what's wrong?????

[kingleo]

My chapter 7 discharge was 3/4/14. Everything on CR shows IIB like it should. I have a cap1(200) and 1st premier(300) with 6% utilization on both. NFCU secured loan($275). All showing positive. 3/21/14 denied for Auto loan of $17000.. Fico Equifax is 511... What am I doing wrong???? What steps to take now????

[simi_go]

Give it time. That does seem low of a score from what I have seen most people coming out of BK with, but it may possibly be a FICO-AUTO specific score.  Did you have any repo's before the bk?  Did you surrender a vehicle during the bk?  The best advice I can give is take your time.  Maybe save some money and pay cash for a used car.

[nurse0528]

Don't feel discourage. I will advise that you double check your credit report to make sure that every thing is reporting correctly.my bk was discharged mar. 21 I pulled score from here for transunion 511 and Equifax 560. I didn't pulled experian yet but expecting scores to increase once everything updates correctly.

[kingleo]

There was no repo or anything. I got an alert today that the loan hit my CR and my score went down to 499... I have no clue on what's going on. I never even got any pre approved offers in the mail. 

[ezdriver]

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@kingleo wrote:

My chapter 7 discharge was 3/4/14. Everything on CR shows IIB like it should. I have a cap1(200) and 1st premier(300) with 6% utilization on both. NFCU secured loan($275). All showing positive. 3/21/14 denied for Auto loan of $17000.. Fico Equifax is 511... What am I doing wrong???? What steps to take now????

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What type of lender turned you down? Just curious because mainstream lenders are unlikely to approve a loan with your credit profile but subprime lenders may ... at high rates of course.

I recommend that you work on a min six-month payment history on 2 to 4 tradelines before applying again. Even then, your rate will be high ... but you could refinance after 12 months or so. That is what I did ... went from a 21% rate to a 5.5% rate by refinancing about 10 months after a ch 7 discharge.

[TRC2k13]

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@ezdriver wrote:

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@kingleo wrote:

3/21/14 denied for Auto loan of $17000.. Fico Equifax is 511... What am I doing wrong???? 

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What type of lender turned you down? Just curious because mainstream lenders are unlikely to approve a loan with your credit profile but subprime lenders may ... at high rates of course.

I recommend that you work on a min six-month payment history on 2 to 4 tradelines before applying again. Even then, your rate will be high ... but you could refinance after 12 months or so. That is what I did ... went from a 21% rate to a 5.5% rate by refinancing about 10 months after a ch 7 discharge.

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... and I went from a 8.9% rate to a 3.99% rate 10 months after a Ch 13 discharge.

OP, you didn't do anything wrong other than applying for a $17k auto loan two weeks after a Ch 7 discharge.  That's too soon and your score reflects that.  Gotta be patient...

Not saying it can't be done, but you can expect to pay outrageous interest.  I got my original car loan the same week I got my discharge, but mine was a 13 and my scores were low 600's and that got me an 8.9% loan that I just refinanced.

[nicolesmith]

Your not doing anything wrong unfortunately some lenders want to see that time in between bk and rebuilding. For some lenders that means yes the person is human and made some wrong turns along the way but now they are rebuilding and headed in the right direction. Yes some lenders will give you that 17,000 loan but attached with highest Apr possible. I say focus on the rebuilding now and the rest will take care of itself.

[Hacken]

WOW! already applying for a auto loan after 2 months or so only? why so soon... at least wait and let things settle down a bit and rebuild your credit scores a little bit more. Everyone needs a car but don't get yourself into a mess again.

[0REDSOX7]

I got two loans, one with Wells Fargo and one with Fifth Third bank five days post BK with 586 score - both at 12.99%   Both loans were 20K.

It is possible - but like others have said - not with main stream lenders - will def. go subprime.  One dealer I was working with didn't use any Sub-Prime lenders, only Prime, so I had no choice but to go elsewhere - which worked out for me.