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Refinancing Car Loan with NFCU

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SoulRaver
New Visitor

Refinancing Car Loan with NFCU

Hello everyone! So I've had a really rough and bad 3 years due to bad health. A lot of my finances have been redirected to pay for my medical bills and I've fallen behind on my current car loan which is with Chrysler Capital. Back in 2020 my uncle who has excellent credit cosigned and despite his amazing score and history, they gave me a loan with 13% which is terrible. We've endured and he's also helped me with bills but the current company will no longer help and with their current customer service call they basically said too bad they can no longer help and they would set up the car for repo if a payment cannot be paid. We're only behind 2 payments which is their current max aka 60days until they can set up the process. Last week I asked my uncle to check his credit and to our surprise his credit is still good and because of all the extentions it didn't really hurt his credit history. He made the decision to join NFCU and I had thought it would be a good idea for him to refinance the car with NFCU. We went through the process and he was denied. He makes decent money and doesn't really have any bills other than the current car loan but we were wondering why he may have been denied. Upon calling NFCU and speaking to a car loan manager, they said it wasn't due to him just joining, that it was strictly his credit history. The manager said the best thing to do is wait until we get the letter in the mail explaining why he was denied. The thing is we have until this friday to make a payment or successfully refinance the car loan until the car goes up for repo. My mother had spoken with me and said she would be willing to join NFCU and she has a fresh fico score pull in which across the board she has active credit. Her util is less than 6% with her cards totaling over 30k in limits total. She's very responsible and has an excellent payment history. Scores are all above 800 with the exception of trans which is 797.  My mom is willing to cosign with my uncle on the car loan. If it means anything our car is a 2018 Toyota Camry XSE V6 with 111000 miles on it currently. Yes mileage is high but my uncle does a lot of traveling for work. Car is in top notch condition with 0 issues. The thing is practically baby'd. But I do understand that doesn't matter when it comes to companys. They see cars with high mileage sometimes as "worn out". Has anyone had any experience with refinancing with NFCU? Would cosigning improve odds just enough for approval? 


Message 1 of 7
6 REPLIES 6
Slabenstein
Valued Contributor

Re: Refinancing Car Loan with NFCU

Have you checked what you could get for the car if you sold it?  Would it be enough to cover the current payoff for the loan?


Message 2 of 7
CreditCuriosity
Moderator Emeritus

Re: Refinancing Car Loan with NFCU

Sounds like you are in a pickle if payment is due on friday.  Also not sure how 110k miles will play in LTV of car etc as no idea what car is worth as that can come into play with any bank/cu.  Time is off essence obviously or car will be repoed.  Doubt you can sell it in that time frame as well and come out on top of what is owed especially at your previous interest rate.  Personal loan might be the best bet for current situation you are in with company like lightstream or similiar and get in the 6-7 range.  although havent checked on their current rates.

Message 3 of 7
rileydude
Valued Member

Re: Refinancing Car Loan with NFCU

I would suggest to talk to a local CU or your house bank in your area. I'll  talk to a,loan officer in branch about the situation and see if they would be willing to refinance. I am not entirely sure NFCU guidelines when it comes to LTV for used vehicles.

Message 4 of 7
MissLiz
Frequent Contributor

Re: Refinancing Car Loan with NFCU

Maybe your uncle should look into getting a small personal loan to cover three months of car payments. That can you buy you time to see about getting it refinanced under your mothers name. 

“A woman’s best protection is a little money of her own.” – Clare Boothe Luce
Message 5 of 7
Cowboys4Life
Frequent Contributor

Re: Refinancing Car Loan with NFCU

" I've fallen behind on my current car loan which is with Chrysler Capital. Back in 2020 my uncle who has excellent credit cosigned and despite his amazing score and history, they gave me a loan with 13% which is terrible. "

 

The rate you got was based on your being the primary borrower.  Had you not had a co-signer you would not have had a loan at all.  Having a co-signer with great credit means you get the loan because they are giving a personal guarantee you won't default.  It does not mean you get a tier 1 rate.

 

"I had thought it would be a good idea for him to refinance the car with NFCU. We went through the process and he was denied. He makes decent money and doesn't really have any bills other than the current car loan but we were wondering why he may have been denied."

 

I am surprised no one has mentioned this.  The refinance was denied because he isn't the primary borrower or owner of the car.  Only the primary borrower can initiate a refinance loan and you are not the one who did that.  His application was basically asking NFCU to loan him money on a car he doesn't legally own even though he is financially responsible for the loan.  If the car is registered, insured, and titled in your name only then you would have to be the one to refinance as the owner. 

 

"My mom is willing to cosign with my uncle on the car loan."  This will be the same outcome:  a denial.  It isn't her car legally either.  You would have to apply for the refinancing and with it being 2 months in default pending repo I don't see any lender refinancing the loan even with 2 co-signers.

 

You could sell the car to her and she could then try to refinance.  She would have to pay off the current loan to do that though.  I don't see being able to get that process done before a repo though.  It would take weeks to sort that out.  I agree with the others who said your best bet is one of them to get a personal loan to get this caught up then you can try and refinance with a co-signer.

Message 6 of 7
Gollum
Established Contributor

Re: Refinancing Car Loan with NFCU


@SoulRaver wrote:

Hello everyone! So I've had a really rough and bad 3 years due to bad health. A lot of my finances have been redirected to pay for my medical bills and I've fallen behind on my current car loan which is with Chrysler Capital. Back in 2020 my uncle who has excellent credit cosigned and despite his amazing score and history, they gave me a loan with 13% which is terrible. We've endured and he's also helped me with bills but the current company will no longer help and with their current customer service call they basically said too bad they can no longer help and they would set up the car for repo if a payment cannot be paid. We're only behind 2 payments which is their current max aka 60days until they can set up the process. Last week I asked my uncle to check his credit and to our surprise his credit is still good and because of all the extentions it didn't really hurt his credit history. He made the decision to join NFCU and I had thought it would be a good idea for him to refinance the car with NFCU. We went through the process and he was denied. He makes decent money and doesn't really have any bills other than the current car loan but we were wondering why he may have been denied. Upon calling NFCU and speaking to a car loan manager, they said it wasn't due to him just joining, that it was strictly his credit history. The manager said the best thing to do is wait until we get the letter in the mail explaining why he was denied. The thing is we have until this friday to make a payment or successfully refinance the car loan until the car goes up for repo. My mother had spoken with me and said she would be willing to join NFCU and she has a fresh fico score pull in which across the board she has active credit. Her util is less than 6% with her cards totaling over 30k in limits total. She's very responsible and has an excellent payment history. Scores are all above 800 with the exception of trans which is 797.  My mom is willing to cosign with my uncle on the car loan. If it means anything our car is a 2018 Toyota Camry XSE V6 with 111000 miles on it currently. Yes mileage is high but my uncle does a lot of traveling for work. Car is in top notch condition with 0 issues. The thing is practically baby'd. But I do understand that doesn't matter when it comes to companys. They see cars with high mileage sometimes as "worn out". Has anyone had any experience with refinancing with NFCU? Would cosigning improve odds just enough for approval?

From what you wrote, it seems your uncle drives your car for his work. Maybe your uncle would be willing to buy your car (I don't know how that would be done... ask the bank/whatever that you make car payments to). Maybe your uncle would then let you drive the car if/when you need it. The website kbb.com can show you the current "blue book" value. What is commonly called "blue book" value refers to what was known as "Kelley Blue Book" value before the Internet (you can probably see how "kbb.com" was chosen as the domain name). You want the Private Party value, which may be less than the payoff amount of your loan.

Credit Scores: (FICO 8) 846 Experian July 2024, 842 TransUnion June 2024 | (FICO 9) 850 Equifax July 2024
Credit Cards (newest to oldest): NFCU Visa Platinum $25,000 | BECU Cash Back Visa $10,000 | American Express BCE $9000 | Simmons Bank Visa $7500 | Capital One Quicksilver Visa Platinum (PC/upgrade from No Hassle Miles Rewards Visa Platinum) $500
Message 7 of 7
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