I had filed BK 7 9/2012 and it was discharged 12/2012. I made the mistake of buying a car before the BK was discharged. So with that, I was financed for 2012 Chevy Cruze, $20,000 new. I have 6 months of paying $470/mo @ 18% (500 scores at the time). I am about $1500 upside down in it. Just a week ago, I applied for a refi at my CU, they told me my EX was 620, qualifying me for 9% and 110% value of the car (about $19,800) but they denied the loan b/c BK and so did Chase, and CapOne. I decided to try one more CU and I found out yesterday that I was approved! I am going in and signing the paperwork for 9.25% (I know, it's not great but it's better) and 110% value of the car which leaves me paying about $500 towards the negative equity. This saves me about $110/mo! I'm so excited!
So anywho, what I am wondering is how might this change my credit? I am assuming it'll show off a paid loan and a new account. I assume my score will drop at first b/c of the new account but will it be a lot better in the long run? I have about 2 years before I want to buy a house so inquiries and new accounts aren't a big concern for me right now.
Starting Score: TU488 EQ470 EXFAKO585
In the long run it won't be a problem.
Just get that car paid off before the mortgage app.
