How soon should i pay off a car loan? (brothers death)

For just about anything you want to get off your chest about credit cards.
6 posts
User avatar
Centurion Member
Centurion Member
Posts: 1105
Joined: Thu Jun 27, 2013 12:39 pm
Location: EARTH -CA

How soon should i pay off a car loan? (brothers death)

Postby nismoZtuner » Mon Sep 14, 2015 4:17 pm

So on July 31st two of my brothers had an accident while heading to work- both passed away (16 and 20), one of them had a car loan- I took over his car loan so that we can keep his car(not the one with the accident), I am able to pay of the loan right now but i have never had a car loan under my name.. i was approved and my APR is at 2.49%

my brother still owed $9,500 on his car loan- The credit union who i decided to go with is having my monthly payments be 215/monthly.

something about the old union my brother was with, is that they wouldnt really help us. When my parents and i walked to talk to someone in the union the loan officer was more interested on getting us to refinance than to give us information. She told us "I can not give you any information on our customers account, the only way i would be able to do that is if one of you refinance"- i already had the death certificate in hand and still nothing. Days before that when the loan officer was not there another lady did give me my brother account number and WAS BEING HELPFUL, she even suggested on things we should do about his property - i did not tell the loan officer someone else gave us info because- i did not want to get them in trouble.. but wow...

I was thinking about paying off the car in the next 6 months- is that good?
Last edited by nismoZtuner on Mon Sep 14, 2015 5:02 pm, edited 1 time in total.
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)

Platinum Member
Platinum Member
Posts: 66
Joined: Sat Apr 02, 2011 2:28 pm
Location: Miami

Re: How soon should i pay off a car loan? (brothers death)

Postby dfm990 » Mon Sep 14, 2015 4:57 pm

Idk how to go about the situation, I'm very certain someone will give you some good advice in the next couple of post, but just wanted to say sorry for your loss.
Amex Gold NPSL (35000 Approved)(11/13)
Discover It $23500 (12/13)
Bank of America Cash Rewards $13000 (3/13)
Amex BCP $12000 (12/14)
Walmart Store Card $10000 (2/10)
Capital One Platinum $2000 (3/11)
Chase Slate $1000 (1/16)

Centurion Member
Centurion Member
Posts: 465
Joined: Sat Sep 15, 2012 1:15 am
Location: Los Angeles, CA

Re: How soon should i pay off a car loan? (brothers death)

Postby Gamma » Mon Sep 14, 2015 6:01 pm

Sorry to hear about your loss nismo. I find myself thinking about this exact situation every now and then. I handle all my family finance and sometimes come to think what would happen to my current car loan and home loan if I die. The loans are under my name, but my family members help pay for them. Car loan is almost half paid and wonder of I die, would the bank who financed the car just take the car back or give my family members a chance to claim responsibility for it. Sorry I can't help much but hopefully someone can.

User avatar
Centurion Member
Centurion Member
Posts: 4339
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: How soon should i pay off a car loan? (brothers death)

Postby CarefulBuilder14 » Mon Sep 14, 2015 7:08 pm

My condolences for your loss.

1. I don't know how CA inheritance laws would work, or what estate measures, if any, your brother had in place for his car. It seems possible that while/after you pay the car off, someone else could try to lay claim to the car (an estranged relative, perhaps). It sounds like the credit union is only concerned with seeing payments continue to roll in.

2. The FICO-maximizing solution might be to stretch the payments out over time, to get a higher AAoA. I don't know the terms of any penalties for paying the loan off early.

If I was in your position, though, I would want to just pay it off ASAP and be done with it. It would make me feel good and be a good-enough credit/financial situation.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

User avatar
Centurion Member
Centurion Member
Posts: 1217
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Re: How soon should i pay off a car loan? (brothers death)

Postby Vattené » Wed Sep 16, 2015 5:02 pm

I'm very sorry for your loss as well.

I agree with CarefulBuilder14 and would recommend paying it off early (provided you're not currently paying off any other loans with a higher APR). Car loans don't typically have prepayment penalties, but that is something you should find out for sure beforehand. Stretching out payments may get you a higher FICO several years down the road once the impact to AAoA takes place, but paying it off early will save you real dollars and cents upfront. Plus, if you manage your credit responsibly, that far down the road your credit score will likely be at the threshold where you'll get the best terms on any loans anyway, rendering a potential score increase of no real-world value. If you can comfortably pay it off early, get it out of the way and save yourself some money.

My condolences again. I hope you're doing well considering how recently their accident occured.
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
My Cards: Barclay Arrival+ | Discover it | Amex ED
AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

User avatar
Centurion Member
Centurion Member
Posts: 630
Joined: Thu May 10, 2012 10:10 pm
Location: North Los Angeles County

Re: How soon should i pay off a car loan? (brothers death)

Postby Snowman » Wed Sep 16, 2015 9:24 pm

I'm sorry for your loss Nismo :(. Me and a few of my friends buried a very close friend of ours just recently, he took his own life by od'ing. It doesn't compare it losing your brothers tho. May they RIP.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.

Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 3 guests