Auto Financing Nightmare

[RebuildingAgain14]

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Hello all,

I have been "lurking" for a few months and finally decided it was time to post about my horrendous situation...  I have some credit "challenges" to say the least. Ch 7 bk discharged in 2004 as part of a divorce, then rebuilt to mid-600 scores.  Then, when my then-current relationship ended the wheels came off again.  The other party took a vehicle that was financed in both our names (although when we purchased the vehicle, I qualified on my own--adding the other person got us a slightly lower rate) and stopped making payments.  I wasn't aware until it was almost too late, then couldn't afford to fix it.  Ended up doing a voluntary repo (which I have actually had removed from my credit files, miraculously enough). I now have a 60 month auto loan w/ payments of $360/mo.  Financed $11k @ 26 (I know, I know... but what's done is done).  Negative equity is about $3500-4000 on trade, although dealers say more like $5-6k.  I have decent income but my scores are low to mid 500's at this point.  Any advice for this situation?  I think if I wait a few months my score should go up and I should qualify for a rebuilding program through a local credit union.  Just wondering what has worked (and what hasn't) for others in similar situations.

Just as an aside, was recently approved for a secured Cap One card w/ only $49 minimum "deposit."  Have seen others approved through Cap One after a couple to a few months w/ the secured credit card account? Also have a Cap One Auto paid off 5-6 years ago.

Thanks!!!  :-)

[Anonymous]

I was stuck in the same situation a few years ago. Terrible auto loan interest rate and negative equity made it impossible to refinance. What I had to do was just bite the bullet and put as much as I could toward the car loan. Capital One credited all extra payments toward the future payments. I did not bite when they said "All you need to pay is this much this month." I just kept putting the full payment plus whatever extra I could afford.

My out was when my credit improved enough to get a decent credit card from NFCU. When they offered one of their frequent 0% no fee balance transfers I took advantage and transferred the remaining car loan to the credit card. Then I just kept making the "Car payment" to the credit card to pay the balance off. Good luck on your personal rebuilding journey. It can be done.