topic Re: Checked on auto finance rates.....WOW!! in Bankruptcy

Checked on auto finance rates.....WOW!!

Officer737 — Wed, 22 Jan 2014 03:25:40 GMT

Since filing I have been getting the mails daily about building new credit so I talked to one of them in regards to an auto loan. 20.49% interest for 60 months. WOW! I thought most people stopped smoking crack and decided to smoke meth instead, guess I was wrong after hearing those rates.

Re: Checked on auto finance rates.....WOW!!

DaveSignal — Wed, 22 Jan 2014 03:36:51 GMT

The drug references are not necessary.

A high interest installment loan for sub-prime credit ratings is not a good way to look into rebuilding credit. Others in the rebuilding forum would be happy to help you if you present your situation there.

Re: Checked on auto finance rates.....WOW!!

Officer737 — Wed, 22 Jan 2014 06:46:17 GMT

I apologize if offended anyone with the drug references, it was an attempt at humor and quantified my amazement at such a high rate. It my profession, humor helps get us thru what we see on a daily basis, guess it isn't so elsewhere.

Thank you for your recommendation.

Re: Checked on auto finance rates.....WOW!!

0REDSOX7 — Wed, 22 Jan 2014 12:53:42 GMT

I put a fraud alert on my credit reports - it helped get them to stop.

Local dealerships still contact me (which is nice, because I will need a loan after BK discharge), but none of these "pre-screened offers" that I was getting right after I filed.

Re: Checked on auto finance rates.....WOW!!

Scupra — Wed, 22 Jan 2014 16:07:57 GMT

Try and wait it out as long as you can. Get a credit card asap and start building a history so they have something to look at. I waited 1 year post d/c and was approved through NFCU for an auto loan at 4% Keep your head up, it will get better!

Re: Checked on auto finance rates.....WOW!!

0REDSOX7 — Wed, 22 Jan 2014 17:14:02 GMT

How does one get any type of NFCU account, anyway?

Re: Checked on auto finance rates.....WOW!!

Scupra — Wed, 22 Jan 2014 17:25:25 GMT

@0REDSOX7 wrote:
How does one get any type of NFCU account, anyway?

There are a couple different ways to join. I am not an expert on them so I will link it for you.

https://www.navyfederal.org/how-to-become-a-member/how-to-become-a-member.php

Re: Checked on auto finance rates.....WOW!!

0REDSOX7 — Wed, 22 Jan 2014 17:42:01 GMT

Yeah - I did that, and am not eligible.

Just seems that every one on here goes to NFCU, but I guess they all meet that criteia...

Thanks, though!

Re: Checked on auto finance rates.....WOW!!

ezdriver — Wed, 22 Jan 2014 18:00:47 GMT

My ch7 discharge was in April of 2013. My local credit union just offered to refi a 21% auto loan for me at 5%. I don't understand why anyone would be shocked at 20% or more interest rates for applicants with bad credit.

Re: Checked on auto finance rates.....WOW!!

0REDSOX7 — Wed, 22 Jan 2014 18:21:29 GMT

I am expecting 14-18% range - and can live with that for a year or so until I build up credit again.

Re: Checked on auto finance rates.....WOW!!

grassfeeder — Wed, 22 Jan 2014 19:45:12 GMT

check into Wells Fargo as well. They financed me at 10.99% only 2 months out of BK. Granted I dod have about 55% of the cars value in cash so I held a great equity position, but they didn't even blink and were the lowest of the 3 I checked into.

Last Oct, NFCU offered to refi that loan down to 8.5% however I turned it down in hopes I can now get lower having paid on the car for a solid 12 months now.

We'll see what I can get now.

Re: Checked on auto finance rates.....WOW!!

Officer737 — Thu, 23 Jan 2014 05:29:04 GMT

Thanks for all of the insight everyone. I am applying for a couple of cards post discharge to get the ball rolling. I am thinking of takng the offer start the credit rebuild and throwing extra money at it every month to pay the principal down more and refi as soon as I can to get rid of the rate. The payment is $300 a month roughly which I can cover without any issues.

Re: Checked on auto finance rates.....WOW!!

DaveSignal — Thu, 23 Jan 2014 05:37:11 GMT

Do you need a new car? An installment loan is not a fast way to rebuild... and will cost you a lot of money.

Re: Checked on auto finance rates.....WOW!!

Officer737 — Thu, 23 Jan 2014 05:58:26 GMT

Not really, I reaffirmed my auto loan thru the Ch7 but now it will stop helping my report but I didn't want to burn my co-signer in that so I reaffirmed it

Re: Checked on auto finance rates.....WOW!!

Scupra — Thu, 23 Jan 2014 16:15:08 GMT

@Officer737 wrote:
Not really, I reaffirmed my auto loan thru the Ch7 but now it will stop helping my report but I didn't want to burn my co-signer in that so I reaffirmed it

I misunderstood, I thought you were in need of an auto loan asap. I would try and wait as long as you can! After about a year of rebuilding you should be able to find a decent rate. Change your auto payements to bi-weekly to shave off some interest and still pay the same monthly. Put the "extra money" you said you would throw at it in a savings account and use it for a down payment a new car maybe. Good luck!