@Hall8 wrote:Hello - I completed my 5 year chapter 13 payment plan last year. Following that, I still have my student loan debt which is quite substantial at a little over $200,000. I got a secured card once my plan was up and recently was able to get a mortgage through a lender that did manual underwriting. So, I tried to refinance my student loans which mostly have 14% interest with Mohela. However I was denied. I'm thinking it may be because my bankruptcy doesn't fall off until March 2026, would this be a correct assumption? Also, is there anything else I can do until then to increase my chances of refinancing at lower rates?
TU is 736 and Equifax is 753
The refi could very well be due to your bankruptcy notation; your scores are a bit higher than mine were when I had nine or so months left with my Chapter 13 showing. Immediately after the notation dropped off my reports, my scores all popped from the high-600s through low-700s, in to the 800s. Things will get much easier for you come next March.
@Hall8 wrote:Thank you for the information. Is there anything else I can do between now and then to increase my chances of an approval for refinancing and getting the lowest possible interest rate?
The best advice would be to sit on whatever credit you have now and then:
- Apply after your Chapter 13 falls off your records
- Apply after your most recent application for credit ages to 1-year
- Prior to your refi application, practice AZEO (also known as AZE1)
Doing the above will get you your best possible scores.