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@bshockley1981 wrote:
We discharged last week and got an offer first Investors for our auto loan. The only thing I can really see is they were sued for messing w credit profiles in 14. Anyone have any input on them? Would like to go with them due to interest then refi in a year or so.
Keep in mind that you'll only be able to refi for the book value of the car at that time. Have seen a lot of folks here get trapped in a high interest rate after buying a new car and finding themselves significantly underwater on the note in 6 months, 1 year, etc, and nobody will refinance it. Do not buy new.
Better yet, scrape together a couple of grand and just buy something for cash for now. My sister just got a gorgeous car with 48k miles at an estate sale for $2k. Cheap cars that will get you around just fine ARE out there. Get your rebuild going and upgrade when your profile allows for a low interest loan.
Good luck!
^^Agree 100%.
The worst thing you can do from a rebulding POV is to get a high dollar, high interest vehicle loan right after BK. There are many here that did that immediately after discharge and then ended up with a payment they couldn't afford to make - so they had the vehicle repo'ed. Not a good thing after BK. It is very difficult to refi after a BK when the collateral is substantially upside down. Besides, once you hit two years after your discharge, a bunch of new lenders open up to you for a vehicle loan at a low interest rate - provided you have rebuilt your credit. Check out the threads in the Rebuilding subforum.
The points you gain from having an installment loan can be gained with a small $500 shared secured loan. Look up the thread in the Understanding FICO Scoring subforum here on MyFICO (huge thread). Read the first 2 or 3 posts and you will see all you need to know.
Far better to not fall into that high payment trap. Get your finances in order and buy a cash car until you are well on your way rebuilding.