Refinance Auto Loans Homepage

Question: Why won't my auto loan get refinanced?

(Posted by: r.tenbrink on 2008-06-12 18:17:57)

I have a loan through Chase bank. We have paid the loan payments and added a bit to each payment to pay down the principal. I have had the loan for 10 mos. at 18 %. My credit was terrible when we were initially financed. My credit score has gone up over 100 points since the loan started. I have had no late pays or added any credit that I did not have at the time of the loan. I was denied refinancing by Chase, and really do not understand. My credit is way better, and I have paid everything on time. Any underwriters out there that can help me understand?

Posted by: Em C on 2008-06-12, 21:41:30

If you are adding a bit to the principal each month why do you need to refinance? Interest on car loans is not calculated the same as a home loan so it does not compund in the same way and the terms are way shorter, say 5 years as compared to 30 years. Yes it sucks to have an 18% rate instead of 9% but the difference in the total amount of interest paid is minimal. If you continue to make extra principal payments each month you'll pay the loan off sooner and save on interest that way.

Posted by: A W on 2008-06-12, 18:22:51

No one here is going to know the answer why you were denied. You need to speak with Chase to find out the reason. It could be one of many things....credit score, credit history, debt to income ratio.

Posted by: Predatorprey on 2008-06-12, 18:24:18

The amount you own might be higher than the actual value of the car. AKA "Upside Down " Sometimes requirements are car can't be older than a few years old ect.. Any additional info on loan amount and aprox car value?

Posted by: Sly on 2008-06-12, 18:41:05

A W is correct in her answer. I say, it is most likely your risk ratio that prevented the refinancing. Credit firms offer different cards to different risk factors. You probably did not qualify for refinancing as a results of cresit score, history in combo to risk. 10mths to a creditor is a short period of time & may not be considered a long enough time to establish a credit history with their establishment.

Posted by: mariko m on 2008-06-12, 18:54:09

It can really save you a lot of running around to just get a car loan price online to see what todays rates are. You might be pleasantly suprised. Also if your credit is not the best, a lot of online loaners are more able to work with you. What I always tell folks is that an internet quote at auto.lowratetoday.com is a no brainer.

Posted by: kapn on 2008-06-12, 19:00:18

Not enough info.........why were you denied?

Posted by: Bob on 2008-06-12, 20:06:44

When you apply for a loan, you are entitled to a written response. If the response is a denial, then the letter will contain the reason. Did you throw yours away with the junk mail? Call them and ask them for another copy.

Posted by: Brown C on 2008-06-12, 21:36:32

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