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What's a reasonable interest rate?
I have a great credit rating but I can't find anyone to give me a damn auto loan. My car is still in my former name and my ex-husband's name, and I still owe about $10,000 on it. I'm paying it religiously, but he's engaged and he wants to buy a house with his fiancee, and he's riding on me to pay off this loan and get a new one that's in my name only.
Sounds reasonable, but I can't find anyone to do a damn auto loan. My bank offered me a personal loan - at an interest rate which would START at 12.86% and could be even higher! That sounds insane to me. That adds another $1300 to my debt and I'm REALLY trying to get out of debt in a hurry.
I am really stressing over this. Is there anything else I can do? I've been researching this for over a month and I can't find anything better. If I do have to go with this ridiculous personal loan, would I be remiss in asking HIM to pay the $1300 interest since it means so damn much to him (and he makes $40-50K anyway while I live on donated food and macaroni and have to share an apartment!)?
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Re: What's a reasonable interest rate?
if you have great credit, you houldn't have any problem getting one of thsoe credit cards with a low introductory APRs. The introductory periods can be pretty long, so you could have a year to pay it off and then a reasonale rate after that. Car loans are in the 6s and 7s now. Refinances are slightly higher than that.
if it's that important to get out of debt, you really should work extra shifts. It's not fun, but all that money you save in interest will make it worth it.
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Re: What's a reasonable interest rate?
I would love to work extra dance shifts. Unfortunately I have a demanding pre-existing career, and I can't dance forever, so 70 hours a week (for $650 a week, no less) it has to be. I dance one or two night a week but haven't been able to swing more than that, and at the club I've been at, $150 is a good night. I'm moving to another club though.
I don't think a credit card would give me a starting available credit line of over $10,000. I HAD that much in credit when I was married, but he kept all the cards but one and that one only has a few thousand available beyond the $5,000 I owe on it. That $15,000 is all my debt but I sure would love to pay it off post haste. An additional $1300 to refinance my car seems insane to me.
What should I do? I swear, whenever I think about this debt situation I just want to jump off a bridge. I can't stop crying about it all the damn time and now he wants to add $1300 to it just so HE can move on with his perfect fucking life and be a home-owning husband and father. How very fucking nice.
Seriously, he makes plenty enough to live on and has a free company car and is about to buy a house in the suburbs, and he has no debt beyond the mortgage he's about to sign. I know he's got a wedding and all that too, but since I'm fine with leaving the car payment where it is and HE wants it changed, would I be a bitch if I asked him to pay the new interest on the refinance? We're still friends, but seriously, this seems like a slap in the face to me after he just (probably inadverdently) insulted me the other night. I don't see why I should take on so much more debt so he can go be Mr. Perfect.
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Re: What's a reasonable interest rate?
well, if you must work your $650/week job and you have little time left for dancing, then that's that, but perhaps it's worth reconsidering your non-dancing job? Money isn't everything, but financial independence feels really good.
I think you should try to get a credit card.....even if it's $5000, it's still better than paying that high interest rate on the whole amount. The last three times I applied for credit cards (albeit I don't do this very often and I am not carrying a CC balance), I got approved for lines of credit over $10,000.
As for asking your ex-husband. I guess it's an option, esp if it's going to cause you such a huge financial burden.
Out of curiousity, aren't you already paying interest on the loan?
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Re: What's a reasonable interest rate?
Yes, I'm paying interest on the current loan. If I got a new one, that interest would become principal, and I would owe more interest on the new total.
It's tempting to take off and dance full-time for the financial independence, but I've sacrificed everything I've ever had for the film industry and I've been in it for two years. I'm almost union-elegible and can't drop out now. Anyway I'm in the middle of a show now and couldn't quit until it finished in January.
I'm going to tell him I'll get the personal loan, but he can bloody well pay the interest on it. It's for HIS benefit and I don't see any reason why *I* should get hit with more debt so that he can go start his happy new life. I think if he really wants his name off the loan that badly, he can pay for it.
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Re: What's a reasonable interest rate?
I have some questions for you...
1.) Do you have credit? You said that everything was in your husband's name...so if that is the case, then you may not have much credit at all.
2.) Great credit is considered 660 and above. If it's below that, it's ok...much below that and you're shit out of luck.
3.) One of your problems may be that credit card that only has a few inches of movement room and your income. If you have great credit, but a high DTI, then lenders may give you a higher rate. At that point, they put you in the High Risk for Default column.
4.) Have you considered trading the car you have in for a new car? Even if it's just an "even exchange" type of deal, it's easier to get financing on a "new" car than it is to get refinanced on an older car.
5.) Did you keep copies of all of the checks you used to pay the car? If the car is primarily in your husband's name, then you have done his credit good...but it'll help you if you have proof that you made all of the payments...and on time...
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Re: What's a reasonable interest rate?
Good points to consider, Venus. I think you're right about the DTI making it higher. The last time I checked my credit rating it was 780, but I do have a high DTI and that's probably it.
I don't want to give up this car because I know how reliable it is. The last thing I need is to drive a hoopty that's going to die on me at 4 a.m. in downtown Los Angeles. I put about 20,000 miles a year on this car so I really need a reliable vehicle. I bought this one in 2003 with 8 miles on it, and I take good care of it (I spend more on that car than on anything else, including rent), so I know I can trust it for several more years.
The current loan is in both our names, so I've been building both our credit while paying for this car. Which IMO is another reason that *I* shouldn't have to pay the interest on this new one so that *he* can get a house - I've been improving his already perfect credit score for more than a year (we divorced last August).
I just want to run away to the mountains for the next few months or so and find a good club where I can make a ton of money and pay off all my $15,000 debt (car and credit card) in a few months. And in the meantime I can enjoy nature and trees and breathing real oxygen and all those things I used to do. L.A. is eating my soul and this stress isn't helping.
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Re: What's a reasonable interest rate?
my first car loan was like that....where they calculated the interest and you had to pay it off first, then the principal. Very shady and pissed me off when I tried to sell it two years later and realized I was upside down on the loan.
It's okay to sell the car. While it may be a good, reliable car, it's going to cost you a lot of money in interest. There are plenty of reliable new and used cars out there. I bought a car yesterday, and I got a 1.99% interest rate. It was from Infiniti, but I know it applies to most 2005 Nissans (including the Sentra). I'm sure other car manufacturers are doing this kind of thing to get rid of their '05 inventory. I know they sometimes do this rate for certified pre-owned cards too.
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Re: What's a reasonable interest rate?
I don't know when I can go car-shopping and I couldn't afford all the costs of buying a new one in California. I just want to pay off this one and be done with it.
The more I think about the way he's been trying to use me and treat me lately, though... I am in no mood to do him any damn favors. As a friend of mine put it, "Fuck him and his fiancee and her kid and their house." HE's the one who makes a ton of money at a cushy, 30-hour-a-week job, has no debt, and is buying a 3BR suburban home. Meanwhile I work two jobs for over 80 hours a week, share an apartment with two other people, and eat generic macaroni and cheese when my job isn't feeding me for free. There is no damn reason I should spend a single penny so HE can buy a house!
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Re: What's a reasonable interest rate?
With a credit score of 780, you should be able to get a lower rate, and financing through just about any company out there...
Have you checked with the company that you already finance the car with? They may be willing to re-fianance the car into your name...
Another thing...you may have a high credit score, but not enough credit history. If you had 3 open accounts for 1-2 years...that would give you a fairly high score, but lenders want to see more history...that and the DTI could be what's holding you back.
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Re: What's a reasonable interest rate?
I checked with them and they won't refinance it for me. I've got plenty of credit and it's all good, but it's the DTI that's killing me. I WANT to get out of debt and I'm trying, but I can't get out of debt with these interest rates. The one on my credit card is 17%, for heaven's sake! That's insane but they won't lower it any further. I just want to pay it off so I can cancel it but again, it's hard to pay it off with that kind of interest rate.
Unfortunately it seems the ex has discussed the issue with a lawyer who says he is the legal owner of the car because it's primarily in his name and I'm just a co-financer. He says if I don't do this, he will sell the car and we'll have to split the difference because it won't sell for enough to cover the loan. And then I'll be stuck paying that AND having no car. So I have to get this loan.
He says he'll pay the interest - to the bank, not to me, and only after I've paid off the existing loan and faxed him the papers showing what the interest will be. And then, he hopes we can put all this behind us and continue to be friends. WTF? I don't know how I'll be then, but right now after hearing all that, all I can think is FUCK YOU!
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Re: What's a reasonable interest rate?
Uhm, I guess I don't see why he needs you to be removing his name if it's positively affecting his credit. If you are doing what you say you are and making the payments then to buy a house all he has to do is get a letter from the bank showing you make all the payments as agreed. You can expidite this request by requesting a payment history on the loan and give him that with the banks letter, or his lender can request this.
If he was the original borrower and he is on title to the car then he can legally sell the car out from under you if you don't come to agreement on this.
Can't your BF co-sign, or a parent. With a 780 score I have never heard of anyone not being able to refi unless they can't prove any of their income. Try a credit union instead of a bank, sometimes they are way more flexible. And truth be told, if you refi to a used auto loan (my credit union is advertising 5.9% for a used auto) your payment should go down a little and therefore would effect your DTI in a positve way.
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Re: What's a reasonable interest rate?
Thanks, Phedre. What kind of credit union should I be looking for? I thought you had to belong to a credit union in order to use them - is that not the case?
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Re: What's a reasonable interest rate?
Honestly, I think your best option is to walk away from the car. I don't think he will let it get repo'd cause he wouldn't want that on his record because of his immediate intentions. Let him eat the shitburger.
There is still great financing available, start over.
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Re: What's a reasonable interest rate?
...or at least tell him that's what you're going to do!
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Re: What's a reasonable interest rate?
I can't walk away from the car. Selling it wouldn't pay off the loan and I can't afford to buy a new one here in California; they are too expensive and the registration, smog checks, etc. are more than I can afford. This car is a huge fucking hassle and it accounts for about half my expenses, but it beats the alternative.
I just feel betrayed. We were such good friends, I thought, and I can't believe he is treating me this way. He says he'll pay the interest but I have no way of legally ensuring that he does, and he's being such a jackass about it.
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Re: What's a reasonable interest rate?
Or threaten to walk away from it if he forces your hand on refinancing it.
Tell him you can not get the rate that you have currently due to interest rates increasing and that you have obviously been making faithful payments on it so it isn't harming his credit. Unless he is having a problem qualifying with his debt, that would be the only reason that he really NEEDS you to refi. Even then, the letter and payment history should suffice for a lender doing his home purchase.
Here is a site you can go to to look up CU's in your area. Most that aren't industry related will only require you to maintain a small savings account at their institution.
http://www.bankrate.com/brm/news/cu/states/CA.asp
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Re: What's a reasonable interest rate?
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Re: What's a reasonable interest rate?
this is stupid because you will sabotage your own credit by doing this. If you really have a 780 score, you should be able to finance anything at anytime. You need to ask for stated income loans-you tell them how much you make and they don't verify. You can do this if you really have that high of a score. keep looking, go on-line to find a lender if you have to.
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Re: What's a reasonable interest rate?
If your not willing to walk away from it you need to have him title it over to you ASAP. Why wasn't ownership sorted out during the divorce? Don't bring the car any closer to being rightside up without ownership.
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He says he'll pay the interest but I have no way of legally ensuring that he does, and he's being such a jackass about it.
Making him pay a down payment towards the refi would probably fix that, and get you a lower rate. From the lenders standpoint to cover the risk on a used, upside down with zero down (presuming since you alude to having some CC debt and think you can't afford a new car) autoloan they need to make XX%.
Also, I certainly hope you're not looking at this based on I've paid X thousand dollars for this car, I'm keeping. You need to think about it based on your current situation.
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Re: What's a reasonable interest rate?
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Originally Posted by scorpio
this is stupid because you will sabotage your own credit by doing this.
Stupid is as stupid does. Kind of like saying soemthing is stupid and stating the obvious reason like noone else knew that.
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Re: What's a reasonable interest rate?
^ A little hostile, aren't we?
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Re: What's a reasonable interest rate?
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Re: What's a reasonable interest rate?
Lease a new car. He will no longer have a interest in the car, and you will have a better car under warrenty!
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Re: What's a reasonable interest rate?
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Originally Posted by birdguya
Lease a new car. He will no longer have a interest in the car, and you will have a better car under warrenty!
she already said she doesn't want a different car because she has invested so much money into the one she has.
And who is the troll? Scorpio? He's been here a long time and gives lots of good dollar den advice. He just doesn't sugar-coat anything!