Recently joined DCU for a 100% HELOC. In the process, have been offered a car loan and could refinance my current wheels. I have a 12.5% loan from Chase, originally four years and three years to go. My payoff would be $7.5k and my car is worth more, no problems there. The DCU rate of 5% would save me about $20 a month, or $720 overall, assuming I continue for the same amount of time. I have no stress w/the monthly payments and frankly, don't get that excited over the $720. However, $720 is still something and in terms of bottom line thinking, it makes sense. Here's what's stopping me. When I got my car loan a year ago, I was happy to have a high interest loan w/a prime bank. I was 1.5 years post BK and didn't think I could get a loan w/Chase. I put down a considerable deposit (25%) to make it happen. I hoped that somewhere down the line, having a track record with Chase would open the door for a credit card. I tried applying after six months and was denied, due to my Ch7 BK. With three years to go on this loan, I was thinking that the BK would become less of an issue. I could be five years post BK and then apply. Is this hopeless? Should I just let it go and get a better deal today, put $20 monthly in my pocket or towards my payments, or should I hang in there waiting for Chase to make an offer? Has anyone had any positive or negative experiences along these lines?
Unless you really want to stay with Chase, refi the car and put the extra $20 on your highest interest rate debt. Do NOT put it in your pocket. You will be lowering the rate on your car, and you'll pay extra on the higher rate. The Rule of 72 will work in your favor, you'll be paying off money that would have interest compounding on it. I'm no fan of Chase, don't want a card with them (although it looks like I will have one through all the mergers), so I would dump it in a heartbeat.
I think you should refi with DCU. $20 is $20. Why pay more when you don't have to? I wouldn't hold my breath waiting for Chase to give you a card because you have a car loan with them. Car loans have easier approval guidelines than credit cards as they are secured by the automobile itself. A regular credit card is unsecured. DCU seems to be doing a good job with its customers. It may be better to spend your money and energy with them. Seems they will do you right. Good luck on your decision!!
Should I hang in there waiting for Chase to make an offer? ******************* You may be waiting for the ship that never comes in.
Get rid of Chase. Not that they are a bad bank, but unless you are dealing with credit unions and smaller banks it makes no difference it you have a perfect auto loan with them when it comes time to apply for a credit card. I think if you were using Navy FCU, USAA or something like that they they may offer you a credit card but chase wont offer ou one based on your auto loan. You have to rememember that the division that approves auto loans is completely different from the division that approves mortages, which is different from the division that does credit cards. Its like a bunch of little sister companies that take all the money that they have made at the end of the year and give it to the parent company (chase). Plus 20 is 20 dollars. If its not that big of a deal for you do the re-fi and do this with the 20 dollars 1. donate it to the red cross 2. save it 3. pay down debt 4. pay an extra 20/mo on re-fi 5. give more to your church 6. buy your self something nice 7. Send it to me I like number 7 the best d
