Refinancing non-reaffirmed loan

[Anonymous]

Hello everyone.

Post discharge 1+ year now with decent scores and high income.

I did NOT reaffirm my car loan but kept the vehicle and always paid current back as promised.

My credit builder loan just ended and I'm looking to get a more normal loan on my report.

Applied to refinance at Capitol One. Approved for 3% rate.

With everything set to go through we made a joint call to current bank and C1 said they could not continue with the loan because it wasn't reaffirmed. I escalated the call and a nice manager told me it was company policy and there is nothing they can do. He said there can be issues with transferring car titles that went through BK and the risk was too high.

I called local CU and they have the same policy.

Both were eager to get me in a new car but I dont want that.

Any lenders out there that work with non-reaffirmed car refinancing?

[DebtStinks]

I'm sure something with experience in this specific area will chime in, but in the meantime....

Have you considered paying your current lender in full and doing a cash out refi?

Best of luck!

[Anonymous]

I asked C1 yesterday if I could pay the loan in full and then refinance so there would be no issues with the title. He said the new loan would then be considered a title loan with much higher rates. Not worth it at that point. 

[DebtStinks]

It may just be that Cap1 doesn't want to do cash out refi's right now. I've done a cash out "refi" on a vehicle that was recently paid off after a BK. I did it with my CU.

Just keep searching.

Best of luck!