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Car loan 0% bt offer to do it or not to do it

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Regular Contributor

Car loan 0% bt offer to do it or not to do it

I currently have a 2014 lancer on finance from Santander carrying 18.9% apr

 

Specifics are payout is 9,000 

Just got approved for 15k 0% bt offer on nfcu platinum

 

Also have student loans just over 10k

 

Current profile

Total credit 23k

Current util 0.8% 

 

Can pay 600-1000 monthly on balance if not more

 

Util with transfer would be 64% on the nfcu

41% overall

 

Another wrinkle my son wants the car but works at Arby's (pre-tax weekly is like 320) is in with nfcu between 1st and 2nd card territory

 

He doesn't want to (and I don't think he would get approved for a loan on the 9k) (his ficos are 710-720 young profile) to take over the current loan, on a refi

 

Don't plan to apply for anything else right now except potential flagship towards the tail end of the year. I know this would tank my scores if I did this, would this make disco nervous? Potential AA?

 

Should I do this, got until April 17th to decide, plan would be to hammer on that 0% principle to get it to an amount the bank would find more palatable

 

 

 



10 REPLIES 10
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Moderator

Re: Car loan 0% bt offer to do it or not to do it

Your son's income is not in alignment with $9000.00 car, and given the current state restaurant industry is in, he may not even have that income, so either find some decent beater and pay cash for it, or wait.

 

 

 

You can transfer your car loan to a card, and you probably should, but at the same time, anything you transfer will need to be paid off in shorter period of time.  If you can pay $1000 a month, how come loan balance is still $9000?

Is this a newer loan? 

Honestly, a car loan at 18% is beyond terrible. Maybe you should look into refininancing through a CU instead of coming close to maxing your card and creating whole another set of problems. 

 

 

Message 2 of 11
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Regular Contributor

Re: Car loan 0% bt offer to do it or not to do it

Santander charges interest regardless, meaning no extra principle only payments I haven't been super keen on paying it down to pay 80 principle on a 258 dollar payment, if it was no interest I would be way more keen to pay the big chunks on it another consideration with bt I would get the title and shave 150 a month in insurance because Santander requires 500 deductible, or could sell the car to a third party

 



Message 3 of 11
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Moderator Emeritus

Re: Car loan 0% bt offer to do it or not to do it

I'd do it in a heart beat; actually, I *am* starting that process of getting my mother's DD-214 (just got a nasty gram telling me to actually send the darned thing in) and this is exactly what I am planning to do: refinance my debt down to 0% a credit limit at a time with NFCU, and I'm doing this at nominally 3.85% APR, it's an easy win.

 

Saving 18.9% APR in your case?  It's totally a no-brainer, unless you're flatly selling the car anyway just do it, you can sort it out with your son if you wish after that and I'd suggest just start saving that cash right now.  By 4/17 that's what another $130 or so lost in the wind to interest?  Kick that to the curb with prejudice.




        
Message 4 of 11
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Regular Contributor

Re: Car loan 0% bt offer to do it or not to do it

That's my thinking my only concern is making disco and other lenders upset carrying a 64% util of 9k on a card and 38% overall, but if we hammer the principle down quick to the 5-6 range with his scores navy should finance him no problems and I can get the car off my debt navy has already said they will go a 5 year term on it it only has 50k on it, like I said don't plan on apping anything soon so score loss temporarily is not a concern for me, just don't want AA from disco or citi, however I'm pretty sure they would see on AR that I got this card car loan is gone and now it's on a card, I'd just hate to waste the bt offer on it



Message 5 of 11
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Super Contributor

Re: Car loan 0% bt offer to do it or not to do it

64% is high ish, but not AA high.

 

Especially if you actually work on getting it paid down quickly.

 

If it saves you actual dollars, I vote do it.

04/24/20 Mortgage scores: EX2 741, EQ5 713, TU4 no idea.
05/01/20 Fico 8: EX 703, EQ 704, TU 727.
05/04/20 Fico 9: EX 697, EQ 698, TU no idea...

Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 6 of 11
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Moderator Emeritus

Re: Car loan 0% bt offer to do it or not to do it


@Chandler455 wrote:

That's my thinking my only concern is making disco and other lenders upset carrying a 64% util of 9k on a card and 38% overall, but if we hammer the principle down quick to the 5-6 range with his scores navy should finance him no problems and I can get the car off my debt navy has already said they will go a 5 year term on it it only has 50k on it, like I said don't plan on apping anything soon so score loss temporarily is not a concern for me, just don't want AA from disco or citi, however I'm pretty sure they would see on AR that I got this card car loan is gone and now it's on a card, I'd just hate to waste the bt offer on it


38% is gravy to a lender at this point.  Proceed with confidence.  I've never heard of a one month change leading to AA other than some balance transfer / cash advance offers the lender really didn't want to be used.  In your case spike in utilization (and not a big one) and next month that auto loan will report paid/closed... total non-event, everyone that can passably read a credit report (which is basically everyone not in BOFA mortgage underwriting) will know what's up.




        
Message 7 of 11
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Community Leader
Senior Contributor

Re: Car loan 0% bt offer to do it or not to do it

Santander financing car loans stink...  Dealing with someone who had one, and totalled their vehicle... 

Its not just the sky high APRs... its also how they calculate interest and paying more than the principle does not lessen the interest...

Was trying to refi but scores werent good enough.....

Id think its worth bt'ing it away if possible even if you have to have a bit more UTI than youd like...

-J

 

Message 8 of 11
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Valued Contributor

Re: Car loan 0% bt offer to do it or not to do it

Can you refi the car loan through Navy? I think that's your best bet but absent that moving it to a 0% credit card is a no-brainer.



Last App: BECU 02-26-2020
Pronouns: He/Him/His
Message 9 of 11
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Senior Contributor

Re: Car loan 0% bt offer to do it or not to do it

I'd definitely go the 0% interest route! Having high UT isn't gonna cause the sky to fall over night, though if it continues to increase across seceral accounts. Then they might consider taking action to limit their risk. The worst thing that will happen short term is a decline in scores while havimg higher UT. But that will lower as you make those larger payments. 

 

I've been at 50% UT on a couple cards all at the same time and made it through just fine. AA generally isn't caused by only one factor.






Message 10 of 11
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