LendingClub.com Could Not Help Me Refinance My Car Loan. – Erik

“Dear Steve,

My situation revolves around my car loan. I got my loan back in July 2006, and the interest rate was high, understandably because I had bad credit. Now two and a half years later, it seems that it still is horrible, because NO ONE will refinance me. I tried LendingClub.com (I googled my problem, saw you recommended it to a contractor and I looked into it – minimum FICO too high for me), and nothing. LendingTree, nothing. I’ve scoured local credit unions, banks, my own bank, even relatives.

I’ve been making payments on time since my loan started and the lenders tell me I’m one of the their best accounts. I even spoke with my old rep and he told me since my account is so good, I could refinance with someone else because of my history. I’d qualify for “good rates”. NO LUCK. Last time I checked my FICO was close to 600 (590 i think), and while it’s not good, it’s not horrendous – ok, maybe it is.

Every website or offer or blog that tells me “we’ll help you get re/financed even with BAAAAAD credit”, I’m weary. I feel like I have a Scarlet Letter on my credit report. I’ve tried fixing errors but to no avail, so I feel the next option is to restructure some of my debt (which is only my $8k auto loan and $6k student loan, and one credit card) with fresh numbers and lower payments.

This situation has me so stressed out its ridiculous, I have until mid-November to figure it out. I requested a deferment from my current lender due to surgery expenses (I’m skipping October’s payment).

From what I’ve read, you seem like one of the good guys. People trust you, and I know you’re coming from where I am, because you’ve been there. So I know you’ll straight-shoot me on this. If I can, great. If I’m barking up the wrong tree, that’s okay too. I just want to know if I need to stop looking. Sorry this “situation” has been so lengthy, I thought I’d lay it out there though.I hope you can help me, Steve. Thanks.

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Where can I go to get my auto loan refinanced, will anyone pay attention to my 2.5 years of solid payments, is it better to refinance (than to take out say, a personal loan and payoff), and if not, what is the best route to raise my score to qualify for a refi in a few months? Thanks.


Dear Erik,

Well thanks. I try hard to be one of the good guys.

LendingClub.com is a great place to find financing for a number of issues, but everyone has their limits and credit scores seem to rule the world.

I think the logical first step is for you to get a consolidated credit report with the credit score option. This will tell you everything that is being reported about you. No one credit bureau has all the information on you. Creditors don’t report to every bureau.

By ordering the credit score option with your report is will clearly state why your score is what it is. Once we at least know the ballpark where you score is dinged, I can give you a plan to address that. I admit I’m a little perplexed at the moment since you have three loans and you’ve done a great job paying on the car loan. So something is out there bringing down your score, but we need to uncover what it is.

Don’t apply anyplace until we get through the credit report and credit score investigation. Continued applications will bring your score down. It will look like you are applying for credit and nobody will approve you. That does not make you credit attractive.

Some things that might be happening are serious. You might have an old outstanding account showing as in collections. Maybe you are a victim of identity theft. Getting to the bottom of your current score is very important for us to do, right now.

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Does that make sense? Do you agree with this strategy?

Please update me on your progress by The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

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