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Posted in Auto Loans
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QBV

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APR & Monthly Payment Spiked After Adding Mom as Cosigner. Why?
I applied for a Capital One Auto refinance loan and got approved for a 38 month term with a 9.16% APR and a $314 car note. (I'm looking to refinance the loan from my mother to myself.) However they told me at Capital One they dont allow people to switch loans from one person to another so I'd have to reapply with her as a cosigner. Once I did my APR spiked to 15% with a 38 month term and a $344 car note. Mind you she makes great money and from what I know her credit is much better than mine. My FICO is 574. Why did this happen? How could adding her as a cosigner make all of my rates go up so high if she makes much more money than myself and has better credit? Would it make more sense to just try to add myself as a cosigner with her current lender? I'm trying to build more credit, and putting the car in my name would be great since it's technically my car and I pay the note on time every month.

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What you are saying really makes no sense. I would contact a superior at Capital One to see what is going on. I am pretty shocked that they gave you a 9.16% loan with a score of 574. That would be a good rate for your situation. I don't understand what they are saying about "switching loans", you would be buying the car from your mother. Most people buy and sell autos that still belong to a lender everyday. Like I said try to talk to a supervisor at Capital One and if that doesn't get you any where you can look for another lender, but to be honest 15% for a 574 scores is not a bad rate and you will have trouble finding a better one.

Top Contributor
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1136 People Helped

I gave a reply, check for it tomorrow as Credit Karma flagged it for review probably because I used numbers in my post.

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