Got denied with my Credit Union.. what now?

[snapfish96]

I discharged from Chapter 7 last week. Unfortunately car is on the last hoorah, need a used reliable car. I decided to apply for Loan through my credit union. My current credit score is 635. I got the results and got DENIED . I didn't go directly to a dealer hoping i get a better rate through CU. I guess not.

Question now... Do I still have a chance if I apply directly through dealership? What about applying online? I am just worried now they will again do a hard pull on my credit score...

Please help. Thanks
Trent

[mrskal]

If you shop it all within two weeks, you only get one hit. I would go ahead and go to dealers and do online and see what you come up with.

[Flamingo]

There is no guarantee you will be approved for a car loan anyplace so soon after a BK discharge. If you are able, your rates/fees will usually be sky high. Also, usually when one is shopping for a mortgage or vehicle, all credit inquiries during a two week window are counted as one hard inquiry by creditors because many people shop around for mortgages and vehicles and have multiple applications. What looks bad is someone fresh out of BK trying to get a lot of credit at one time...

[helpmeout]

3 weeks ago I got into an accident. I knew the car was going to be totaled (I was right) and started looking into financing options. I didn't apply at first, what I did was go to my bank and ask them what my chances were with a recent (closed in July 2010) Chapter 7 BK on my record. I was told that I would likely be denied. I came onto this board and went to one of the stickies about buying a car as they had links to online places that would lend to high risk borrowers. I contacted Capital One and asked them about it. They said that as long as I was closed, I shouldn't have a problem. I went with Capital One and got a decent rate. And I only ended up with one hard pull as they were the only place that I officially applied with.

Sometimes if you give information about your credit history and your bk before you do an application, they may tell you what your chances for approval are and you can avoid a credit check that may show on your report.

[snapfish96]

I applied for Capital One and I was approved for $14400 APR 10% 60months. I was really surprise but glad I got a lower rate than I expected. Now at least I have a buying power since I got my own loan. Off to the dealers this wknd.

[mikemike]

I applied for Capital One and I was approved for $14400 APR 10% 60months. I was really surprise but glad I got a lower rate than I expected. Now at least I have a buying power since I got my own loan. Off to the dealers this wknd.

HOw much down?

[snapfish96]

No down.

[enginegirl]

I was able to get a loan through Chase at 7.7% I got it right before I filed but at that time I had not paid a credit card well over 12 months or my 2nd mortgage. I did however put $8000.00 down....

[nc73]

You guys simply amazed me at how much you're willing to spend on a car...and get a loan fresh out of bk to pay for it.

[helpmeout]

You guys simply amazed me at how much you're willing to spend on a car...and get a loan fresh out of bk to pay for it.

I didn't have a choice. Someone rear ended me and my 2007 Corolla was totaled. I could have bought a clunker, but I need a reliable car as I do have a commute to work. Plus, if I receive notice of foreclosure today, I wouldn't have had the money for rent.

[helpmeout]

I applied for Capital One and I was approved for $14400 APR 10% 60months. I was really surprise but glad I got a lower rate than I expected. Now at least I have a buying power since I got my own loan. Off to the dealers this wknd.

Did you read the requirements of the loan? If the car doesn't meet the 110% of FMV, then you will have to put money down. I didn't have a problem as I got my car for considerably below Blue Book value. Had it been sold at Blue Book value, I would have had to put money down.

[snapfish96]

Did you read the requirements of the loan? If the car doesn't meet the 110% of FMV, then you will have to put money down. I didn't have a problem as I got my car for considerably below Blue Book value. Had it been sold at Blue Book value, I would have had to put money down.

I verified and the loan I was qualified for was no down. Only downside I have to get it from the authorized dealership.

[snapfish96]

You guys simply amazed me at how much you're willing to spend on a car...and get a loan fresh out of bk to pay for it.

I have no choice. I need a dependable car to get work everyday.

[dumpinmydebt]

We could choose to not get a loan, but we plan on getting a small one (as we'll have $5k to put down) for the purposes of rebuilding our credit. We also need a dependable car. The one we have now is close to $90k miles and it has been having a few kinks, so I expect something to happen here soon. I really want a fuel efficient vehicle also to help cut down on gas expenses.

[helpmeout]

I verified and the loan I was qualified for was no down. Only downside I have to get it from the authorized dealership.

Mine was no money down, as well. As long as the car I bought met the LTV %. If it didn't, I would have to pay the rest.