How much will a couple year+ old 30 day auto lates hurt me?

[roxxor]

Good evening all! Long story short, about a year ago I had 2 30 days lates with BMW Financial Services, in 06/12(which oddly enough didn't know show up on my report until the second one did) and in 01/13. In April 13, my dealer pulled EX auto fico was 571, just 3 months after the most recent late and with my CC util being very high on some cards. I tried to goodwill the 30 day lates to no avail.

My goal is to refinance or (preferrably) trade in my car sometime this spring, as the 14.99% I am currently being charged just isn't doing it for me anymore. By that time, I will have paid off/down all my CC balances and expect to be under 5% util. My Ficos now are in the mid-upper 600's and I'm hoping by then to be around 700.

My concerns are that I have heard some instances where if you had lates with BMWFS before, they will shoot you down for another loan. The other concern is how much the lates will still affect my auto enhanced score after a year and a few months. I know the formula isn't out there to be easily determined, but I figure if it was 571 right after and the rest of my profile has improved, then that score should hopefully go up as well. I will be putting down about 10-15%, and my overall DTI when I go to app will be about 20%, with the new car(as I'm expecting my payment to go up due to the cost of the new car) it will push my DTI to about 23-24%. My AAoA right now is about 1.5 years, and I'll be about 5 years out of CH7 with no other negatives since(other than the 2 30 day lates).

Any thoughts on the matter would be appreciated! Thanks!

[tony46231]

I have no idea but hopefully the 30 day lates hurt you enough in BMW's eyes to stop you from making more bad decisions.  Chapter 7 five years ago and CC utilization is way up?  Chapter 7 five years ago and you have two recent 30 day lates on an auto loan?  14.99% on an auto loan?  I realize that is probably due to the Chapter 7 BK, so deal with it.  Why did you even finance a car knowing that you were going to get screwed on interest?  Some people just never learn.  My advice is that you call up Suze Orman or Dave Ramsey and pose your question to them.  I'd love to hear that.  

Is this even a real question?  I almost don't believe it. 

[HoldingOntoHope]

To Tony - These forums are to provide helpful information in a friendly supportive fashion. An answer that is simply judgmental of another's decisions without answering the questions is not helpful. I understand we all have opinions and many of us showed up at these forums because we made uneducated and sometimes counter-productive decisions in the past. We are trying to help each other understand but in a friendly fashion.

To the original poster - BMW Financial is probably not going to be the best place to turn for a new loan. If you are planning on keeping the car you have now then looking for a refinance would not be a bad idea. If you have an established relationship with a credit union or bank then you may start with them to see what they can do. Even if you only reduce the interest rate a few points it will save you some money as you move forward. If you can take some time to let the negative information fall further back and continue to build positive history then your chances of a reasonable rate grow exponentially better.

Think about it from the lenders perspective for a moment. If someone presented a loan request to you with derogatory information in the not so distant past how would you respond? The BK especially is going to continue to be a major negative as long as it remains on your reports. The 30 day lates lose their major sting after a year but are still dragging down your score and your chances for a while. By the time they are both over two or three years old they will not have as much negative effect if there is positive information to overcome them.

Do some more reading on the forums and you may want to explore the Rebuilding your Credit forums to see how others have overcome their obstacles.

[tony46231]

To HoldingOntoHope:  Sometimes people need a wake up call to get them going in the right direction.  I have no disrespect for the OP as a person (perhaps the decisions he has made), but I think he is back to his old tricks, so to speak.  If there is anything to learn from BK, it's not to fall into the same habits.  OP has not learned this 5 years out of CH7.

Fact: He filed CH7, now has credit cards at a high percentage of utilization.  

Fact: THIS IS A BAD IDEA.

Fact: He filed CH7, got a high interest rate on a luxary car loan.

Fact: THIS IS A BAD IDEA.  

Fact: Now he wants to refi, because 15% isn't cutting it, and he is post 5YRS on a CH7 BK.

Fact: THIS IS YOUR PUNISHMENT FOR NOT PAYING YOUR BILLS and screwing over your creditors by filing BK.

The guy or ladie is asking about a refi on a high interest auto loan (that doesn't work for him/her anymore) five years after filing CH 7 BK.  And on top of that, he suggests upgrading his car.  LOL X 50.  Please tell me where I am out of line in my post?  This is ludacris.    

Solution:  Don't complain about paying high interest rates on an auto loan.  You should have bought a car with cash and drove it.  Stop living above your means and start paying your bills.  It's that simple.  

That is all.  

[Kratos-TM]

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@tony46231 wrote:

To HoldingOntoHope:  Sometimes people need a wake up call to get them going in the right direction.  I have no disrespect for the OP as a person (perhaps the decisions he has made), but I think he is back to his old tricks, so to speak.  If there is anything to learn from BK, it's not to fall into the same habits.  OP has not learned this 5 years out of CH7.

Fact: He filed CH7, now has credit cards at a high percentage of utilization.  

Fact: THIS IS A BAD IDEA.

Fact: He filed CH7, got a high interest rate on a luxary car loan.

Fact: THIS IS A BAD IDEA.  

Fact: Now he wants to refi, because 15% isn't cutting it, and he is post 5YRS on a CH7 BK.

Fact: THIS IS YOUR PUNISHMENT FOR NOT PAYING YOUR BILLS and screwing over your creditors by filing BK.

The guy or ladie is asking about a refi on a high interest auto loan (that doesn't work for him/her anymore) five years after filing CH 7 BK.  And on top of that, he suggests upgrading his car.  LOL X 50.  Please tell me where I am out of line in my post?  This is ludacris.    

Solution:  Don't complain about paying high interest rates on an auto loan.  You should have bought a car with cash and drove it.  Stop living above your means and start paying your bills.  It's that simple.  

That is all.  

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Dang....you are one cold dude. If this is your calm tone, remind me not to piss you off. LOL

[roxxor]

Wow, how about you back off with the assumptions. You don't know me, or maybe the fact that the medical bills after the birth of my daughter and a divorce might have been the reason for the BK. Or the fact that despite being laid off last year, I now have a job where I can pay extra on the auto loan and the CC's to bring down the utilization, which I already have been. $4k down to $3k in the last 3 months, but with small limits it still looks like I'm using a lot(Ex: $250 on a $400 limit shows 62%, but the dollar amount isn't that much). And like I said, it is only on some cards, my overall util is around 40%. So no, since my cards are not all maxed out like they were before the BK, I don't have an $800 a month car payment, I don't have a spouse to divorce and I'm not having any kids in the near future, I am not "back to my old tricks", but thanks for your "concern".

I don't think it is ludacris to be looking for better options than a 14.99% interest rate, seeing as how just after those 30-day lates, I was refinanced on my BMW for 7%. However, the car was totaled and when I had to roll negative equity into my new loan, I got hit with the 14.99%. Therefore, I do not think it is unreasonable to feel that where I am at now, or will be in a few more months, would be better than that kind of interest rate.

I asked a simple question about how much the lates would be impacting me over a year after it happened. I don't need the lecture about what's going on in my life as aside from those lates, I've done perfectly fine managing myself after the BK and working to try and improve my profile.

@HoldingOntoHope: Thank you for the advice, however as I am still at about 130% LTV, my credit union said I need to bring it down a bit more before they will be able to refi. By the spring, I will have it paid down to around 105%, as well as have my credit cards 100% paid off, so my score should be improved a bit by then and I should be able to qualify for a decent rate through the CU.

[tony46231]

I'm not going to say anything else about your financial situation, other than perhaps if you were better prepared, there would have been no need to file BK.  And that I hope this time around you better prepare yourself for life, before something goes wrong again.

About the car loan.  I wasn't saying it was ludacris to want a better interest rate.  I said it was a bad idea when you initially accepted the high interest rate.  Alternative would have been to pay cash for a car.

Good luck to you sir.

[twall06]

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@tony46231 wrote:

I'm not going to say anything else about your financial situation, other than perhaps if you were better prepared, there would have been no need to file BK.  And that I hope this time around you better prepare yourself for life, before something goes wrong again.

About the car loan.  I wasn't saying it was ludacris to want a better interest rate.  I said it was a bad idea when you initially accepted the high interest rate.  Alternative would have been to pay cash for a car.

Good luck to you sir.

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We all come here to help and encourage each other most of us are here because of past mistakes. Seems like OP has things on track now So trying to refi would be a good idea to get a lower rate if she can. Some people on here at times do need a reality check . I would try to get all the credit card balances paid as quickly as possible if you are revolving them then work on a new car or refi the one you have.

[guiness56]

Though there will be differing opinons on things, how those opinions are delivered make a huge difference.  We are not here to judge others and that will not be tolerated in any way, shape or form. 

Everyone is reminded to be please be friendly, supportive and respectful and to keep your responses in line with the asked question.

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