Preparing for auto refinancing...

audio-disabled · ‎10-11-2017

So, I filed for Ch 7 BK last April, discharged in July.

I bought my 2009 CRV while in Ch 7 BK, almost right after filing, in April 2017. This month will be my 6th month of on time payment with Consumer Portfolio Services. I have read reviews, their service is awful all around. And the interest rate I have is at 22%. I ignored the rate anyway because the dealership put down $1,000 payment on my CRV, so I got the car for $9500 before TTL.

After this month's payment, I will be exploring to refinance my CRV with RBFCU (Randolph-Brooks FCU). What are the odds of my approval and how much in interest rate could it drop? I know it may be hard to speculate how much in interest rate will it drop....I'm hoping at least significantly. I'm not looking to go under 10%. Hoping to see it get cut in half, if at all possible.

But after looking at myFICO scores, it looks like my chances are slim for a good refinancing odds. I'm looking at my FICO Auto Score 2 and 8 for auto lending, it shows my score in between 513-519, rating is poor.

My FICO Score 8 scores is updated in my signature.

Another factor to consider, my Navient student loan was discharged (it was 4-5 years defaulted), but it came back in September. My score took a hit of about 20 points. I'm not sure how much would this hinder my ability to refi.

Any insights would be greatly appreciated.

Anonymous · ‎10-11-2017

Very poor odds unfortunately. Not just because of your FICO score but because of your LTV.

If you can get your LTV to 80% and get your FICO scores up to 580 or so, you will have better odds.

audio-disabled · ‎10-11-2017

How did you determine the LTV? Loan-to-Value?

I need to get my FICO Scores up to 580 or so, are we talking about FICO Auto Score 2/8?

Anonymous · ‎10-11-2017

Even at 580 it'll be tough but some lenders (especially credit unions) are more forgiving of low FICO scores if your LTV is 80% or lower.

LTV means Loan-to-Value -- so you find the value of the car (use NADA's website as that's what many lenders rely on) and then refi for 80% of that value. That means you will have to "come to the table" with cash, probably. Depending on the age of the car the LTV may be even lower, hard to say.

Do you have a relationship with a credit union you can talk to?

audio-disabled · ‎10-11-2017

I do have RBFCU already since right before filing bankruptcy.

I have begun a conversation once during summer about refinancing. RBFCU suggested I wait til after 6 months of on time payment. Nothing more was discussed.

Never too early to walk in and get a better idea of what I may be looking at, right?