PenFed refinance pending with loan officer? *Update- Approved!

[Mischa]

I became a member and submitted an app to refinance my car online with PenFed today. It went to pending with loan officer status. Is this a bad sign? I called to see if they needed anything, hoping to get more info and the Rep said it could take 6 business days and didn't offer to transfer me to a loan officer to speak with. 

I'm really nervous now. Is this normal or the equivalent of the dreaded 7-10 day credit card app message?  Loan payoff amount is about 11.5k. Not upside down on loan, but not much equity either due to high interest rate on existing loan. I've been at the same employer 6 years. Income is 55k. EQ FICO 9 is 760, EQ FICO 9 Auto is 773. No baddies. Current debt is just the existing car loan and about 1k reporting on credit cards. 

Haven't gotten an alert they've pulled credit yet, but I've noticed EQ usually takes 24 hr before alerting me. 

7/6- PenFed finally got around to processing my app today. I called end of last week and they said they were behind. Approved for 48 months at 3.14%. Not the lowest rate, but for a 6 year old vehicle with 70k, I don't think I'll find significantly lower by shopping around. Happy with the rate. 

[Gmood1]

This seems to be the norm for Penfed lately.

They use to process these apps within minutes or hours. Or you could call in and the CSR could talk to the UW, while you wait on the phone and come back with the approval.

Now it can take several days. If they haven't pulled your CR. Then no one has looked at it yet.

You're most likely fine. They've just grown too big, too fast for the staff it seems.lol

I believe the last time I applied it was on a Saturday. Didn't get a pull until almost the end of the following week. 

They use to offer highly competitive rates. Now they display rates that people with 800 plus scores don't even qualify for. 

A few years ago you'd gotten the best rate with your current scores.

I think you'll be approved with the info you've provided. 

I've always recommended them in the past. But now, there are several others I would try before my old trusty Penfed. Such as USAA or Navy Fed. USAA just makes auto loans too easy!

[CreditCuriosity]

you should be fine as @Gmood1 mentioned.  Last time I did an auto loan although new loan through them i called up did it over the phone and was approved instantly and checked was overnighted to me.  With that said that was 3-4 years back and alot has changed with penfed by acquiring other CU's and growing, etc.  Kinda unfortunate as your scores seem fine, especially if you aren't upside down on your car that is pretty much a no brainier for them to approve you on a secured loan.  If in a hurry also as mentioned try to get a supervisor on the line as most of the time or at least they use to be UW's as well if I am not mistaken or should be able to get it addressed.  Mentioned above i told them how much they asked for permission to pull credit said sure they did said hold one second while i call UW was a 5 min ordeal, but that was the past.

[Mischa]

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@Gmood1 wrote:

This seems to be the norm for Penfed lately.

They use to process these apps within minutes or hours. Or you could call in and the CSR could talk to the UW, while you wait on the phone and come back with the approval.

Now it can take several days. If they haven't pulled your CR. Then no one has looked at it yet.

You're most likely fine. They've just grown too big, too fast for the staff it seems.lol

I believe the last time I applied it was on a Saturday. Didn't get a pull until almost the end of the following week. 

They use to offer highly competitive rates. Now they display rates that people with 800 plus scores don't even qualify for. 

A few years ago you'd gotten the best rate with your current scores.

I think you'll be approved with the info you've provided. 

I've always recommended them in the past. But now, there are several others I would try before my old trusty Penfed. Such as USAA or Navy Fed. USAA just makes auto loans too easy!

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Well darn. I did quite a bit of research and PenFed seemed to be a constant on low rates. I also decided to go with them because they pull EQ 9 or EQ auto 9 (I've heard conflicting info on which) and those are much higher than my 8 scores and I have the least inquires on EQ as well. 

Good to know the review part isn't necessarily a bad sign. My vehicle is a 2015 with 70k on it so I know I wouldn't qualify for the lowest rates regardless but I was hoping around 4%. 

A week to pull credit? Oh geez, I have a card reporting late next week that I guess I need to make sure reports $0 balance. Can't risk any fluctuations. Thanks for your input, much appreciated! 

[Loquat]

OP, what is your current interest rate and how much longer do you have on your existing loan? Reason I ask is because unless your current rate is really high, a small change in rate on $11.5k is probably something that can be overcame by making slightly bigger payments to your current lender.

While refinancing is usually a good thing, when the balances are really low, it “sometimes” its better to make slightly bigger payments to the current lender to pay it off sooner rather than starting a new loan and taking an inquiry and a hit in score for a new tradeline.

Just something to consider.

[Mischa]

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@Loquat wrote:
OP, what is your current interest rate and how much longer do you have on your existing loan? Reason I ask is because unless your current rate is really high, a small change in rate on $11.5k is probably something that can be overcame by making slightly bigger payments to your current lender.

While refinancing is usually a good thing, when the balances are really low, it “sometimes” its better to make slightly bigger payments to the current lender to pay it off sooner rather than starting a new loan and taking an inquiry and a hit in score for a new tradeline.

Just something to consider.

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It's really high. I got the loan when my score was under 600 and needed a new vehicle ASAP. Current lender is Ally, 13.54%, 48 mo remaining. I also stupidly took the 4 month Covid forebearance they offered last spring because I was feeling paranoid about job stability at the time. I've barely made a dent in the principal. 

[Loquat]

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@Mischa wrote:

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@Loquat wrote:
OP, what is your current interest rate and how much longer do you have on your existing loan? Reason I ask is because unless your current rate is really high, a small change in rate on $11.5k is probably something that can be overcame by making slightly bigger payments to your current lender.

While refinancing is usually a good thing, when the balances are really low, it “sometimes” its better to make slightly bigger payments to the current lender to pay it off sooner rather than starting a new loan and taking an inquiry and a hit in score for a new tradeline.

Just something to consider.

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It's really high. I got the loan when my score was under 600 and needed a new vehicle ASAP. Current lender is Ally, 13.54%, 48 mo remaining. I also stupidly took the 4 month Covid forebearance they offered last spring because I was feeling paranoid about job stability at the time. I've barely made a dent in the principal. 

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@Mischa What is the year, make, and model?  I know you said the vehicle has about 70k on the clock.  Just trying to see what options may be available. 

[Mischa]

It's a 2015 VW Passat, SE sport model with most of the bells and whistles  (navigation, leather, push start, sunroof etc). Just hit 70k for mileage. 

I'd like to keep the car, at least for the next several years,  but it makes me sick to see how much interest I've been paying. Tentative plan is to keep it until it's paid off then give to my daughter as she'll be driving by then. At that time I'd take out a new loan for the car I really want. 

[Mischa]

Update: just got the HP EQ alert from myFICO. PenFed apparently did pull yesterday. Not sure if it was when I became a member and signed up for a savings account prior to the refi app or directly connected to the app. 

[Gmood1]

Ok, for membership the pull is nearly instant. It was when I joined.

Maybe you'll know something in the next day or so.