11-05-2012 12:35 PM
New to this forum, but I already see this gets asked a lot. Apologies for another one, but here's some background on my situation. There's probably a lot here to answer and I probably should have made multiple posts, however, in the interest of time I'm just going to make this one...
I had impeccable credit up until 2008, but had ammassed quite a bit of debt. It didn't seem like an issue at the time because I was a high income earner, though most of my income came via commissions. I had prospered through several previous downturns and was not financially prepared for what happened in 2008. Long story short, my income dropped overnight and stayed there for a long time.
After consulting with an attorney, I was advised to declare chapter 7. I let the bank take my nice car, but was able to somehow secure a VW Passat during this. My bankruptcy was discharged in 2009, leaving me with horrible credit but only student loans & the Passat to pay back. I've been paying back the Passat on-time ever since and thought it would be rebuilding my credit. I do not currently have any credit cards or other revolving debt, just student loans.
I've bounced back financially in a big way. My income is the highest it has ever been. I have a base salary of $125K. I do earn commission still and I'm on pace to make another $100-125K. I've got money in the bank & decided to look into getting a nice car as a reward for the hard work I've put in the last few years.
I pulled my credit scores yesterday and was surprised that it was as low as it is. It's currently a 617 with Equifax and a 592 with TransUnion. I looked at the details and it turns out that my car loan has not been getting reported on my credit at all. I called the finance company and they said that technically the car was discharged in my bankruptcy. They said that if I just have them pick up the car, it will not have any additional effect on my credit. That sounds crazy to me, but the rep assures me it is true. Does that sound right? I currently owe $3K more than the car is worth, so if there's no additional negatives it seems like a no-brainer to just return it.
I'm considering an Infiniti. The list price is $62K. I'm wondering if anyone knows how Infiniti breaks their tiers down for leases? Does my 617 make me eligible at all?
Also, I did notice that there were 3 small things on my credit report that said they are in collections. They're all a mystery to me, so I suspect it was something my girlfriend didn't tell me about or something I just completely forgot about after several moves. If I pay those off today, how long will it take the payment to reflect positively on my credit report. Is this something that a finance director can take into account manually if I show proof that they have been taken care of?
11-05-2012 12:49 PM
This is part auto loan and part rebuild w/ BK, so it's pretty in depth.
I can tell you the collections won't make a difference paid or not. I would make a separate thread entirely in the "Rebuilding" section of the forums to deal with those. It should be your goal to get those deleted. Those are weighing your scores down in a big way. Make that thread and you'll get plenty of good advice to go about validating the debt, then dealing with it from there. I would deal with those first before you get down to car shopping, they could make a huge difference in rates.
As for the Passat...can you verify that lease/loan was included in your BK? I wouldn't do anything a frontline CSR told me if it involved not paying a loan my name was on. Better look into that all the way, and even then make sure you get it all in writing.
Low 600's is not impossible to get financing, DTI and down payment would be important. Others I'm sure can get you more specifics. I'm still hoping for some info on my approval thread too, lol.
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