Refi Current Auto Loan with Unpaid Tax Lien

[jetsfan2013]

My current car loan is through Cap One, and I purchased in March 2012. At time, loan was for 17,000 at 12.6% for 60 mo(08 Toyota Camry).

I have continued to rebuild my credit since then, and at the 1 year mark, I was thinking of trying to refi. I attempted to in October, but local CU denied me due to the

unpaid federal tax lien(though I have an installment plan in place with IRS). Ironically that wasnt an issue with Cap One when this loan originated.

Any thoughts on possible options? I plan on keeping this car, but would like to lower interest and payment if possible

[pizzadude]

I'd definitely keep trying to a refi. Was the tax lien an issue because it was hurting your scores or because it was negatively affecting your DTI, or just because it was unpaid ?

[Anonymous]

+1

[jetsfan2013]

From what I understand, the CU made it an issue because it was unpaid. I showed them proof of the installment agreement the IRS has in place for me and asked for a recon with that payment amt but was still shut down. I was kinda bummed because I hate wasting inq on my credit, and though I love the current car I have, I dont wanna pay the rate I have forever.

[Anonymous]

Tax liens can be considered worse than bankruptcy to lenders. I'm sorry you didn't get approved. You can keep trying or wait until the tax lien is paid off.