Just called to check the status of the auto refinance I was approved for through my CU on 12/28. The rep states that the approval made by the computer was "a mistake" and that the loan was NOT approved after all due to excessive debt-to-income obligations. Oh HELL no!!! I got the name and extension of the mgr. of the loan center, but figured I'd give myself a little time to compose myself before launching into my plea for reconsideration. Okay, my income is $30K and my approx. debt is $11K revolving, $10K auto. I realize this is high, but WTF?? To take a page from George's book, DOES PERFECT PAYMENT HISTORY AND A >700 FICO COUNT FOR NOTHING WITH ANYONE??? Any suggestions as to how to proceed? I am paying 11.49% on a 6-year-loan, and with interest rates being what they are and my credit history being what it is, that is RAPE!! :O Sorry for the rant but this sh!t is getting old, and I REFUSE to take no for an answer with this!!
Maybe when you talk to the finance manager you could explain that you are refinancing the loan to save money and reduce your debt obligations. Maybe you could even take the time to figure out exactly how much you would be saving and explain that the savings will go to the other obligations. Even if it's a line of BS, it's gotta mean something...
My income is much less and my debt is much higher, I was approved by Fleet at 7.9% www.creditsense.com
maybe you should just balance transfer the car get a nice low 5% for life and pay it off really quickly.
Sam--I seem to be SOL with regard to getting any type of new credit lately, it seems. But I'll keep digging. Erica--Good point! I will bring that up. I know it seems like a stupid thing to get upset over, but it just blows me away that as my score improves my creditworthiness seems to be getting worse. They said I MAY qualify with a co-applicant--HA! Right. I didn't need a coapplicant for the original loan with B of A, and my score was much lower then, I'm sure. Pure crap! <taking deep breath> OK, I'm done (for now!). Thanks all for your replies.
Here's my last suggestion beaker. Ask for an extended term with no penalty for early payoff. If you can't afford to pay it off according to them at 48 months, ask for 60 months. You'd be surpised. Then just pay extra every month. got citi?
I'm only asking to finance $10K for 48 months. That would make my payments about $20/mo. lower than they are now, so I could definitely afford what I wanted. But if it will help, I will inquire into the 60 month loan, and just pay early. I do have a Citi classic Visa, but it's at about 75% usage. I have a sweet transfer deal for as long as that balance is outstanding, so I'm hesitant to move it elsewhere. If you've been followed the "Twisted Citibank Adventure" thread, I was initially turned down for the AA trick. I am working up the nerve to call today about reconsideration. This whole car thing kind of got me discouraged about that! I will definitely post the results of the refi battle when I get through with it. I'd like to see if Erica's idea works as well!
Tell the manager that you are NOT going to have 2 auto loans, just that you are refinancing your existing loan. Sometimes when the computer "glitches" it mistakes a refinance for a regular finance. Make it clear and don't take no for an answer. KHM
good luck, lots of advice. Make sure they understand refinance and lengthened term. don't feel bad a friend just got the same spiel about 1 day ago from walk-all-over-ya bank with very similar circumstances. That bank of course, would not budge.
Received a call from a lady in the finance mgr.'s office, just confirming some info. She says they will review the application--I guess I should take it as a good sign that they didn't dismiss me right away. "Serenity now, SERENITY NOW!!" hehehe
HAHAHA!!! Slight Seinfeld reference. hehe Good Luck...at least you know what to say after they come back.....
OK, here's the deal: Apparently I am upside-down on my car as it stands right now. I owe approx. $10K on a car only worth $7775. The credit union was willing to approve a loan for the $7775 at 7.75% (or 7.25% if I have the payments taken directly from checking) for 48 months. My payment would only go up by about $15/month, which I can definitely handle. The thing is, I now have to come up with $2225 to pay off the negative equity (am I using the right terms here?) before everything can be finalized. I have considered putting it on one of my MBNA cards, since they're offering me a 5.7% promo for BTs for the next few months. The loan approval is good for 30 days, so I don't need to make a decision now. However, I would appreciate any feedback/advice/opinions anyone here would like to contribute. Thanks again for everyone's support!
Sounds like a plan man. Paying less APR is always a win-win solution. You can't expect a bank to loan money on negative equity Honestly you need to sit down and think hard about getting a new car. You could probably score 3-5% new financing, but of course i dont know your financial situation.
Before using the MBNA make sure about the go to rate, it can go very high and that will take away from your savings. You need to ask yourself how much can you reduce that MBNA debt before the rate goes up. www.creditsense.com
So that's two votes for "do it". I would LOVE to have a new car, Sam, but I honestly don't think I can swing it. I am losing a good chunk of my disposable income in about two weeks because the store where I have my second job is closing. And then two weeks after that, my grad school classes start, so I'm not sure if I will be able to get another part-time job right away. So, my priority is paying down my revolving debt before attempting to finance another vehicle. What it all boils down to is, I really need A. to get a much higher-paying job (not looking good in this market for an Elem. Ed. grad who doesn't want to teach--but that's a whole 'nother discussion board) or B. win the lottery. And I definitely understand about the bank not wanting to pay the negative equity. Hell, *I* don't want to pay it, either. I think I'll stick with this plan for now unless someone proposes something better--and I'm open to suggestions--and crunch the numbers when I get home from work to find out how worthwhile this will be (that's right, I'm doing all this on a "working Friday"--slap my wrists! But, they don't pay me enough here to care. Again, whole 'nother discussion board!) Thanks again!!
GO FOR IT!!! I would give ANYTHING to get out of my interest rate and down to a reasoonable rate, but I owe $4000 MORE than the car's worth. KHM
Beaker, You should check with www.generationsbank.com before doing this refi. Ask for Stacy Atherton. They will refi negative equity as well as the value of the the car in one loan (not split interest, either). 7.9% for up to 24 months 8.9% for up to 48 months They don't report, either, so it will look like you paid off a car loan.
