*UPDATE* Lending Tree for Auto Refi Success

[rkdavie]

Nine months ago I bought a new car and took a 13.9% loan from GM Financial (obtained through the dealer).  Besides needing a new car, this was part of my grand plan to rebuld my credit and eventually qualify for a mortgage.  My credit scores at the time were in the 580 range.  I originally intended to wait a full year before attempting a refi, but a few days ago I got the urge to put my info into Lending Tree and see what it would spit out.  My current FICO score from here was 731, so I figured I had a shot.  Lending tree presented me with 5 offers.  The highest rate offered was 15.31% from some company called Blue Yield-I don't think so.  Capital One came in at 7.50%-better but not ideal.  The best rate was 3.29% from Up2Drive.  Never heard of them, so did some research.  They are the financing arm of BMW North America.  I called them up and asked them "what's the catch".  They said no catch and explained the offer.  They fedexed the documents and a "drive check" which I would send to my curret lender to pay off my current loan.  All I had to do was fax them some required documentation and they would call with an authorization number to put on the check.  They got everything they needed and now my check is on the way to my current lender to payoff my current loan.  So far, I am very impressed with this company.  They were wonderful on the phone and answered all my questions.  One of the other lenders wanted to try and sell me all kinds of extra stuff like extended warranties.  Up2Drive seems very straight forward.  I'll update when my current loan is paid off and my new loan funds and let you know if this was really as easy as it seems.  The best part is my loan payment will be REDUCED BY $80 A MONTH!  I did not extend the length of my loan.  My orginal loan was 72 months.  I had paid 9 months.  This loan is for 60 months. 

The only negative using lending tree to get offers is that everyone who gives you an offer will call relentlessly to try and get your business.  It's all good though.  I will be saving a ton of money!

*UPDATE** Probably the easiest loan transaction ever!  Old loan paid off, new loan funded within days. I'm happy!!!!

By the way, everything I learned about rebuilding credit is due to these forums.  Thank you all!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[SamsungHDTV]

congrats on the nice savings. With your scores you should be able to get better I would think.

[BackInTheSaddleAgain]

So when you use a lender like Lending Tree who basically shops your loan for you, how do inquiries work? Do you end up with a ton of inquiries, or just one?

[webhopper]

It really depends...  What I did with the mortgage was submit the info and then wait for the phone to ring.  I ended up getting my credit run by 3 lenders and got quotes from them.

If you want to use the results page to limit who pulls your credit, allow them to leave messages and then call back the ones that truly interest you.

[rkdavie]

I received 5 offers and all 5 pulled my credit.  However, it is my understanding that pulls for an auto loan withiin a short period of time will count as one since it is expected that you would shop around for the best rate.  Same for mortgages.  At least that's what I've read here on the forums!

[webhopper]

Awesome news congrats!

[Revelate]

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@rkdavie wrote:

I received 5 offers and all 5 pulled my credit.  However, it is my understanding that pulls for an auto loan withiin a short period of time will count as one since it is expected that you would shop around for the best rate.  Same for mortgages.  At least that's what I've read here on the forums!

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This is correct for both Auto and Mortgage inquiries (well assuming they're coded correctly).

Old school was two weeks (under the '98 version), but newer models are 30 days and even 45 days on the newest.  Personally I try to hit the two week rollup (which any LendingTree initiated request certainly will) just in case some future lender is using an outdated model; however, for a mortgage which is explicitly FICO '04 model, within 30 days is the policy so there's some leeway there if required.

[maiden_girl]

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@webhopper wrote:

It really depends...  What I did with the mortgage was submit the info and then wait for the phone to ring.  I ended up getting my credit run by 3 lenders and got quotes from them.

If you want to use the results page to limit who pulls your credit, allow them to leave messages and then call back the ones that truly interest you.

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It sounds like you're saying they don't pull your credit until those matched lenders speak with you. I received 4 offers but all offers are requesting I call in for a quote. I'm just worried about multi inquires.