02-25-2014 11:26 PM
02-26-2014 08:28 AM
Welcome to the boards Morgan! You will have to call the credit unions and inquire about their outlook towards someone with a BK. It is not easy and will take some time, don't give up though!
Here is a link I found to start you out. Have a good day and happy rebuilding!
02-26-2014 08:57 AM
1) Credit Union Locator this is from CreditUnion.gov. Just put in your zipcode. It defaults to a 5 mile radius, but you can expand that if in rural area. I'm in St Louis, and there are numerous ones out here. In St Louis, you pretty much just have to live in the Metro area.
2) Your biggest obstacle would be if you had any Banking issues. Even if discharged, Banks & Credit Unions use Chexsystems and other like-programs that can keep one from opening an account. Again, this can be entirely separate from any bankruptcy. If no Banks/Credit Unions closed accounts on you, then this wouldn't apply.
3) If #2 doesn't apply, then it's just a matter of contacting their Call Center/New Accounts if you can, and seeing about an account, even just a Share/Savings account to start if need be.
As to the OTHER type of Credit rebuilder loans, stay away from any of those cash payday places. Really try to spend the time with getting a Credit Union account opened up.
Hope that helps,
02-26-2014 02:58 PM
Welcome to the plan Morgan!
Navy isn't a requirement for the plan at all. And in theory you don't need a "Credit Builder" product if you've got some cash you can tie up for literally 5 mins. The alternative is to use a Certificate (CD) or Share-secured loan. All credit unions have those, most don't HP for them, and the rates are all reasonable. You give them $1000, they put it in a 1yr CD @ X%, they loan you $1000 right back at X+Y%. Y is usually right around 1.5.
So if you can't find it, don't despair too much, just use the above alternative.
Also, I think DCU is open to everyone and they might have have a credit-builder type loan.
Wishing perfect patience upon you!
02-26-2014 11:49 PM
Officially my position is that anyone who wants to finance a car needs to:
A. Read the Dave Ramsey car buying method
B. Watch more Top Gear where they constantly buy really good cars for sub $2000 or even sub $1000
Another good read is Millionaire Next Door. As it turns out, the fastest way to becoming a millionaire on a reasonable salary is simply to never pay interest on anything but a house and save that interest in a good investment instead.
Once all of that has been read a couple times, if someone has 6mo of living expenses cash-money in an emergency fund and really wants to waste some money:
1. Buy used or certified pre owned
2. Put 10% + tax, title, fees down so you don't start "underwater"
3. Finance as short as possible, making sure that your car payment is no more than 10% of your monthly take-home-pay.
4. 1 year post bk (and on plan) I've had several clients get sub-3% used car interest rates on good used cars.
In that case, the car loan would be a substitute for the second credit builder loan. I still don't recommend them, though.
All that said; Earlier today I financed $5000 of a $14000 used motorcycle purchase that I could have easily paid cash for. I hate that the credit-score game requires "mix of credit" to boost for a house 6-12 mo from now. The instant my mortgage funds, I'm paying off this nonsense. To be clear, my 2nd credit builder loan (2years/$2k) ended in Jan and I no longer had an active mix of credit. Got the best rate the bank offers anyone on a 2 year collateral loan. Still ticks me off. I hate interest and may pay it off early and just do another credit builder.
02-27-2014 03:26 AM
02-27-2014 04:30 PM
If you have done your research, have a 90+% chance of approval that will lower your interest rate (considerably) WITHOUT extending the terms of your loan, then go for it.
The thing most people forget is that ammortization tables front-load the interest so a lot of people who refinance wind up paying the interest twice. If you have 3 years left, refi into a 3 year note. If 2, then 2 and so on.
02-28-2014 10:33 AM
Can't wait to start this - I am going to talk to my local CU on Monday that I just opened a savings account with and go from there. I really need to wait a few months post-BK to start because I have so many darned inquiries.
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