After Chapter 7 Car Loan and Rebuilding

[Anonymous]

This board has a weath of knowledge and has been a big help for me during the process of BK Chap 7 and rebuilding so I thought I would share some hope with everyone. Filed Chap 7 in April 2015 due to a divorce and job loss and health issues. My lawyer asked me why I waited so long? Tried to fix it all myself but was about 125K in debt. Discharged all but 1k and was finished by late June. Now starting the rebuilding process. Got a 400.00 Fingerhut card....but who can afford to buy this stuff? Oh well I will use it once just to have something on my report. Also got a Credit One bank card with a 300.00 limit. Easy to get. Use it for gas and pay it off every month. My scores after BK have climbed from the low 440's to as high as 695 on Experian in July 15. Now in early August Im at 683 Experian and 674 Transunion. So reading all the recommendations and now looking at my 28+ year credit history that is gone, now it shows about 1 yr, I knew I needed to have good payment history moving forward to rebuild. Car loans are supposed to help, so even though I wasn't planning to get a car until next spring, I couldn't stand the curiosity of whether or not anyone will finance me. So I went online and of course RoadLoans gave me 23K with no down car loan at 17%. Off I go to Carmax. They rerun my credit and it takes forever for all the banks to run me thru.....I wait, I wait. I'm looking at a 2014 Hyundai Santa Fe that's about 25K and over my approval amount. Still wait. All the banks decline but Wells Fargo is still in a holding pattern. After what seemed like an eternity, they blow RoadLoans out of the water and give me the 25K with 0 down and 10% interest! So I'm moving along in the process of rebuilding. Figure I will refi in about a year for lower interest thru my credit union.

[Anonymous]

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@Anonymous wrote:

This board has a weath of knowledge and has been a big help for me during the process of BK Chap 7 and rebuilding so I thought I would share some hope with everyone. Filed Chap 7 in April 2015 due to a divorce and job loss and health issues. My lawyer asked me why I waited so long? Tried to fix it all myself but was about 125K in debt. Discharged all but 1k and was finished by late June. Now starting the rebuilding process. Got a 400.00 Fingerhut card....but who can afford to buy this stuff? Oh well I will use it once just to have something on my report. Also got a Credit One bank card with a 300.00 limit. Easy to get. Use it for gas and pay it off every month. My scores after BK have climbed from the low 440's to as high as 695 on Experian in July 15. Now in early August Im at 683 Experian and 674 Transunion. So reading all the recommendations and now looking at my 28+ year credit history that is gone, now it shows about 1 yr, I knew I needed to have good payment history moving forward to rebuild. Car loans are supposed to help, so even though I wasn't planning to get a car until next spring, I couldn't stand the curiosity of whether or not anyone will finance me. So I went online and of course RoadLoans gave me 23K with no down car loan at 17%. Off I go to Carmax. They rerun my credit and it takes forever for all the banks to run me thru.....I wait, I wait. I'm looking at a 2014 Hyundai Santa Fe that's about 25K and over my approval amount. Still wait. All the banks decline but Wells Fargo is still in a holding pattern. After what seemed like an eternity, they blow RoadLoans out of the water and give me the 25K with 0 down and 10% interest! So I'm moving along in the process of rebuilding. Figure I will refi in about a year for lower interest thru my credit union.

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Welcome to MyFico

Congrats on the new vehicle and thanks for sharing your story

[jkjklkjkl]

I reallhy think you should look at new 2015/16s. 2015s are going for that price, and you can negotiate even lower, and with Hyundia's lower credit tiers, you should be approved, and at a lower interest rate.

[Anonymous]

I get the impression that the OP has already bought the SUv from Carmax, so a new one is probably not on the table.

Congrats on the car, OP, and good luck with your rebuilding efforts!

And 10% is far better than 17% and if you can get a refi from somewhere like DCU, when you're ready, it would be at even lower rate.

GL