info on this.

[Anonymous]

You should try with credit union.

[Dj4Money]

 Not strange at all if you are upside-down with the car you currently have and to cover it with a refi takes you over 120% of it's value. 

 That makes total sense they won't refi that car but offer you a loan for a new/used car. I would trade-in whatever you got for 25% interest it can't be that special and get the overinflated retail trade-in value for it and get something you want, which I would think is possible with a $50K loan. 

[dunn2500]

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@Dj4Money wrote:

 Not strange at all if you are upside-down with the car you currently have and to cover it with a refi takes you over 120% of it's value. 

 That makes total sense they won't refi that car but offer you a loan for a new/used car. I would trade-in whatever you got for 25% interest it can't be that special and get the overinflated retail trade-in value for it and get something you want, which I would think is possible with a $50K loan. 

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getting out of that 25% interest is a must whether refi or buy another, or just pay the 10k off.........you will get a decent penny for trade currently, so another car using equity you have in current isnt bad option....

[barca]

I don't think OP is upside down.

from the post he/she owes like 10K and the car is worth 22K. 

Maybe his own valuation is wrong and cap one think otherwise