FICO Scores for Car Loan after BK

[SanDiegoMadness]

Hi all,

We just started the process of filing Chptr 7 and I am wondering if anyone can advise me on what lenders require the FICO scores to be in order to get financing after the discharge? I have been reading through here a lot and see scores ranging from 550-680 after discharge, but I am wondering if anyone was in the 450 range and still received a loan.
Does the FICO matter since you are "fresh meat" after a BK since the banks know you can't do it again?

Thanks for any advice!!

[JollyGG]

Work on your credit report and make sure that it is as accurate as possible. Getting everything to report as IIB and 0 balances will make a big difference in your FICO score.

Determine if there is anyway to pay a few thousand for a beater that will get you around for a while. Put as much time as possible between your bankruptcy and your new car purchase as possible. Time heals allot of wounds including those to your credit. Not everyone can wait, some need a car due to repossessions or giving cars up in bankruptcy. But if there is anyway you can wait then do so.

Do your budget and figure out exactly what you can afford. Once you know what you can afford go to your credit union, lending tree, capital one, roadloans and get preapproved financing. Find the car you want. Tell the dealership that you already have financing lined up but they may shop the loan around and try to beat the terms you were offered.

Go into the deal with the biggest down payment possible and take the shortest loan possible. Those will help you get approved at the best terms you can. It also means you will pay the least interest you can and get out of your high interest rate loan quicker. Hopefully, it will be the last time you have to take a less than ideal interest rate on a car.

There is a lot that goes into approving someone for an auto loan besides FICO scores, though FICO scores are considered. They also look at your employment history, your living situation (own or rent), down payment and trade-in, the value of the car you are purchasing, your debt to income ratio, ect.

See this thread for some discussion on how bankruptcy may effect your credit and on how the damage may not be as bad as you fear. http://www.bkforum.com/showthread.php?t=13381

[freshstart06]

Okay, you are not going to believe this but my fico score is 437 and my husband's 390 and we got a new dodge durango with mo money down while in BK. It is a replacement car loan that is allowed in BK.

[KellyBerg]

Okay, you are not going to believe this but my fico score is 437 and my husband's 390 and we got a new dodge durango with mo money down while in BK. It is a replacement car loan that is allowed in BK.

wow, those are the lowest scores I've seen. What made them so low? Mine is 650 and I'm gritting teeth because I used to have 790

[tiredofdebt]

Freshstart....who did your financing?

[mixxalot]

I have pretty good FICO 1.5 years after my discharge. Now is between 680 and 701 for my three scores. Just found out from State Farm and BofA that I can probably get a new auto loan and/or mortgage in another 6 months to 1 year so thats encouraging.