Hello, to start I have been reading the forums and have learned a lot but figured I would still reach out for some opinions.
A few years ago I was single with a FICO of around 650. and was making 60k a year with two auto loans, house and a steady job. Long story short I ened up with a pay cut from reduced hours and eventually turned into a 30k a year pay cut and changing careers. I was able to sell the house but two vehicle payments and credit card payments were too much to handle. I filed Chapter 7 in Oct 2016 and received my discharge in Feb 2017 which included both vehicles and some credit cards. The car was about a month in default before being repoed during the bankruptcy. My truck was a lower balance and lower payments so I have kept every payment current from day one and only owe $2900 on it but a re affirmaton agreement was never signed so even though I'll get the title when it is paid off it is still closed included in bankruptcy.
Two weeks after my discharge my wife's vehicle was to the point it was unsafe to drive and we were approved on a joint application at 11.54% for a 2016 fusion. I was surprised we were approved for anything considering i was two weeks out of discharge and my wife had average credit.
Fast forward to now
Combined income: $78,720
My fico 8: 634 Hers: 669
Debt: my student loan $3100-Paid ontime and never late
Our credit card balances are a little high over 60% ($9800) of the total limits due to moving and my wife bringing in some high card balances when we got married however will be putting about 6k on them all in early spring which will put the balance at about ($3800) 25% balance of the 15k total credit limit--hopefully that will be a nice score bump
16k on the fusion car loan
Rent is $975 a month- she also has a mortgage on her report listed as (Joint) from co signing for her dad's house (he pays for the mortgage)
Now my truck is on its way out and want to buy new as I plan on keeping it until the wheels fall off.
Currently looking at at truck that comes out to about 39k before taxes
$4000 estimate for trading my current
$5000 cash down--or more if able
I am hoping that paying down 6k of credit cards, aging my credit report another 3-4 months minimum, reaching the year post bk mark and year of on time payments on the fusion will get me at least 7% rate on a new truck
Do you think this will be realistic considering what our current scores are and what I plan to get done in the next few months?
I would take a copy of your CR and go to a local CU. They may give you an idea if they would approve you without applying saving you an INQ. It's worth a shot.
I was thinking along similar lines with maybe trying to get pre approved online with a few banks or credit unions a few before I'm ready to buy so I would at least be able to head to the dealer with a little bit of the pressure off, maybe apply online the day before as well with their captive lender (GM Financial). We are in a far better position than we were almost year ago when we got the fusion but still not perfect. We do not plan on applying for any more credit after this for at least a couple years when I'll be a couple more steps up the pay scale and we get a house.