In December this member came in to see about getting a credit card due to some unexpected medical expenses in his family that were starting to add up. We processed an application for a Visa Gold and he was approved for a $500 limit – while this helped, it was not quite what he was looking for. He recently lost his home due to foreclosure and was in the process of rebuilding his credit. During our conversation, he mentioned an auto loan he opened with a financing company to aid in the rebuilding process. At that point the light bulb went off! I offered to refinance his auto loan, with cash out for the equity in his vehicle, to help with the medical expenses that were piling up. The member was excited to hear he had options and was even more excited about the opportunity to get away from a nasty 25% interest rate.
He was approved for the auto refinance, which dropped his rate from 25% to 8.24%, and was able to get a payment lower than what he was currently paying (even with the cash out on top of his loan). The best part? He now has some additional funds for the holidays and any additional medical expenses that may pop up.