Hello! My wife and I have been discussing me downsizing from my full size truck to a mid size truck so we got preapproved with PenFed. We have our BK discharge from April of this year and we knew that would be an issue but they still preapproved us for up to $40k and 8.7% APR. I found a 2018 Chevy Colorado I really like so I called PenFed with the info and was informed that due to the collateral the rate would go up to 9.6% I asked how that even works and was told it's all due to the collateral.
Does this sound familar to anyone? I've never had a bank or credit union who preapproved us change the rate just due to the vehicle. It's brand new never titled. Is this a normal thing with PenFed?
I had the deal all worked out with the dealer but I'm thinking of holding off.
