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Advice needed about about post bankruptcy car loan

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kd081708
Regular Contributor

Re: Advice needed about about post bankruptcy car loan

 I took your adice and went to bankrate and plugged in my numbers. I just used paying an extra $50.00 eextr monh. It changed my pay off from February 2019 to November 2017. It also saved me over $3000 in interest! I couldnt believe how just a litle extra a month could make such as big difference. Thanks so much for the advice, Im going to do my best to pay at least an extra $50.00 per month every month. Any time I get some extra cash, it will be going to my car for sure! :-)


Starting Score: EQ 450 EX 498 TU 470
Current Score:
EQ 574 EX 581 TU 572 Barclay 596 Merrick 612
Goal Score:
600 all by 06/30/2014


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Message 11 of 13
TRC2k13
Regular Contributor

Re: Advice needed about about post bankruptcy car loan


@ezdriver wrote:

@StartingOver10 wrote:

You have two issues:

 

1) Refinance

2) Vehicle is upside down

 

Going to a car dealership won't work to refinance because they want to sell you another vehicle. In order to do that they have to take your current in trade and it is too upside down to make the deal work for them. So going around to dealerships does nothing but hurt your score because they keep pulling your credit. Thank goodness you were turned down because it is far better to refi with a CU than to keep adding to your negative equity by trading.

 

Solution: Pay down your current vehicle and in six months go to a credit union and refi the current loan. Within six months you should see a big increase in your score. Here is SoulMasters thread that will be a tremendous help for you to increase your score over the next two years to 700. In six months you should be well on your way http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

 

If you want to trade your vehicle in - don't do it until you have it refi'ed and paid on it at least six months so you can trade without bringing in neg equity.

 

The other option you have is to keep your vehicle until it is paid off (after you have refianced it). That way it gives you time to get on your feet financially. You can do it. You already have started down the road to rebuilding.


Good advice. Exactly what I did. I just refinced and replaced my 21% auto loan [after 12 payments] with a 5.5% auto loan with a local credit union after showing 6+ months of good payment history on my tradelines and allowing my scores to recover from the Ch 7 discharge. The only reason that I kept my car is bacause it is a 2007 Mercedes E350 with only 60k miles on it and I plan to keep it for a very long time ... and I could not replace it at retail for what I own on it. You have to bear some pain to realize the gain down the line.


 

Yeah I'm about to refi my 8.9% car loan with my credit union.  I knew it was high when I bought the car but at the same time I knew my CU would help me out down the road... they just gave me a Rewards Visa and next is the car.

 

Getting in good with the CU was my #1 priority post BR and it's worked out well.

Message 12 of 13
Officer737
Established Contributor

Re: Advice needed about about post bankruptcy car loan

Good deal! When I did mine and the numbers I plan to throw throw at it, I would pay off a 5 year loan in just under 2 years. Makes a world of difference and I didn't even factor in the paying every 2 weeks.


@kd081708 wrote:

 I took your adice and went to bankrate and plugged in my numbers. I just used paying an extra $50.00 eextr monh. It changed my pay off from February 2019 to November 2017. It also saved me over $3000 in interest! I couldnt believe how just a litle extra a month could make such as big difference. Thanks so much for the advice, Im going to do my best to pay at least an extra $50.00 per month every month. Any time I get some extra cash, it will be going to my car for sure! :-)


 

Message 13 of 13
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