Auto Loan & Credit Issues *STRESS*

[Anonymous]

I would greatly appreciate any feedback on my situation :

I am currently financing a vehicle with Ford Motor Credit. I have a 4-yr. loan, with 36-mos. left. Never late, always pay the required amt. As of today my payoff is $4,120 @ 19.75% (I know!). So far I’ve paid about $1500 dollars in interest! My car is in decent condition, but is upside down in value (I never fixed some hail damage on it), and with high mileage. I don’t think this loan is worth it with this car I have, and FMC won’t lower my APR. So what are my options?

I’ve only applied online w/Cap1 Auto Finance b/c I received a pre-approval in the mail, but was TD. They pulled EXP – My TC est. my EXP @ 585 four weeks ago, I would think it was higher now. My EQ is 643 (It was 628 > month ago – something I’ve been working on). My Credit: Never pay late, always pay at least the min. & have a low amount of debt & good DTI. Negative: Short length of credit history (oldest acct is 3 yr.), Lrg amt. of new credit. 1 collection ($75, medical) & a lot of inquiries.

I also applied with CCCU, but I am still waiting to hear back from them. Being TD by CAP 1 worries me. I thought for sure that I would at least get approved with a high APR. Any advice would be really helpful! Thank you!

Message Edited by nuttd05 on 08-30-2007 07:22 AM

[Anonymous]

Welcome. The credit union may be a solid option for you as they are more willing to work with their customers. I strongly believe that you will be able to get approved as your past auto payment history has been impeccable. Just explain your situation and there will be someone to help you achieve your goals. Try to keep your inquiries to a 14-day window as they will count against you as 1 inquiry. This is the auto shopping exemption so to speak.

Have a blessed day!!!

[Anonymous]

Try to already be working on a letter that explains exactly what you have just posted on this board. They might ask for a letter like this to include in your file. I had to write one when we financed our 1st home  cuz I had some paid collections.

[Anonymous]

Thanks for the advice! Here's what I've been thinking of doing:

1) Refinance my loan >  IDK much about auto-refi., but what I've heard is that Creditors won't refi less than $7,000. Another downside to this would be that I loose this account that I've had for 1 1/2 yrs right? Any other advice on refi?

2) Try to pay off my FMC loan ASAP, before my car is worth nothing at all (6 mos. to 1yr). This way I keep my good history with FMC (but still pay too much interest!), and have a better chance of getting financed later w/lower APR.

3) Just buy a different car, a new loan with a lower APR (I would hope anyway), and pay the same amt. of interest, just over a longer period of time?

[Anonymous]

If you choose to refinance your existing loan YOU WILL NOT LOSE THE HISTORY. The history on your existing loan will remain on your credit report for 10 years if you have perfect payment history on it. Refinancing will not change this. It will just cause your existing accoutn to be reflected as a zero balance, paid as agree and open a new trade line for the refinanced amount.

[cgmiller63]

If I were in your shoes, I'd look for a credit card with a a low introductory APR and use it to pay off the car.  If that is not an option, I would try to get financing from a credit union as they usually have the best APR's.  If you are dead set on getting a new car, some dealers will allow you to roll the balance from your old vehicle to your new car loan.  I caution against that only because you will be "upside down" on your new loan.  Good luck.

[Anonymous]

Allright, I've been doing rate shopping all day. I can't refi my auto loan because the loan amt is too low. I've applied for auto loans with CAP1, Lending Tree, E-Loans, & a local CU (who were rude and replied 5 hours later with just, "You were denied, bye!")and got denied from all these. E-loans referred me to another website that works with auto loans and they offered me 16% interest rate with a loan of $7500 (which is not what I need, and would be totaly pointless to use).

I have yet to hear back from CCCU, and am going to try applying with my bank still. It looks like my only option is to keep my crapay car, pay thousands in interest when it's only worth $5. Any other ideas?

Thanks for your help!

[Anonymous]

OMG, Patty from CCCU just called me and gave me some great news!

By some amazing grace of God, they approved me for their LOWEST rate! Unbelievable! 6.75% For a used car! $13,000! Patty said I had really good credit (The other creditors didn't think so seeing as how I was denied like 5 times!). She couldn't understand why I wasn't at least approved. Anyway, thanks for all the advice!

[cgmiller63]

Praise the Lord!!!! 

[Anonymous]

God is SOOOO GOOOOOOOD!!! Congratulations, I am so happy for you. Say a prayer for me too that I get this job I applied for (had 2 interviews and they want to see me again next week) as I am waiting to hear back about this job that I recently applied for, which will help me pay off all my debts. I really need it too. Thanks, Cecilia

Message Edited by cfstr1 on 08-30-2007 05:09 PM