Discouraged from Denials, Now What?

[LivingDead]

Discharged 5/2010
One card each for wife and I, paid each month in full
Credit report cleaned up from misc negatives
Scores hovering around 600

Need a new vehicle as my paid for 2001 is in need of several thousand in repairs. Planned to trade it in for $3k and add a few thousand for down payment.

Applied at my CU Denied (said not enough history since BK)
Applied at Chase (my bank) Denied
Applied at Cap One Denied

Not sure what else to do other than have a dealer shop my application around for financing. I can't fathom taking on a loan with upper teens interest rate though. Looking at a 2007ish with less than 75k miles. Thoughts, suggestions??

[HHM]

You are still within the 2 year window of filing, so you will pay higher interest rates. As you suspect, all you can do is go to a dealership who can shop it around to sub prime lenders.

[Kuya]

I know that it logically makes more sense to find an older, less expensive car. You would think the bank would give you a shot, because you are playing it smart and picking a car that will fit your budget, right? wrong!

The bank will often jack up your loan rate, and shorten your loan terms . . . . driving your payment above your means, when you are looking at a used car . . or cars more than one or 2 years old.

Unfortunately you may have better luck trying to get into an inexpensive new car. . . Like Ford Fusion or something. Banks will often extend lower rates to new cars . . even for risky credit. It sucks, but that's the way it is.

Now, I am not telling you to run out and buy a brand new car . . just giving you some insight to help you make a decision

[Flamingo]

Unfortunately folks eventually find out just how bad that BK can be on their credit reports....what may also be working against you are numerous hard inquiry pulls on your credit report so soon after BK (those stay on your reports for two years). Do you have a prior paid off car loan with one of the major car manufacturers...i.e., GM, Ford.... If you took out a loan in the past, paid it in full and had no late payments, go to one of those dealerships and see what can be done about financing a new vehicle. Past good loans on vehicles is a plus as it worked for us in obtaining a new car in 2006 prior to the discharge of our Chapter 13 with GMAC. We obtained 0% financing and were eligible for for the good credit offers. Otherwise, time is your friend after BK and it may just take you a while to recover from filing but you do need to ensure in the interim that you pay everything on time and not be late with any payments of any kind and your credit will gradually improve.

[LSUTiger32]

Sell your car and use that money and your down payment to just pay cash (sounds like you could do like $6,000) for a car. Tell the bank to take a hike, you don't need them. I just saw a nice Ford Fusion the other day with 40,000 miles (2007 model) for $8,500. People need to sell cars right now, get you a deal and tell the bank to shove it.

[Wantmypeace]

Sell your car and use that money and your down payment to just pay cash (sounds like you could do like $6,000) for a car. Tell the bank to take a hike, you don't need them. I just saw a nice Ford Fusion the other day with 40,000 miles (2007 model) for $8,500. People need to sell cars right now, get you a deal and tell the bank to shove it.

+++