7 Months out of BK and still 22.50%!!!

[HopeFaith]

Urghhhhh! I applied for an auto purchase/refinance loan (my current interest rate is 20.99%)... and here's what I was offered;

***HSBC Auto: DECLINED
***Capital One Auto Finance: DECLINED (Letter: Too many del'q and too many inquiries, I have 15 inquiries in 2 years).
***Roadloans.com: $18k - 22.50% for 6 years

I discharged over 6 months ago, my credit disputes are complete, I didn't include any of those lenders in the BK, and 2 of my scores are in the mid-600's. I've also made 10 months of on-time car payment on a loan that I received after I filed, and have 2 new CC's since discharge.

What am I doing wrong, any advice? Please tell me your experience with the auto situation after BK!

[lrprn]

What am I doing wrong, any advice? Please tell me your experience with the auto situation after BK!

A few questions first.... Have you worked to clean up your credit report to remove all inaccuracies? What are the delinquencies that were mentioned? And why do you have so many hard inquiries (averaging between 1-2 every other month) over the last two years?

[BassBoy]

I think lrprn is asking the right question here: What are the delinquencies? If these were prior to your filing BK, these could be hurting you. Even if the delinquencies were on older accounts from a few years ago that have been closed. Lenders look at your past credit history, so even though the BK is there, if you had a good payment history years prior to your BK, you're credit may not be all that bad.

Having the high rate like your what you've been quoted is not unheard of. It's expected that we will pay dearly for our mistakes. On the other hand, 22.50% is just plain nuts, and I feel you could do better than that.

[HopeFaith]

I haven't tried to get dealership financing yet. I have so many inquiries from trying to refinance out of our mortgage (ARM) last year, they are haunting me now. Yes, cleaned up our credit completely. The only thing is, TransUnion and Equifax are only reporting a few delinquencies, from the 3 months prior to filing (they wiped out the payment histories). However, Experian is reporting complete payment histories prior to the BK... so 90 days on all the CC's up through the file date. Which is probably why my Experian is so low. Unfortunately, all 3 banks that denied me pulled Experian. I'd love to find a bank that doesn't pull Experian - and I think I might be okay. Maybe I'll ask on a new post...

[debtmonster]

If I could get approved for $7300 and I paid a whopping 22.5% on a used car, after taxes and $2000 down, my payments would be a whopping $227/mo. @ 36 mo.

Why is it impossible to get loans on 7 year old cars that are priced cheap?!?! This would make it easier on all of us if we could get cars without $500/mo. payments. I don't want an $18,000 dollar car. I want a $7,000 one. Why is it so difficult for banks to comprehend this!?!?!?!

This BOILS MY BLOOD like you cannot imagine. I am tired of being ripped off. This is what caused my problems from the start. I always had to get brand new cars to get the best interest rates. But then you end up losing out on MASSIVE depreciation on the car!

This is what the "bankruptcy reform" of 2005 should have addressed. Instead of screwing us people out of going BK, they should have mandated that banks allow people to finance 7 to 12 year old cars to achieve affordable payments.

[CindyLou]

Have you tried Christian Community Credit Union. They refi'd me about a year out of BK at 6.75......

[debtmonster]

Have you tried Christian Community Credit Union. They refi'd me about a year out of BK at 6.75......

Don't need a car in a year. Need it immediately after the trustee takes back both of our cars. That's the problem with all of these financing deals. These people are never there for you when you need them the most.

[CindyLou]

You are looking to refi, right? Well, I don't think there is a year rule with them or anything. I refi'd at a year. You could try them and see. Ask to talk to someone in the loan dept before you apply and they can give you an idea of whether you will qualify.

[debtmonster]

You are looking to refi, right? Well, I don't think there is a year rule with them or anything. I refi'd at a year. You could try them and see. Ask to talk to someone in the loan dept before you apply and they can give you an idea of whether you will qualify.

No, both are so upside down, it's not worth it. I want to be able to find another car at wholesale price from a private person and finance it that way.

I have two cars I wanna give back. One was nearly $40,000. The other one is out of warranty with over $1,000 in repairs needed as of today.

[onlycashnow]

Social lending

Have you looked @ www.prosper.com ?

[debtmonster]

Have you looked @ www.prosper.com ?

They turned me down. That was one of the first places I checked.

I can't get a new car anyway until after the discharge. The trustee could take it away.

[tiredofdebt1]

Contact Prestige Financial.......right after my 341 I was approved at 12%........and your rate drops half a % every 6 months if you pay on time and keep up with your auto insurance. I haven't had any issues and I have had my vehicle a year in Nov.