Reaffirmed Auto Loan Impact

[jrobertson8746]

Happy Monday everyone,

I'm post 341 meeting and waiting for Chapter 7 discharge.  I have an auto loan that I have reaffirmed.  The loan is with Ford Credit and is 0%.  The car is 4k underwater so I figured, given that Ford Credit will repo without an affirmation in most cases, that reaffirming would be a good move.  The car is required for work and this way I did not have to deal with a high interest loan post-discharge.

My question is how much of a bump could I see from reaffirming the loan.  My scores are all in the 550 range right now (630 to 650 prior), and I managed to avoid having any 30 day lates appear on my credit reports.  The major hit to my reports before filing were high utilization and number of inquires.

So, I am hopeful that with Ford Credit reporting a positive payment history along with my student loan which was not discharged I will immediately have two postive tradelines reporting post discharge.  And, that given this I can obtain a credit card quickly after discharge.  This would give me a good mix right out of the gate as I work toward rebuilding.

Does this seem likely?  I'm thinking that I am fortunate to be in this position starting out right after discharge.

My first post after lurking and much thanks to everyone that contributes to this forum.

[GatorsFan84]

Welcome.

I can only tell you my experience.  I had a auto loan with wells fargo that I reaffirmed.  I wish someone would have told me this before but sometimes (I don't know the percentages) when you reaffirm the auto loan it stops reporting to your credit.  This is what happened to me.  A month out of discharge I noticed that it was reported closed and a new one didn't appear.  After doing some research I found out that wells fargo doesn't continue to report the loan even if it was reaffirmed.  So, I traded that vehicle in and received a new loan from Santander at a decent rate that reports and helps rebuild.

[Anonymous]

Same thing happened to me. I had a reaffirmed auto loan with Nationwide Bank. Completely stopped reporting.
IMO, I would keep that 0% financing, even if it doesn't report. Then I would look into a share secured loan for an installment tradline. Good luck on your rebuild!

[Anonymous]

I reaffirmed my car.  I then read on the boards that creditors don't report after reaffirmation.  I had a great rate with Ally and a perfect payment history.  I only had a few months left.  I called them and asked if they would report after discharge (they didn't while the bankruptcy was open).  They said they would start reporting again 3-4 weeks after discharge and they did.  I really think it helped me.  My advice is to call them and ask if they will report.

[Anonymous]

I have an auto loan with Ally and reaffirmed with them. My BK was discharged 05/01/2017. When I made my last payment with them on 05/04/2017, I asked them if I would be able to pay online again and if they would report on my credit again. She confirmed that the reaffirmation papers had been signed and that I had been discharged and said "yes". 

To my surprise, I received an alert from MyFico on 05/14/2017. Equifax was now reporting my car loan from Ally. My FICO 8 score went up 9 points. On today, I received another alert that there was activity on my TransUnion report. It was also showing Ally. My score increased by a whopping 44 POINTS!!!!! 

My scores are currently: Equifax-545 TransUnion-530 Experian-505

[FireMedic1]

I reaffirmed with Cap1. I couldnt go online for 4 months. But they reported all the way thru. It acted like any other car loan the whole time. Got 3 payments left. YES!