Post Discharge Have HIGH INTEREST auto loan looking refinance

[99ramon]

BK discharged in May 2010. In July I bought a used car from a dealer. ONly lender approved was SANTANDER BANK (Save bank as DRIVE financial and ROADLOANS.COM)

I got a rate of 19% and payment is $405 a month for 6 year note.

I'm certain after 12 months I can refinance relatively easy. I am looking for an autorefinance that would consider me sooner. ANy ideas? I've tried local credit unions but the BK is an issue for them. I am about 95LTV on the loan so not upside down

Any ideas would be appreciated. Thanks

Declined with Capital One already.. any BK friendly auto lenders?

[backtoschool]

BK discharged in May 2010. In July I bought a used car from a dealer. ONly lender approved was SANTANDER BANK (Save bank as DRIVE financial and ROADLOANS.COM)

I got a rate of 19% and payment is $405 a month for 6 year note.

I'm certain after 12 months I can refinance relatively easy. I am looking for an autorefinance that would consider me sooner. ANy ideas? I've tried local credit unions but the BK is an issue for them. I am about 95LTV on the loan so not upside down

Any ideas would be appreciated. Thanks

Declined with Capital One already.. any BK friendly auto lenders?

Do you have a repo on your record? What year and model is the car? Those would be two of the factors that might be causing you to get declined. Have you cleaned up your credit reports post discharge to make sure that no balances are still reporting?

There are some national credit unions such as Aliant, Navy Federal, and Patelco that are known to be bk friendly, but if Capital One did not approve you, there must either be something on your report that caused a decline, or the car is too old or something.

If you give us some details that would help us figure out why you are getting declined.

[99ramon]

It is a 2009 KIA Sportage with 33,000 Miles. I believe the inquiries / 3 new credit cards (Cap 1 $500, Orchard Bank $300, Redwood Credit Union $500 Secured) scares off automated/computerized underwriting. I'll check the credit unions. I need to make sure the balances on the low limit credit cards are below 25%. If over my Fico drops significantly.

[Meh]

Im in almost the same boat tho I have only applied for re-fi once and was turned down due to the BK being too recent at the time. I have a loan with Santander but my APR isn't as high. It's been about a year post BK and i'll be looking to refi around January or so. I hate to say it but you may be best served by just waiting a little longer. I had a car through Capital One that was IIB so im pretty sure that's a no go for me as well. I'll be sticking to local and national credit unions when I look to refi.

[backtoschool]

It is a 2009 KIA Sportage with 33,000 Miles. I believe the inquiries / 3 new credit cards (Cap 1 $500, Orchard Bank $300, Redwood Credit Union $500 Secured) scares off automated/computerized underwriting. I'll check the credit unions. I need to make sure the balances on the low limit credit cards are below 25%. If over my Fico drops significantly.

Capital One will refinance a car of that year and miles so not sure what is going on there. Your inquiries might be too many, but I had that many when I was approved by them. They check all three credit bureaus, so make sure you have no balances or other stale and bad info on any of your reports if you are going to retry with them.

Another credit union to try is digital credit union. They are less bk friendly regarding credit cards than the other ones I mentioned, but have been known to approve auto loans to those with a bk. As with anything, ymmv.

[Amy26]

I was able to refinance my post discharge vehicle 6 months after purchase. I took my rate from 17.9 to 8.9 at my credit union. This is of course assuming you can clean up your report and get it in much better shape 6-12 months after your BK. Just for kicks, a few months ago I applied at capital one for a refinance and they did approve it and I think it was like 6% or something? But it wasn't worth it to me to move it based on the terms and such.

So, I would definately recommend finding a bk friendly credit union (I'm with Apple FCU) or Capital One.

[LSUTiger32]

Do everything you can to get the thing re-financed. Listen to BTS and Amy on this one because well I have no idea. But good night 19% on a car.....why don't they just club you over the head while they are at it.