I wanted to share specific additional information so that it can help other members. Whether you have filed a bankruptcy for medical reasons or any reason a bankruptcy is still a bankruptcy to the lender. After the discharge of a bankruptcy the finance department wants to see what credit that you have reestablished. It is not just one credit card account. You will need to have at least 3 open trade lines. One open trade line is one account. Now paid off loans that have been recently been paid off in full do count. If you have had any vehicle that was repossessed or was included in the bankruptcy then you will have to wait a minimum of 2-4 years. To the auto lending industry you are too much of a big risk.
Here is what is on my credit report when I just got approved about a week a go.
CHAPTER 7 BANKRUPTCY FILED 12/1998 MEDICAL
CHAPTER 13 BANKRUPTCY FILED 4/2003 MEDICAL-CONTINUATION FROM CH 7 BK
3 REVOVLING ACCOUNTS ATATCHED TO CH 13 BANKRUPTCY
So there are a total of 5 negative accounts (2 public records & 3 late accounts)
Chapter 7 will be deleted off in 3 months & chapter 13 will be deleted in 1 yr 8 mths
POSITIVE ACCOUNTS
3 OPEN REVOLVING ACCOUNTS (NEVER LATE-PAID AS AGREED)
4 OPEN INSTALLMENT (PERSONAL) LOANS (NEVER LATE-PAID AS AGREED)
4 CLOSED INSTALLMENT (PERSONAL) LOANS (NEVER LATE-PAID AS AGREED)
1 CLOSED SECURED CREDIT CARD-(NEVER LATE-PAID AS AGREED)
REVOLVING ACCOUNTS HAD LOW BALANCES OR WERE PAID OFF IN FULL
INQUIRIES
0 TRANSUNION
3 EQUIFAX
2 EXPERIAN
The amount of inquiries for each credit bureau was 3 or less.
NO COLLECTION ACCOUNTS
NO COURT JUDGEMENTS
711 AUTO CREDIT SCORE
673 TRANSUNION FICO SCORE
671 EXPERIAN FICO SCORE
656 EQUIFAX FICO SCORE
For those not familiar with the auto credit score here is how it works. It looks at the following:
Have you ever had a vehicle loan?
Have you included a vehicle loan in a bankruptcy?
Have you had a vehicle repossessed?
Have you ever been late one or more times on your vehicle loan?
The auto score is different than the fico score. On mine I was up 38 points compared to my fioc score and with a 711 I was able to get approved.
Note: If you do not include a vehicle in a bankruptcy by reaffirming the the acocunt, menaing that you will still make regular payments, your future relationship with the dealer will be looked at differently. How differently is up to the dealer.
I wanted to share this with everyone so that it can help you. Please be aware that when you start over again after a bankruptcy and want a car or truck loan, it is not going to ahppen over night or within a few months. You have to work hard at it. This will most likely mean to go out and secure credit cards & loans with cash.
