Chapter 13 Discharge and General Advice Please!

[Anonymous]

Hello all! I've been lurking on all of these forum posts for what seems like a year or two. The advice usually given is very helpful and informative. My background: Filed for Chapter 13 in October of 2013, Confirmed in January of 2014 and our status is currently "about to complete" (everyone has been paid!) So I had a few questions while we  wait for discharge. I'm planning to purchase a new car after discharge. In preparation for financing a new car fresh out of bankruptcy, I became a member of Penfed and they instantly gave me their signature OD line of credit account. I chose not to use it but, it definitely seems to have helped the credit score. My current scores: TU: 657 EQ: 609 EX: 628

All of my account data on all three bureaus are completely accurate. I spent the past few months contesting any info that was inaccurate. My questions for the forums:

1. What should I expect when going into a dealership for financing ? (I'm putting down 14k as my initial down payment, the vehicle is 56k and my income is 106k annually)

2. Suggestions on BK friendly finance options or should I just use a captive lender ? 

I'm super nervous about essentially walking on my own after 3 years of just hanging tight!

Any advice is greatly appreciated!

[Anonymous]

Congrat's. We were discharged from Chap 13 in September of 2014 and in December of 2014 I was able to obtain a 30k loan from DCU at 1.99. I would definately get your finance in place before going to the dealership. Another option is Capital One. We also got another car loan in April 2015 at 2.49. I think you scores look good coming right out of BK and you have a nice down payment, so that will help. I purchased a 2015 BMW in September of 2014, I had a trade in of 7000.00 and then put 10,000.00 cash down. The value of the car was 55,000 and we got it for 50,000. 

[Anonymous]

Thank you so much! I never thought I'd see the day of discharge coming up. (Felt like forever) I was reading some forums over the months and did a pre-qual (soft pull) with Carvana solely for the sake of seeing the rate they'd quote. 10% is what they quoted which, considering I haven't been discharged yet, its not too shabby at all! I've done a ton of homework by going directly to each dealership and talking with their finance managers only. Infiniti quoted a 2.9%, Lexus stated the highest would be 14% (yikes) and Lincoln was anywhere from 0.9 to 6.0%. I'm hoping my down payment will force a better rate. In all honesty, this whole process has made me super nervous to run any credit at all once discharge is issued. I know I have to start somewhere but..... will most likely forgo a Credit One cc or anything with absurd rates like that. 

How long did your discharge take ? I know each Trustee and state are different but, mine is virtually useless for any inquiries or general info lol!

[Anonymous]

I beieve the discharge took about 4 to 5 weeks.  One week after discharge we went to our local CU and opened a Shared Secured Loan for 500.00 and a Secured CC for 500.00. That really helped our score. Then 2 weeks later applied for the Capital One CC and was approved one week later with a 3000 limit.  Then one week later applied for Barclays and received 500 CL.  We wanted to get in with Cap 1 knowing we be going to them for a auto loan. It worked.  Then 3 weeks later applied for the Cap 1 quicksilver and again was approved. Then we stopped and let this age and the limits grows. Over time, the limits were raised and we used the cards very gently.  I would not try for Discover for at least one year after discharge.  My best advise is to do step one with the CU.  

We also did burn Cap 1 in BK, however they are BK friendly.

I would try with either Cap 1 for the auto loan or get in with DCU. Just my advise. It worked for us and the rates were the lowest we ever paid for car loans.

[Anonymous]

Thank you for all the great advice and personal experience sharing. The truly BEST thing about this whole experience has been that I've learned to really prioritize what is even worth buying/financing. Other than financing a car, I really don't want to take out any other credit but will def try with Cap1 in order to expand my profile a bit. Truly, learned a ton from this Bankruptcy. Thanks again!

[Anonymous]

I know where you are at. I also said, no more credit cards after BK.  I could live without them for 3 years, so I don't need them, nor do I want them, however the only way to build your credit back up, is to use credit, just have to use it wisely.

I pay all credit cards off in full every month, except for letting one report a small balance, like 20.00 to optimize the score.

The key is to use the credit wisely. If you don't have the money in the bank to pay off what you just charged, then don't use them.

Start off with just charging gas or groceries once a month and thats it. You can do it.   It just takes discipline. Going through the BK is enough for me never to get in that mess again. I feel good about what we have accomplished since BK. It takes a lot of work, but it is worth it in the end.

[Anonymous]

If youre already in w PenFed why not get the auto loan w them?  They have great rates and most everyone out here loves them. 

[Anonymous]

I've been reading various reviews on their auto loan approvals. Some seem to have no issue and others, seem to score big. I'm just not sure what their policy is on time established after BK. 

[Anonymous]

 shockandawe wrote:

Hello all! I've been lurking on all of these forum posts for what seems like a year or two. The advice usually given is very helpful and informative. My background: Filed for Chapter 13 in October of 2013, Confirmed in January of 2014 and our status is currently "about to complete" (everyone has been paid!) So I had a few questions while we  wait for discharge. I'm planning to purchase a new car after discharge. In preparation for financing a new car fresh out of bankruptcy, I became a member of Penfed and they instantly gave me their signature OD line of credit account. I chose not to use it but, it definitely seems to have helped the credit score. My current scores: TU: 657 EQ: 609 EX: 628

All of my account data on all three bureaus are completely accurate. I spent the past few months contesting any info that was inaccurate. My questions for the forums:

1. What should I expect when going into a dealership for financing ? (I'm putting down 14k as my initial down payment, the vehicle is 56k and my income is 106k annually)

2. Suggestions on BK friendly finance options or should I just use a captive lender ? 

I'm super nervous about essentially walking on my own after 3 years of just hanging tight!

Any advice is greatly appreciated!

---

Ch 13 discharged in May 2016.

PenFed was my first Credit Card.

Just received my second PenFed CC, with a cli on first.  Total exposure now $11,500.

They were very excited to discuss financing a new vehicle for me, as I stated I would probably need one in 12 -18 months. They clearly wanted my business, even if it meant waiting a bit.

* I think a "phone call" to PenFed's Auto Loan department for general questions would be well worth your time.

Let them know your situation, they should already have a credit report pulled, which will give them general info.  Be clear about your "pending" discharge date, and you would prefer that they are your Lender of Choice.

If you are Prior Service, I would most certainly mention that, and that it is why you are a PenFed member.

Best Wishes!!!

.

[Anonymous]

Wow! I had no idea they'd be so inviting. I tried getting an auto loan with them nearly 6 years ago (650 score) and they basically told where I could shove that request lol! I'm so glad to see that Penfed is broadening their acceptance! I'll definitely start with them once my discharge has hit. Thanks so much!