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04-19-2017 04:49 AM
So my husband and I are waiting on our discharge papers. We did 5 years on Chapter 13, kept our house. We are in desperate need of a car as mine is falling apart and barely running. I am looking at a loan for around $25,000 putting $5,000 down.
My FICO score is 687. What kind of rate do you think I could get? And do we need to have discharge papers in our hands when we go to apply for loans?
Also, is it best to apply online for the loan or in person to discuss the discharge?
Thanks for all your help. I hope my questions aren't stupid. I am new to this.
04-19-2017 07:41 AM
I didnt need anything when I financed a (new to me) car and I was a year away from discharge. 687 is your FICO? Do you know what your Auto scores are? No matter. Mine were in the tank still at the time, and my trustee of course approved the deal which you wont need since you are discharged and they are paid in full.
Anyway, because I was still tanked I even got a 9% rate which at the time it didnt matter. Still doesnt really as my payments aer $263 (i put $6K down) and I pay extra every payment. No need to refinance to a lower rate and start all over again just to save a bit of interest.
04-19-2017 09:40 AM
Do you belong to a CU? I would try to obtain your own financing before going to the dealership. This will help you prevent being taken advantage of. If you are able to join NFCU, try them. I was approved for a loan a few weeks ago at 4.69%. I refinanced and was over the LTV limits so they added about 1% to my rate. Prior to that, I obtained a loan for the purchase from Cap 1 at 6%. My scores were in the 600's but lower than yours. You can try their prequal site. Once you have a prequal and a range of rates, put in the VIN for the car you are interested in and down payment information. Print off the results and take them with you so the dealer doesn't try to screw you.
04-19-2017 06:31 PM
We were just discharged from a Ch13 at the beginning of the month and just purchased a new car last week. Financed was $38k and we financed at 5.5% with only 1k down.
04-21-2017 10:01 AM
Do yourself a favor and apply at Capital One auto finance. They do a soft pull and you will be pleasantly surprised. Myself and a bunch of friends were preapproved just months out of Ch. 13 and received rates under 3%.
04-24-2017 01:30 PM - edited 04-24-2017 01:31 PM
My wife and I are currently about 3 years into our Chapter 13 repayment plan. We literally just purchased a replacement vehcile for my wife this past Saturday, with the required permissions based on the Chapter 13 plan.
My score is around 660 at the moment, but I didn't have any problems at all with my credit union. I joined about 4 years ago, but never borrowed any money from them. They were AWESOME to us. We got a loan for $14K, and put $4K that we scraped and saved with it to purchase a very nice 2014 Jeep Cherokee with 30,000 miles.
I can't recommend a good CU enough. They gave us a rate of 2.5% like our history wasn't a thing. When I spoke with them the very nice loan officer told me they aren't in business to make a killing on their members and they only give loans out with the rates they advertise, you either get approved and get the great rate or you don't. They were very understanding and we did everything over the phone.
Get a good CU!! I plan on using mine for the rest of my life.
(I have not posted here in a long time, will update my signature, as the scores are not accurate)
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