HELP! 21% Interest????

[spearmint]

Help! I need to get another vehicle BEFORE I file Chapter 13. My 13-year old vehicle is shot. I just called a dealership and they said my credit score is 503! Interest rate would be 21%.

Any ideas what I can do to do better than this?

[spearmint]

bump!

Can anyone suggest anywhere I could try to get a loan lower than 21%?

Has anyone here been offered that high a rate and managed to find a lower one?

It was a Toyota dealership that offered me this - just in case it makes a difference.

[AngelinaCatHub]

Look, there are many good used cars out there. Particularly now. We have a 93 Grand Am purchased at auction for 800 and could have gotten it for 100 after we found out the next highest bid. I put 200 in it for plugs oil, battery and tires, and we have used this thing for four years now. Run's like a top, looks like hell, and is reliable. Purchase a used car from an individual or auction. Wish you luck. 'Hub

[spearmint]

Well, I did want to get a decent one that I knew would last five years, but 20%?

[HHM]

Your circumstances are what they are; you will probably be able to get a better deal after being in a chapter 13 for 1 year than you can now.

[dogbone33]

Hey, just be glad you could even get a loan..... Our credit scores are way better then yours and we can't get one....

[spearmint]

HHM - didn't think I would be able to get one a year into Ch13. That's good news then. Do you think if I get one now - at a high int rate - that I could do a refinance a year into Chapter 13?

[HHM]

HHM - didn't think I would be able to get one a year into Ch13. That's good news then. Do you think if I get one now - at a high int rate - that I could do a refinance a year into Chapter 13?

First, it almost NEVER makes sense to refi a car (cars simply depreciate to quickly for refi's to make much sense), so no, I do not think you will be able to get a better deal. Trust me, pretty much within 2-3 weeks of filing BK, you will offers from every car dealer in your area offering to sell you a car (granted, when they actually look at your case, many of those "offers" will disappear).

[spearmint]

So I guess this may be the best I will get - 21%! Ugh!

[HHM]

So I guess this may be the best I will get - 21%! Ugh!

For now, yes. It wouldn't hurt to shop around and go to different dealers. I personally think you could do a "little" better (just under 20%) if you were in chapter 13 for 1 year.

[spearmint]

I will do that.

I am so distressed. It feels as if my financial life will never get better, especially with 5 years of Chapter 13 coming up

[spearmint]

Okay, I've been giving this some thought. I know I can't go from dealership to dealership looking for a car loan because they each would run my credit and I can't take that hit on my credit score, so I am wondering what the best approach would be. Would it be futile to try my local credit union (I am a member)?

It's a shame I can't get my credit run once and take it with me to the dealerships.

[BK2008]

Okay, I've been giving this some thought. I know I can't go from dealership to dealership looking for a car loan because they each would run my credit and I can't take that hit on my credit score, so I am wondering what the best approach would be. Would it be futile to try my local credit union (I am a member)?

It's a shame I can't get my credit run once and take it with me to the dealerships.

Actually, if you are doing credit inquiries in the same time frame, the hit would count as one. A little bit of a bright spot for you

[HHM]

Okay, I've been giving this some thought. I know I can't go from dealership to dealership looking for a car loan because they each would run my credit and I can't take that hit on my credit score, so I am wondering what the best approach would be. Would it be futile to try my local credit union (I am a member)?

It's a shame I can't get my credit run once and take it with me to the dealerships.

Also, your credit is already trashed, additional inquiries are not going to make it worse.

On a side note, this whole issue about "inquiries" affecting your credit score is more myth than reality. Even FICO concedes that it doesn't really matter any more. It used too (like back in the early 90's), but now that the scoring models are more sophisticated, frequent inquiries are a non-factor...but the myth still lives.

[spearmint]

Would I be better waiting to get another vehicle until I am actuall IN Chapter 13?