Help with post bk auto re-finance UPDATE!

[Beilin]

Hi all,

I filed bk in May 2019 and discharged in August 2019. In October I obtained an auto loan through Carvana at 15% and I want to start looking into re-finance options. I have not been able to prequalify through capital one (burned them in BK for $800). I do have accounts with both PenFed and NFCU but I am hesistant to apply due to bk being recent and because Navy federal I have seen offer higher interest rates or complete denials and I have not found a thread where someone was approved for re-finance with PenFed before 1.5 years post bk. For those who have financed with these credit unions did you have to wait the 2 year mark post bk for approval? Fico Scores are 630s across all bureaus. 

Update: NavyFed denied even after asking for recon BUT I was able to refinance from 15% to 9% with Lending Club. I received the approval today

[Scupra]

I was approved for an auto loan by NFCU quickly out of BK, I can't remember if it was under the 1 year mark or not though. Do you have any past auto loan TL's? A little bit more about your profile may help, as well as short details on the auto you're attempting to refinance. Year and LTV play a huge part in rate

edit: I just checked, I was exactly 12 months post FILE date when approved through NFCU

[Beilin]

The car is a 2017 Honda Civic EX-T. The loan amount remaining is $18,560 financed at 15%. The one auto loan I did have was removed from my report when I filed but I do have a student loan that's been reporting for 8 years with no lates. The balance on that is $4600.

[Scupra]

If it were me, I’d give Navy a shot. Maybe even look into DCU as well. Good luck!

[Beilin]

Update: NavyFed denied even after asking for recon BUT I was able to refinance from 15% to 9% with Lending Club. I received the approval today

[Scupra]

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@Beilin wrote:

Update: NavyFed denied even after asking for recon BUT I was able to refinance from 15% to 9% with Lending Club. I received the approval today

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Glad you found a route that worked for you!! That's a great decrease in rate. Did NFCU happen to state why the declined? Or did they just pick on the obvious BK? Thank you!

[Beilin]

@Scupra

Thanks! No they did not give a reason for denial so I have to wait for the letter to come in the mail but I will update once I get it.

[Anonymous]

I just tried to refi with PenFed 11 months post BK. Denied. Recon. Went to board for approval. Would have been approved and they said I was doing great on my credit responsibility but their rule was no loan products until after 2 years of BK. 

I did receive a offer to drop my interest rate from 18.35% to 12.25% from Lending Club. Not sure if its worth taking. 

[Beilin]

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@Anonymous wrote:

I just tried to refi with PenFed 11 months post BK. Denied. Recon. Went to board for approval. Would have been approved and they said I was doing great on my credit responsibility but their rule was no loan products until after 2 years of BK. 

I did receive a offer to drop my interest rate from 18.35% to 12.25% from Lending Club. Not sure if its worth taking. 

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That's good to know, I guess I'll have to give up on refinancing through them. I did accept the lending club offer as it saves me a little over $4000 in interest but I guess from now on I will just throw extra money at my loan to pay it off early because by the time PenFed will let me in I wouldn't have much left on the loan. Thank you though and good luck on journey, I hope you find a good refinance offer for your car soon.

[wHiTeSoL]

At 10 months post DC i was approved through Lexus financial and lightstream @ 6.49%. 

At 2 years post DC below are the results of my refinance search. (Copy paste from another thread)

2 Years post BK7, scores are now 715, with tons of cards now. Just applied to refiance my car loan I got right out of BK7. Here was the results. I chose a lot of local CUs and some of the larger ones. Some I had a relationship with, most I didn't though, this was for a 48 month used car refinance.

Chase - DECLINE
WF -Decline
SFFire - DECLINE
Golden1 - Approved 5.540% 
Alliant CU - Approved 5.25% 
SM Credit Union 4.49% (3.24% for 36)
Penfed - Approved 4.75% 
Tech CU - Approved 3.99% 
Patelco - Approved 3.94% 
Provident CU - Approved 3.625% 
Langley CU -DECLINE 
NASA CU - DECLINE