Why cant get I a loan 2 years after Chpt 7

[phiednate]

I filed chapter 7 bankruptcy about 2 1/2 years ago. I had a hard time getting any credit besides secured credit cards and at the time I was living back home and couldnt even afford that small amount. Since that time I joined the military ( been in the Air Force for 2 years now) and just about a month a month ago I changed my bank to USAA and I was accepted a credit card. I then decided to check my credit report to see how my crdedit was in an attempt to get a a little newer truck and work on my credit a bit. My numbers were as followed:

TransUnion: 641
Experian: 607
Equifax: 570

Now I did find out that a few things that should have come off with the bankruptcy didnt do so. I have disputed them and contacted the collection agency and they are comming off. One item on there for $102 was after the bankruptcy when my old roommates didnt turn in the cable equipment. I will be paying that one off this week so besides the chapter 7 and an credit card that was discharged my credit will be clean. I dont know how often USAA reports to the credit angencies but I am sure that will help a little bit too.

My question is when I go home to Washington over Christmas (assuming I dont deploy) I would like to look into getting a newer truck but nothing over $10000. My thought is that with my savings of about $1500 and my trade in on my truck of about $2000 I will need a loan in the $7000 range. I applied a few places online within the past few days to see if I can get a loan and no luck. Will I have better chance when those other items come off or is my credit bad enough to where I will still need to wait a few years to get a new truck? Thanks for all the help!

[Minnymouth]

You've been out of BK long enough to get good loans again, its just that you haven't cleaned up your credit report till now and have had nothing new reporting on it since your BK. You probably should have gotten a secured card and used it to buy gas and paid it each month to help build your credit score back up.

Hopefully a dealer will work with you and with a trade-in and downpayment the new truck will stand good for itself on a new loan for you.

Won't know till you check it out..............

Good luck

[SinkingFast]

Part of your problem may be the amount you're looking to borrow. I know RoadLoans and CapOne both won't lend under $7500 I think it is.

Another problem may be you don't know exactly what you wanna buy. Many Lenders have criteria for vehicles. Can't be older than 2001-2002. No more than 50K-70K miles. That sort of thing.

Also, income may be a problem. Lenders do require you make at least $X/year to qualify for a loan. So that's something to look at too.

Keep checking your Credit Reports to see that these items are corrected as they should be. Creditors have 30 days to respond to Disputes so you're looking at about mid November before they "have" to report correctly.

If things continue to show wrong, you can always Document the discrepencies with prospective Lenders.

[phiednate]

Well the vehicle I am looking for is a 98-04 Toyota Tacome 4x4 Extended Cab. These range anywhere from 8-12k.

I guess I will just have to see how my credit looks after I finish cleaning it up. I have seen some people get decent loans right after a BK so I would think I would be able to do the same in my situation once my credit is cleaned up. Does my age (23) play a role?

[HRx]

How was, and what was the length your payment history prior to BK? How many loans/credit cards did you have prior to filing BK? Typically, people that had a few to several years of good credit prior to BK, are the ones that are able to get loans, and credit cards soon after their BK's have been discharged.

[phiednate]

I really didnt have any interest in credit untill I realized I was in debt. It happened probably about 4 years ago. My parents told me they would be paying for my college as long as I got good greades. I got good grades but they bailed on me and stuck me with $15k to boot. On top of that my mother tooks out a credit card in my name and rang up almost $10k in changes with the interest witout ever paying it. Being 20 years old and without a job I didnt have much more of an option to take care of it besides Chapter 7. Since then I have pretty much stayed away from credit and purchased everything I own with cash (did pretty good for myself too). But I am starting to realize that credit is an avoidable must and want to start building mine up. Not too mention I really want a new truck which would help my credit significantly.

[magyar123]

Really depends on the car you want to buy, and the dealer. 4 months after my October 2004 discharge I walked to a Chevy dealer, came right out and told them that I filed and the debts were discharged, and that now I was totally debt free. That I needed/wanted a new car UP to a certain price.
Finance manager called several outfits, and within one hour or so I was approved. True, the interest rate was a loanshark level rate. So be prepared for that......

[phiednate]

Another question:

I have one collection on my credit history for $103. COuld this be the reason noone will give me a car loan?

I have been doing some more research and what I found is that I pay it off it wont help my score any. I also read if I pay it off then it will start the 7 year timeline over again. The charge is almost 3 years old now I am thinking if I want 4 more years its better then 7 more but if this is the factor thats keeping me from a car loan I want to take care of it and get a loan if I possibly can.

[JollyGG]

Another question:

I have one collection on my credit history for $103. COuld this be the reason noone will give me a car loan?

I have been doing some more research and what I found is that I pay it off it wont help my score any. I also read if I pay it off then it will start the 7 year timeline over again. The charge is almost 3 years old now I am thinking if I want 4 more years its better then 7 more but if this is the factor thats keeping me from a car loan I want to take care of it and get a loan if I possibly can.

Try sending them a letter offering to pay the $103 in exchange for a complete removal of the information from your credit report.

[SinkingFast]

Another approach to take with the $103 is,...........

You were a No Asset Ch 7, right?? Under Old Law, all debts, even if the Creditor wasn't specifically listed, were Discharged.

If the debt predates your BK and you don't have the $103, you can Dispute that debt as Included In BK from when you filed.

If you follow JollyGG's advise, be sure to get that agreement in writing. A written agreement helps assure you the Creditor will hold up their end of the bargain.

[JollyGG]

Another approach to take with the $103 is,...........

You were a No Asset Ch 7, right?? Under Old Law, all debts, even if the Creditor wasn't specifically listed, were Discharged.

If the debt predates your BK and you don't have the $103, you can Dispute that debt as Included In BK from when you filed.

If you follow JollyGG's advise, be sure to get that agreement in writing. A written agreement helps assure you the Creditor will hold up their end of the bargain.

Sorry, didn't notice that the debt was before the BK. But you did say the debt was three years old and your BK is two years old so you said it was. I just missed it. Deffinatelly dispute as IIB first.

I also agree. Get any agreement in writting.

As usually SinkingFast's advice is fantastic.

[phiednate]

Well these are the dates I pulled from my credit report:

Bankruptcy:
Date Filed: 6/1/2005 DSP-09/05

Collections:
Date Open: 8/1/2005

Can I still dispute as IIB. And yes mine bankruptcy was a no asset Chapter 7.

[Boscoe]

I would say yes, dispute as IIB. The collections date says 8/05, but the debt relating to this collections activity should have been well before you filed bk, right?

Request IIB, and give the date of your bk and the date of the debt.

[SinkingFast]

Well these are the dates I pulled from my credit report:

Bankruptcy:
Date Filed: 6/1/2005 DSP-09/05

Collections:
Date Open: 8/1/2005

Can I still dispute as IIB. And yes mine bankruptcy was a no asset Chapter 7.

You were under protection of the automatic stay of BK when that acct was turned over to collections. The debt must have existed at the time you filed.

Try disputing IIB first and see what happens. If all else fails, then pay the debt for a written agreement to remove the collections comment from your Credit.

Credit has gotten so tight lately. Mainly houses, but the mortgage market has had a trickle down effect.

We have a friend who was looking to buy a car. Spotless credit he thought. BUT, he's recently gone thru a Divorce. His Ex has one CC run up to the max and another that she's 120 days late on. What's that got to do with the guy getting a car loan??,......... He's listed as an Authorized User on both accts with all 3 Credit Bureaus. Until he pulled his credit reports, he had no idea why he was being quoted outrageous interest rates for financing.

An open collections, even as small as $103, can be a stumbling block to getting a car loan.

[phiednate]

With a bit of research I have found that it seems that in in no asset Chapter 7 discharges even unlisted creditors are discharged.

In an effort to wipe it off my credit completely my plan is to write a letter stating the facts about their discharge and offer to repay if they agree to wipe it off my credit (based on all your suggestions). I dont see why they wouldnt go for this because otherwise they get nothing.

However if they dont agree which is worse on my credit? If it reports on my credit as I paid it or that it was included in my Chapter 7. Thanks for all the help thus far. I would have no clue the best way to go with this otherwise.