Why will noone approve me for an auto refinance loan?
Question by Danielle B: Why will noone approve me for an auto refinance loan?
I have a decent credit score (650-700), lived at my resident long enough, been at my job long enough (almost 2 years) and make more than enough money to get a loan. I have paid on the car for 7 months on a 6 year loan. The interest rate is over 20% right now and have an excellent payment history on all my accounts/credit cards. So far, most reputable financing companies have rejected me online. I will soon go to banks and credit unions. Any suggestions?
Best answer:
Answer by greasymadness
That's just the way the credit markets are right now--very slow. I have a friend who was turned down for a 3000 dollar dental loan. She has a credit score of 760 and makes 85000 a year. If credit markets were normal, she would have had no trouble getting this kind of loan.
A lot of banks are holding bad assets right now. However, nobody knows who is holding what, so any one of them could go bust at any time. As a result of this lack of information, banks are lending very warily to each other right now. As a result it's tough to get traditional financing for anything other than a first-time home purchase right now.
You might want to try going through prosper.com. Tell your story and see if you can raise the cash. Otherwise, you may just need to find a second source of income until credit markets improve.
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