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Discharged a week ago and car broke down, what should I do?

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Discharged a week ago and car broke down, what should I do?

Received my discharge papers about a week ago, and what do you know my car broke down. My credit score is 553 and the the car dealership says they can finance me but my rate will be high (which I already knew). They did mention that if I wait about a month, my credit will probably go up to 600 which would make me eligible for prime rates. My car won't be able to make it a month, but if my score can go up in time to go from paying 10% oppose to 18% I guess I can try and wait.

 

My question is, will my credit jump up that quickly or should I just suck it up and get a car now?

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Re: Discharged a week ago and car broke down, what should I do?

I'm not an expert in BK, so bumping for others, but wouldn't the cost to fix it be less than the amount needed for a down payment?
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Re: Discharged a week ago and car broke down, what should I do?


@jazzncc wrote:

Received my discharge papers about a week ago, and what do you know my car broke down. My credit score is 553 and the the car dealership says they can finance me but my rate will be high (which I already knew). They did mention that if I wait about a month, my credit will probably go up to 600 which would make me eligible for prime rates. My car won't be able to make it a month, but if my score can go up in time to go from paying 10% oppose to 18% I guess I can try and wait.

 

My question is, will my credit jump up that quickly or should I just suck it up and get a car now?


 

I have no idea why the car dealership thinks your FICO will jump 50 points in 30 days.  We received no score jump on discharge.  Our scores have gone up significantly but we had to work it - had a lot of misinformation reporting on our credit reports - including several accounts IIB that were reported incorrectly.  Those don't self-correct.  We had to dispute inaccurate information, remove several lates that were misreported rather than reported as IIB, and correct double reported accounts.  After you dispute inaccurate information, I believe the CRA's have 30 days to correct the information.  And they often do not correct it the first time around.  We also had to build credit.  We didn't have a CC reporting, so we had to open a new CC account.  That provides a nice score jump, but it didn't show up on the reports for more than 30 days.

 

Please consider getting your credit reports (they're free once a year) and then purchasing your FICO scores on myfico.com.  They will also tell you what is affecting your scores specifically, and give you a score simulator to help you know how specific things (like taking out a car loan) will affect your credit score.  One thing to be wary of:  financing a car through a finance company rather than a bank, credit union, or car mfg. financing, will hurt your score for as along as the account shows up on your credit report (usually about 15 years).  You're already taking a hit for the BK - that can be remedied fairly quickly (scores can improve significantly in less than 6 months if you build and correct); but you don't want to take another long term hit by using a finance company.

 

Congratulations on receiving your discharge (ch 13 or 7?) and best wishes with your car!

 

Ilecs has a great point - look at repairing what you have.  If you find you must replace the car, then find a lovely used model - it will help your cash flow which is a great plus when you're trying to rebuild your credit.  Hey - I drive a lovely 14-year old Toyota Camry with 250,000+ miles.  She's still pretty and she runs fine - I'm holding off as long as I can Smiley Wink.

 

Just puttin' syrup on something, don't make it pancakes.
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Re: Discharged a week ago and car broke down, what should I do?

Did you reaffirm your car in the BK? If not, you can just have them pick it up. and go out and get new/used car.

I kept my car after my BK7, but I didnt reaffirm it. So i pay the monthly bills just so i can keep car for right now, but beginning of next yr i plan on getting a new one. Then they can come pick it up!

 

My atty advised me not to reaffirm anything. Unless I really really wanted to keep it.

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