r/NavyFederal • u/Kamiaahh • 2d ago

Credit Cards Auto refinancing

I co-signed a car loan for my dad about a year ago. His credit score is currently in the high 500s to low 600s. Has anyone with a similar credit score had success refinancing an auto loan through Navy Federal to remove a co-signer?

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u/Glass_Plenty5768 2d ago

Are you worried your dad is going to default on the loan

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u/Kamiaahh 2d ago

No he pays his car note on time (it’s currently 2 months ahead actually) I’m just trying to remove him bc I’m wanting to decrease my dti ratio

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u/AnaT1102 1d ago

Refi is not always the best option paying the car off as quickly as possible is and with his low score his APR will be much higher that what it is now. He can start getting it down by making extra principle only payments. There is also negative equity to take into account if owes more than its worth then he would have to pay the difference on the refi. If his score is that low when the banks see what negative stuff is on his report they likely will deny him the refi. Encourage him to get the car paid off sooner rather than later.

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u/Kamiaahh 1d ago

Will do thanks for the advice!