Credit Union Auto after BK

[lee307]

I went to my CU about a possible auto loan after my October discharge. I was told the CH13 was no problem as long
as I had a decent score. They ran everything and told us they would give us a 8.9 on used and 7.9 on new.

This weekend we went shopping and found a new one but the price was really too high for our first loan after BK
so we went elsewhere and found a certified pre-owned we liked. Once everything was negotiated we were asked
about financing and I explained we have CU financing and less than stellar credit. They asked if we would allow them
to try and asked what our rate was. We decided to let them try but only using the brands financing - not blasting it
out to everyone and I honestly had a brain lapse and told them we were approved for 7.9. They came back later
saying they could not beat the rate but would match it. Fast forward to today - I talked to my CU and told them we
purchased this weekend at 7.9 and was told they would refinance us in 2 months beating it by 2 points. Luckily the
dealer called and forgot to get a copy of our residency proof so the deal was still waiting to be submitted.
I called the CU and was told to come pick up the check so no refinancing will be required and they gave us 5.9%

[Anonymous]

Nice.  I was reading somewhere else that Chap 7 and Chap 13 are viewed the same in the eyes of creditors and I would love to get an auto loan at 5.9% a month post-discharge.

I am nervous to go to my CU and even ask.. ugh.

[StartingOver10]

---

@Anonymous wrote:

Nice.  I was reading somewhere else that Chap 7 and Chap 13 are viewed the same in the eyes of creditors and I would love to get an auto loan at 5.9% a month post-discharge.

I am nervous to go to my CU and even ask.. ugh.

---

Interesting info. I never have seen that before. What is the source? Most creditors like the Ch 13 because they are repaid part or all of the debt. There are special incentives offered including being able to finance a home much earlier with a Ch 13 than a Ch 7. You can even finance during a Ch 13 which is not an option in a Ch 7.

[Anonymous]

My Ch 7 BK was Discharged in September and I am part of NFCU and they told me 6 months of solid payments  and credit history first so this is fantastic that they were willing to finance you so fast!  Congrats!

[ezdriver]

---

@lee307 wrote:

I went to my CU about a possible auto loan after my October discharge. I was told the CH13 was no problem as long
as I had a decent score. They ran everything and told us they would give us a 8.9 on used and 7.9 on new.

This weekend we went shopping and found a new one but the price was really too high for our first loan after BK
so we went elsewhere and found a certified pre-owned we liked. Once everything was negotiated we were asked
about financing and I explained we have CU financing and less than stellar credit. They asked if we would allow them
to try and asked what our rate was. We decided to let them try but only using the brands financing - not blasting it
out to everyone and I honestly had a brain lapse and told them we were approved for 7.9. They came back later
saying they could not beat the rate but would match it. Fast forward to today - I talked to my CU and told them we
purchased this weekend at 7.9 and was told they would refinance us in 2 months beating it by 2 points. Luckily the
dealer called and forgot to get a copy of our residency proof so the deal was still waiting to be submitted.
I called the CU and was told to come pick up the check so no refinancing will be required and they gave us 5.9%

---

Well played. Congratulations.

[Creditwiser]

---

@Anonymous wrote:

My Ch 7 BK was Discharged in September and I am part of NFCU and they told me 6 months of solid payments  and credit history first so this is fantastic that they were willing to finance you so fast!  Congrats!

---

NFCU financed me at an awesome rate only 3 months after BK7. They are truly an awesome institution. If they want 6 months then you give em just that and they will take care of you.  Good luck.

[pizza1]

Yep... CU's are the best!!! I was with Santander 22.9% pre BK7, and after ....Navy FCU refinanced me for 3.45%! I love them!! congrats to you

[Anonymous]

We just bought a pre-owned 2012 small suv on Monday pre- BK Chapt 7 discharge and the % rate is 17.18 with a $499 a month payment, We will really need to refi this vehicle sine this payment is really high. How many months do these credit unions require you keep the car before they are willing to refi? Which cu do you suggest? Really hoping we can refi 6mo - a year after discharge. Thanks

[TRC_WA]

---

@StartingOver10 wrote:

---

@Anonymous wrote:

Nice.  I was reading somewhere else that Chap 7 and Chap 13 are viewed the same in the eyes of creditors and I would love to get an auto loan at 5.9% a month post-discharge.

I am nervous to go to my CU and even ask.. ugh.

---

Interesting info. I never have seen that before. What is the source? Most creditors like the Ch 13 because they are repaid part or all of the debt. There are special incentives offered including being able to finance a home much earlier with a Ch 13 than a Ch 7. You can even finance during a Ch 13 which is not an option in a Ch 7.

---

Exactly.

I was told by my BECU loan officer that they prefer Ch 13... for the exact reasons that you said.  Bottom line is it looks better and leads to the incentives you mentioned as well as 3 year earlier deletion of the PR from your CR.

NFCU will finance anyone who is lucky enough to qualify for membership.  They are the exception and not the rule to post BK lending.   BECU made me prove myself over 2 years to get my CC limit up to $10k...

... I have no doubt if I were a NFCU member I'd have had the $15k-$20k-$25k account that they hand out like candy many months ago...

[Anonymous]

What do you have to do to get an account with them? Just open up a checking or saving saccount? Credit Card? I wonder if they allow you to open up an account pre-discharge?