Reply
Contributor
UnderEstimated
Posts: 130
Registered: ‎04-16-2007

Aquiring an Auto Loan 4 Months Post-BK

4 months ago, my BK was discharged and I have began rebuilding my credit through a secured loan (from my CU) and a secured credit card through Capital One.  I never thought I'd be in this situation, but long story short, my father basically committed identity theft and ran up nearly $27K in debt while I was working overseas.  I attempted to begin a case against him, but he is no where to be found.  I hold a security clearance and I was practically forced to file for a BK to eliminate my debt and keep my clearance.

 

So my credit is around 525 right now, but my wife has a score upwards of 730.  Her income is rather low; around $7000/yr, but mine is $65000/yr without including my travel pay.  We're looking at purchasing a larger vehicle and the models we're looking at are around $37,000-$40,000.  So basically it comes down to, she has the credit score, and I have the proof of income.  We can put down $10,000 without any problems, maybe even $15,000 depending on when we purchase the vehicle.  She also has a current car loan through Honda.  The original car loan amount was around $24k, but she owes less than $5k right now.

 

I've been trying to look into financing options, but I don't want to go around pulling our credit left and right.  Can we get decent financing through good banks/lenders?  Is there hope on getting a decent APR?  I understand we may not qualify for the lowest, but I receive pre-approved offers in the mail for $30K loan @ 19.9%APR and that's not the route I want to go...

 

Thanks in advance.

Contributor
UnderEstimated
Posts: 130
Registered: ‎04-16-2007

Re: Aquiring an Auto Loan 4 Months Post-BK

Not that it'll make a huge difference, but with the loan and CC reporting, I just pulled my EQ report and it's at a 607.

Moderator
Revelate
Posts: 8,138
Registered: ‎12-30-2011

Re: Aquiring an Auto Loan 4 Months Post-BK

The pre-approval offers generally don't count co-signers.

 

If you and your wife are planning to get this together, I'm certain there's some method to make it work (either you primary / her secondary, or vice versa) and get both the income and her better score counted.  Someone with more knowledge on the workings of co-signed loans would be better able to give you a breakdown there.

 

The biggest point you have in your favor is the large downpayment, bigger is better, and it's absolutely your friend in this case.  1/3 down can get you pretty much financed anywhere, though the APR may not be to your liking.  

 

Regardless, see about doing a joint loan (co-signed or whatever) with your wife, and you can probably do better.  It's an unforutnate situation, but there's not a lot you can get done in a short time period if you need the vehicle.  Depending on what loan rate you can get, you may want to do a cheaper  car while that BK continues to age and your credit score starts to recover, but with the hefty cash in hand for a downpayment you should be able to make something work.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 703, TU 708, EX 702* (05/30/14, EX older)
Goal Score: 700 in all three (01/01/15)


Take the myFICO Fitness Challenge
New Visitor
Tomeygun
Posts: 1
Registered: ‎03-02-2012

Re: Aquiring an Auto Loan 4 Months Post-BK

If you go to a credit union they will use the higher of the two and both income sources.

I have worked at 2 credit unions and both did it that way.

 

Problem solved.

Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Aquiring an Auto Loan 4 Months Post-BK

So, do you have a police report or something of that nature? Seems ridiculous that these accounts which are not
Yours are reporting at all!

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
New Contributor
zan987
Posts: 51
Registered: ‎09-27-2011

Re: Aquiring an Auto Loan 4 Months Post-BK

+1


Starting Score: 590
Current Score: EQ:665
9/05/12; EX: 656 7/10/12; TU: 641 8/15/12

Goal Score: 680


Take the FICO Fitness Challenge
Contributor
UnderEstimated
Posts: 130
Registered: ‎04-16-2007

Re: Aquiring an Auto Loan 4 Months Post-BK

My credit union seems pretty strict.  They didn't allow me to get a secured credit card (even with over $10K in our savings with them) and they wouldn't allow me to be a joint applicant for a credit card through them with my wife.  They said I need to wait 9-10 months, and the loan officers are well aware of my situation.  I don't think I could get a car loan through them until 1 year has passed from my discharge date.

 

As for the police report, yes I have that for both the racked up debt and damages to my personal vehicle.  It's a huge mess, or I should say it was a huge mess.  But only 2 of my accounts were compromised and the rest were ok.  They report on-time payments and balances at $0.  They are all closed.  The 2 compromised accounts (1 being AMEX for the amount of $19K) report 'Disputed by account holder' and 'Included in bankruptcy'. 

 

Will it make that big of a difference to have those 2 removed?  I still have the BK and there is no taking that away.  I didn't have a choice, both my attorney and investigator for my clearance told me I legally had to file my BK to eliminate the debt or risk losing my clearance, which in other terms, risks my career.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+