@Invaderofbunnie wrote:
Discharged July of this year.
Scores are in the mid 650s.
2 Credit Cards at 0 Balances currently - 1 is reporting a 10% balance right now, but should update by 10/2.
Unfortunately got myself in a situation that required me to get a car right after I had filed. Enter Flagship Credit Acceptance, who financed me at whopping 23% in a 2023 Nissan Rogue. I love my car, but given that i've had the car since May, I've made on time payments every month, and my balance has MAYBE gone down $1,000..It's killing me to think I could end up paying almost $78,000 for my $38,000 car... Given that if I tried to trade it today - It's only work maybe $23-25k....sigh..I'm already so upside down in this car do I even have a chance?
I've paid extra payments to Flagship but they are the WORST company to get ANYTHING done, it's a fight every month to get them to apply my extra payments to my principle balance, I feel like they still haven't done it.
I am a member of Navy Federal, and a Local CU.. I was going to try to local place after my credit cards report updated balances next week.
Navy Federal says I have to wait a year after BK.
Anyone have any other suggestions or luck refinancing?
I honestly feel for you. You're in a big mess now, right after the BK7 discharge where the slate was wiped clean. You paid $38K for a car that's now worth $23K, and that $15K drop has been from May to October, so you have lost $15K in equity in five months.
I think you need to to look at the $15K deficit was essentially owing a credit card $15K, and put every single cent of your non-mandatory minimum into paying down that equity until the amount owed is at part with the balance. This includes cutting all unnecessary expenses, getting a second gig job, selling stuff, taking on a roommate .... Starting off with a $15K unsecured debt right out of BK7 is just a horrible place to be.
This isn't directed at you because it's water under the bridge, but for others having just done a BK, DO NOT buy a new car at a 23% (or 30% or 18%) interest rate. Buy a used car, pay cash or put down at least 50%, and keep it to something like a $25K car (I used to say $15K, but I'm not sure if you can still buy a used Honda, Toyota, or other reliable used vehicle, five years old at that price with the market changes the past 24 months).
You should not even think of buying a brand new card until you can get a current market interest rate from a credit union, which if you are prudent in your rebuild, you can do in 24 months or less. Ful price brand new cars are for people who can pay normal market rates and who can put down at leat 10% and preferably 20% plus.
You've sadly dug yourself a big hole. Stop digging right now and focus on that negative equity, or you will be in a chapter 13 by Valentine's Day.
