Auto Loan and Deployment?

[Mrs. LA]

We just purchased a vehicle, my husband has horrible credit and we could only get a loan thru M.I.L.E.S. they have a ridiculously high interest rate 18% But we thought about keeping the vehicle for a year and I'll try not to put many miles into it so when can trade it in in a year and get a loan thru Americas Credit Union for a diffrent vehicle.

My DH mentioned a couple days ago that he can have his interest reduced during deployment, Is this true? Or did he hear it wrong?

I also don't know if his pay will be alot diffrent or just minimal while he is deployed.

TIA

[carolinagirll]

Is your credit better? Could you have it in your name?


18% is so HIGH. See what USAA gives you if your guys are with them.

I have never had someone tell me the loan company went lower on the rate while someone was deployed but you could give it a shot.

[J.Ski]

I don't think they have to lower the interest rate unless it was purchased before he got in the military but I'm not positive. It's because of the Service member Civil Relief Act. It can't hurt to ask though.

ETA: For pay while he's deployed federal taxes won't be taken out, plus separation pay of $250 a month, Hostile Fire Pay of $225 a month, Hardship Duty of $100.

[Mrs. LA]

Thank you both, my credit went to hell and stayed there after my 1st divorce. So my name would've been worse. I don't know where he got this idea from, but I think I might go ask with our bank Americas credit union before he deploys. Thanks again for the help.

[*Pamela*]

Usually the loan has to be taken out before entering the service for the SMCRA to be used. But it doesn't hurt to call and ask.

Just food for thought too.... in just a year, with that high of an interest rate, you may be upside down on your loan. Idk what your payments are or how new the vehicle is, etc... but I just wanted to mention that.

[Mrs. LA]

We tought of that, the van is 08 and we got it for 14k with tax, tabs and licensing with low miles. So i'm trying to keep milage low and pay extra on the Principal. Hopefully by the time it comes down we can either trade it in or refinance it and give it to my MIL.
Thank you, alot of people would keep that to themselves and not care if the person dug themselves in a huge hole. I really appreciated.

[Mrs.Highfill]

Have you tried through a credit union like Navy Fed? They are really helpful at helping people with bad credit, you can always refinance the loan you have now through a company like them.

[rcwant2be]

I would talk to your cu and usaa (def join!!! Can't stress that enuf.) About taking over the loan. You can set up an alotment so the money goes straight to them.

I doubt you'd be able to get out of the loan after a year.

While he's deployed, work on both of your credits. Pull credit reports, see what's delinqent and get it taken care of.

[*Pamela*]

Originally Posted by Mrs. LA We tought of that, the van is 08 and we got it for 14k with tax, tabs and licensing with low miles. So i'm trying to keep milage low and pay extra on the Principal. Hopefully by the time it comes down we can either trade it in or refinance it and give it to my MIL. Thank you, alot of people would keep that to themselves and not care if the person dug themselves in a huge hole. I really appreciated.

No problem...I hope it all works out for you

[carolinagirll]

Originally Posted by rcwant2be I would talk to your cu and usaa (def join!!! Can't stress that enuf.) About taking over the loan. You can set up an alotment so the money goes straight to them. I doubt you'd be able to get out of the loan after a year. While he's deployed, work on both of your credits. Pull credit reports, see what's delinqent and get it taken care of.

Yeah great idea about taking care of the credit reports now while he is gone you have extra money.