Credit Union Auto Loan after BK?

[sguerra923]

Hi guys/gals,

I just purchased a car and I want to make payments for a year and refi it under a credit union. My question is are credit unions strict in terms of having a BK? Has anyone refinanced with a credit union with luck? I also have a saving account with my credit union. Thanks in advance.

[yoyoma51]

We joined a new credit union about 2 months before filing ch. 7. We BK'd our old credit union.

About four months after discharge we bought a used 2007 Cobalt for my wife and the CU financed us at 6.25%. Then in April of this year, I had to replace my car. We bought a 2008 Sonata and they again financed us at 6.25%.

They didn't seem to have much of a problem with us, but our FICO scores were already about 640-645 when we bought the first car. We had pretty good scores when we filed, so that may have made a difference.

Also, we were upfront with the personal banker and told her right away we filed ch. 7 recently and explained our situation.

Good luck!

[sguerra923]

We joined a new credit union about 2 months before filing ch. 7. We BK'd our old credit union.

About four months after discharge we bought a used 2007 Cobalt for my wife and the CU financed us at 6.25%. Then in April of this year, I had to replace my car. We bought a 2008 Sonata and they again financed us at 6.25%.

They didn't seem to have much of a problem with us, but our FICO scores were already about 640-645 when we bought the first car. We had pretty good scores when we filed, so that may have made a difference.

Also, we were upfront with the personal banker and told her right away we filed ch. 7 recently and explained our situation.

Good luck!

Sounds good.. I have some questions though I just signed up for a savings account with the credit union.. when you signed up for the CU are you using them as your primary bank? Because im just dropping about $50 every paycheck for that savings to show history. My credit score is around 600 and my current APR right now is 8.5 with toyota financing but I cosigned with someone. I want to make payments for about 6 months and then refi with the CU and be alone of the loan. Do you guys think I would have a chance for a lower APR? Man that would be great if I could get it down around 6%

I have a credit card I got 3 months ago and been making payments on time and have this car loan now and WILL be making payments on time. So hopefully around the 6 month period I should be around 630 (crossing fingers). Thanks again for you input!

[Stilltheone]

Our local CU won't touch us until we are 2 years out of discharge. Since that is next year July, we plan to refi my husband's car with them next year.

[sguerra923]

Our local CU won't touch us until we are 2 years out of discharge. Since that is next year July, we plan to refi my husband's car with them next year.

Whoa.. hopefully I don't have to wait 2 years for my CU.. I'm only coming up to a year out of discharge..

[sguerra923]

well I emailed customer support and they said usually the CU wants the BK to be seasoned for 2 years.. So looks like I have to wait 1 more year.. well in the meantime I could make my current auto loan payments and credit card payment to build the score back up... Hopefully I have my job by then 4 people just got laid off today.. bleh..

[yoyoma51]

sguerra923-

Yes, when we joined them (about 2 months before we filed Ch. 7), they became our primary credit union. They have had our checking and savings since the beginning.

[sguerra923]

sguerra923-

Yes, when we joined them (about 2 months before we filed Ch. 7), they became our primary credit union. They have had our checking and savings since the beginning.

Thanks for the info yoyoma.. Looks like I'll just wait couple months before my 2 year discharge to refi with the CU..

[zimbra]

It never hurts to stop in or call and ask. I am refi-ing my car that I bought weeks after my discharge (about a year and a half ago) with a credit union I have no previous history with. I am going from a 16.9% rate to a 7.04% rate and am doing the happy dance. Lender's have guidelines, but there is always room for negotiations.

Best of luck!

[Intoodeep80]

My local CU is very BK friendly. I was discharged April 2009, and they said with my current FICO score regardless of unseasoned bk7, they would give me a boat loan - no problem - but I'd need 30% cash down.

To me, thats not bad. Ive always put 20-25% on my boats in the past anyways!

However, the CU said the more I use their services, the better rate and lower down payment I would need. So I opened a 'secured' loan for 4.25% for a year and a CD that I put ~10% of my paycheck into every 2 weeks. Im going to build payment and savings history with that until next April/May and try again.

I would say if your CU is telling you to wait 2 years for a loan - I'd either speak to a different representative or find a new CU!

[goingcrzy]

Does anyone know if USAA is bk friendly? I am discharged and was looking to join a new CU in hopes of getting a good car loan deal

Thanks

[sguerra923]

Does anyone know if USAA is bk friendly? I am discharged and was looking to join a new CU in hopes of getting a good car loan deal

Thanks

You can actually call the CU and inquire about it. That's what I did and most not all want you to be at least 2 years out of being discharged..

[carbk]

It seems like a lot of the smaller Credit Unions are more BK friendly than the larger ones -I know the ones here in Southern Cali must be Anti-BK (regardless if you BK'd them or not) My CU for example which I've had 2 -30k+ auto loans with EXCELLENT payment history said I have to wait 5 years before they will CONSIDER approving me for a loan.

[Amy26]

I contacted my local credit union that we joined after bankruptcy and when I mentioned the word and asked if they were friendly towards it she kinda laughed and said no. So, I guess I joined this place for nothing.... lol.

[Intoodeep80]

I contacted my local credit union that we joined after bankruptcy and when I mentioned the word and asked if they were friendly towards it she kinda laughed and said no. So, I guess I joined this place for nothing.... lol.

Who exactly did you ask?

If you asked a teller, or a customer service rep that is there just to open new draft/savings accounts, they dont know *anything* about extending credit.

I sat down with a loan officer from my CU. They printed out their guidelines for extending credit to those with less than stellar credit. Bankruptcy is no problem, as long as its been discharged.

I'd either talk to somebody else at the branch (eg. loan officer) or find a different CU. Nobody forced you to join that CU either... ask questions FIRST before you join. Call around and ask "Ive been discharged from my bk and want a CU that will help me rebuild and will extend credit to me".