I got locked into this car in 2018. Back then, my finances were a mess and so was my credit. I was urgently in need of a car so I went to JD Byrider (first mistake). The vehicle itself was overpriced and they gave me almost 25% interest. In desperation, I signed off on it. Fast Forward to a full 2 years later: I still owe $10,800 on this car. Credit Karma values the car itself at $3,200. A 2012 Chrysler 200. My credit and my income is in great shape, and I've paid off all debts other than the rest of this auto loan. Credit Karma keeps recommending that I refinance the loan, saying that I can take the almost $5k interest down to only $500. Effectively lowering my payments by almost $90 a/mo. I'm currently doing biweekly payments of $204 plus their "insurance fee" of $40 biweekly. Plus basic liability coverage from allstate for $140 a month. I know, it's all terrible.
So I applied for their recommended refinance and within 24 hours I was denied. No reason given. I applied for a different one and was denied before officially applying. I just applied for rate genius and I'm hoping they take it but I expect that to be denied as well. Doing some research, I believe my loan is "underwater" or "upside down". Which makes sense, given how bad my dealership took advantage of my desperation.
Is there any way to remedy this situation to save me money? Or do I have to wait to refinance until what I owe is less than the car's value? I really don't want to stay in this contract through another $7,000. Thanks for taking the time to read!
Submitted August 08, 2020 at 08:53PM by high_defff https://ift.tt/3kqP6Se
