Auto loan post Chaptet 7 discharge...help!

[Tayconn11]

So I am in need of a new car. My chapter 7 was discharged 10/28/2014. Since then I've been approved for the following:
Cap 1 plat MC- $300
Cap 1 QS one- $300
Credit 1- $300
Firestone- $1000
Walmart- $600 (aprvd 12/15)
Fingerhut- $600
Gettington- $350
Express- $250

My fico scores as of 12/10/2014 are: EQ: 602, TU: 590, EX: 636

I applied with Cap 1 auto finance and was denied. I then went with a dealer who approved me through Santander with horrendous terms. I found a nice 2007 Lexus IS 250 with 65,000 miles in really good condition. Santander terms are $13,888 for 72 months $1500 down, @ $403.00 with an apr of 23.99%. That's ridiculous!!! I think it's a simple interest loan also. Smh, I feel somewhat insulted. My previous car history is 1 repo in 2009 and my car that I surrendered in my chapter 7, I was never late. Over 30 on time payments. I'm afraid to go to another dealer as the inquiries are killing my score, I'm sure.

I really was sure, I'd get approved for the Capital One Blank Check. I've had my cards with them since 1 month before my discharge and I've always paid more than the minimum. Can someone please suggest my next route? Or an auto finance company that's bankruptcy friendly? I'm really at a lost here.

[Anonymous]

Im surprised cap 1 denied you.

How much do you have on all your cards? Pay down to only 10% utilization on your cards and try again. Otherwise, you either need to A) Give it time or B) take the awful terms for a year and refinance when your credit profile is stronger

[DaveInAZ]

You've been busy! You should have stopped after 2-3 CCs, rebuilding credit after BK is not a sprint race, it's a marathon. That's 8 inquiries on your CR just for CCs within 2 mos. of dishcharge - not only are that many inquiries hurting your score, that many new accounts in a short period also hurts your score. It also makes creditors nervous that you didnt't learn your lesson from BK and are again accumulating more debt then you can manage.

Yeah, that 23.99% loan from Santander is insulting and bordering on usury, but with all those inquires & new accounts so soon after discharge be prepared for really **bleep** car loan rates at this time. I'd suggest you go with a cheaper car so those high interest rates won't make such a dent in your budget, but whatever route for a car you go pay it on time and in 6-8 mos. of good payment record on the car loan & CCs you should be to refinace the car loan at a much better rate. And dont' apply for anymore credit until then!

[Tayconn11]

You're absolutely right, I really have took off at full speed. Smh, I just got really happy with all the approvals...
My overall utilization is at 29%. You were absolutely right about the inquiries and age of accounts hurting me the most. I spoke with the sales guy at the dealership and he said that Cap 1 did approve me but for only $5000. Smh. He says that Santander wouldn't budge on the terms though. I'm looking to go to another dealership tomorrow though I'm not sure. Again, it's the inquires that are freaking me out! Walmart was my last app and I'm currently gardening. I'm going pay the cards down to 10% this weekend and hopefully that will give my score a boast also. Unfortunately, I can't wait it out. I'm an event planner and my job requires me to travel and meet with prospective clients. I read somewhere on here that Prestige Financial will finance post discharge. I may try them...then again there's always the deal with Santander.

[DaveInAZ]

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@Tayconn11 wrote:
You're absolutely right, I really have took off at full speed. Smh, I just got really happy with all the approvals...
My overall utilization is at 29%. You were absolutely right about the inquiries and age of accounts hurting me the most. I spoke with the sales guy at the dealership and he said that Cap 1 did approve me but for only $5000. Smh. He says that Santander wouldn't budge on the terms though. I'm looking to go to another dealership tomorrow though I'm not sure. Again, it's the inquires that are freaking me out! Walmart was my last app and I'm currently gardening. I'm going pay the cards down to 10% this weekend and hopefully that will give my score a boast also. Unfortunately, I can't wait it out. I'm an event planner and my job requires me to travel and meet with prospective clients. I read somewhere on here that Prestige Financial will finance post discharge. I may try them...then again there's always the deal with Santander.

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I'd be careful about going to another dealership - when you sign a credit app you're authorizing them to run multiple inquiries. You might chance another application direct online for that Lexus with Prestige and/or Roadloans, which I've also read does loans with marginal credit. If they ccan offer you better terms for a loan for that car grab it. If not, you'll probably have to settle for Santander and refi in 6-8 mos. Keep CC utilize under 10%, pay everything on time if not early, don't apply for any more credit and you be able to refi in 6-8 mos at much better rates with a much better score. One more suggestion: have you used AutoTrader or other online service to check for cars in your area you might like better? I've been checking on  cars as I plan to buy one in Feb, after I refi my mortgage 4+ years post discharge. AutoTrader is pretty good and they include most dealers  & you'll get a good idea of what's available at what price range in your area.

[Anonymous]

Try contacting Tide Water Motor Credit, they financed me during my BK and I got a 14.9%, I am waiting till spring and will try and re-finance then with NFCU, that will give me 9 -10 months of ontime payments with Tide Water.  

[Tayconn11]

I went ahead and applied with Prestige. It says that they'll contact me within 1 business day so hopefully Monday, I'll have an answer. I'll look up Tide Water too daisymae850. Thanks you all for all the great advice! DaveInAZ, Thanks for the Auto Trader scoop! I checked it out and it's pretty awesome!

[Anonymous]

I was just approved with prestige but turned them down.

They offered me a loan for 16.9% which would drop 2.5% down to 10% every 3 months when payments were made correctly.

The thing that got me was they were only asking 16,9 for the truck. I was putting 2k down and still amount financed came to 18,5 ish. WHAT! They told me it was financing fee's. I was ok with finanicing about 85% of the value of the vehicle, but 18.5 made it around 118% and with me putting 2k down. NO THANK YOU SIR! I'll take my chances on a 4-5k beater.

[StartingOver10]

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@Anonymous wrote:

I was just approved with prestige but turned them down.

They offered me a loan for 16.9% which would drop 2.5% down to 10% every 3 months when payments were made correctly.

The thing that got me was they were only asking 16,9 for the truck. I was putting 2k down and still amount financed came to 18,5 ish. WHAT! They told me it was financing fee's. I was ok with finanicing about 85% of the value of the vehicle, but 18.5 made it around 118% and with me putting 2k down. NO THANK YOU SIR! I'll take my chances on a 4-5k beater.

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^^^Smart.  I did that. Picked up a good looking beater for two years right after my BK. It was well worth it. I didn't get a newer vehicle with payments until my score was over 700. I still had to negotiate for the interest rate but got a 7.14% rate.  Don't jump from Bk into massive debt. BTW, I'm a Realtor and the vehicle is important. If you shop right, you can find a 'beater' that looks good and is cheap. It just has high miles. Do your homework.

OP you have only been discharged 2 months and have already run up a bunch of debt (29% of your available credit lines).  Stop shopping. Stop charging. You need TIME to heal your credit and grow your limits. Don't jump into a huge car payment two months after discharge....it will defeat the entire purpose of the Bk process.

[Anonymous]

Yep, I work full time and am going back to school but luckily I can also work on my own cars. Waterpumps and things of that nature are easy to me. A whole engine..well thats above my skill really.

I've been looking for a 96-200 cherokke xj. 4wd, roomie, not terrible on gass. And good thing is for 5 grand I should be able to find one with reasonable miles.

This last prestige offer was one of the first loans I ever walked away from. It actually felt good to know that I made a good decision.