Declined

[calco86]

Okay,

So I went to get a auto loan today and was declined, I am 4 days out from discharge.
Scores are the following:
Trans - 521
Exfax - 521
Experian- 521

I have about 4K to put down, and looking for 14 to 20K, I have more to put down but I am looking for some help and were I should look for lending.

I got a secured loan for 1K and a secured credit card for 1K. Which we just got 3 days ago.

Please help we need to get another car.

[chicagoannie]

I say this in the gentlest voice....why not find a $4K car to get you through for a while and just pay cash? Your credit scores are still very poor, to be expected just out of BK; they may even have dropped a tad 3 days ago when you got the secured card and the $1K loan. You are moving kind of fast with the POTENTIAL to incur new debt.

[IBroke]

Is the secured card already reporting? If you got the CARD 3 days ago, probably not. If you don't have another CC, your score will increase once this card reports with the best credit-utilization (keep the reported balance below $90).

I assume the secured loan isn't reporting yet as well. Sign up with a credit monitoring service like myfico.com scorewatch or creditchecktotal.com. You will see when these loans are reported. Also, make sure your IIB-accounts are reporting correctly. Once that has been taken care of, you shouldn't have a problem financing a $15K car with $4K down.

[Jacey]

I'd forgo the loan altogether, buy a 4K car and enjoy it. Credit has taken a bite out of all of us...don't let it get you again!

[HHM]

4 "days" from discharge. probably a bit unrealistic...heck, your credit report probably doesn't even report everything properly right now. I agree with others, why saddle yourself with a car payment, BE SMART, no car payment is the best car payment. Pay cash for a car.

[calco86]

Is the secured card already reporting? If you got the CARD 3 days ago, probably not. If you don't have another CC, your score will increase once this card reports with the best credit-utilization (keep the reported balance below $90).

I assume the secured loan isn't reporting yet as well. Sign up with a credit monitoring service like myfico.com scorewatch or creditchecktotal.com. You will see when these loans are reported. Also, make sure your IIB-accounts are reporting correctly. Once that has been taken care of, you shouldn't have a problem financing a $15K car with $4K down.

Thanks for the info, which one should I sign up for with myfico. I see that they have different ones. I am also disputing some information on my credit report. I have like 5 account that are not reporting right, and it seems like that auto loans pull transunion. They are like the last ones to update.

All I am trying to get right now is an AUTO, Credit Card and a loan. I got 2 of the three just need one more and I will be on the road to rebuilding. I was thinking about going to Guaranteed Credit Approval but they want like 50% down, which is a lot.

[espo1357]

I paid cash for a car, about 5k, and the car has been good for a year, but is now giving me problems.

There are very good reasons to buy a car with low milage and finance it. Better yet, for 15-20k, you can find a new car. Its worth it imo. Some might disagree, but I have spend about $500 bucks this year on car rentals while the used has been in the shop.

Find a new car, that you are comfortable in, and good on gas, and you will be fine financing it.

Used cars are junk and headaches.

[chazdiezal]

I don't agree that used cars are junk and headaches, it just depends on the car and the previous owners. I was able to find a car after discharge for $2500 with 173000 miles on it and after putting 9000 miles on it its still going strong. I just had to take care of some normal maintenance items but I plan on staying away from a car payment as long as this car allows me to. With 4 grand one should be able to find a good reliable used car to serve their needs.

[HHM]

I paid cash for a car, about 5k, and the car has been good for a year, but is now giving me problems.

There are very good reasons to buy a car with low milage and finance it. Better yet, for 15-20k, you can find a new car. Its worth it imo. Some might disagree, but I have spend about $500 bucks this year on car rentals while the used has been in the shop.

Find a new car, that you are comfortable in, and good on gas, and you will be fine financing it.

Used cars are junk and headaches.

I agree, I call total BS. There is NO WAY the numbers work out in your favor. I personally have a car that is pushing 10 years. Aside from routine items (tires, brakes, fluids), not a single problem.

It is NEVER more cost effective to have a car payment, period. I don't care how you run the numbers. Now, if you buy a "lemon" that is one thing, but we are not talking about the rare case. Most cars built in the last 10 years, can easily last 10+ years and 200K miles. Let's not forget the lost opportunity. What could you be doing with the money you are not turning over in a car payment. That is when the true cost of car payment becomes apparent. So, let's take IRS standard, $496 per month for one vehicle, avg car loan is 60 months, assuming an ROI of 8%, you would have $37,100 you will LOSE by having a car payment for 5 years. Guess what, that savings is how you are going to buy your next $10,000 car, and so on.

[Amy26]

Used cars aren't junk... some are quite nice! And sometimes its better to buy a used one than a new one for the resale value and that "as soon as you drive a new car off the lot its value depreciates". But, new cars can be nice too.

I, personally, got a new car a week after discharge but my scores after BK were about 600. What does your credit report look like? I would definately check out the report and see what's on it and how things are reporting. Did they tell you what the denial reason was? From experience, I know Ford is a little nicer to post BK people. But you also have to think carefully about your finances because if in fact you do get financed, your interest rate will not be good. A week after discharge I got 17.9% from Americredit on my loan but I was able to refi it after six months with a credit union.

Who denied you if you don't mind me asking?

[disconapper]

I agree, I call total BS. There is NO WAY the numbers work out in your favor. I personally have a car that is pushing 10 years. Aside from routine items (tires, brakes, fluids), not a single problem).

It is NEVER more cost effective to have a car payment, period. I don't care how you run the numbers. Now, if you buy a "lemon" that is one thing, but we are not talking about the rare case. Most cars built in the last 10 years, can easily last 10+ years and 200K miles.

I couldn't agree with you more HHM. I am not even filed yet and I have started researching used cars to get an idea of what I can get for what kind of money. I am surrendering my vehicle (payment of $604, gas of $260 and insurance of $119 for a whopping total of $983 per month which is 80% of my current take home pay). WOW, I've never actually written that down. But I was fully aware that due to my drastic change in financial situation, I can no longer afford the car.

Oh how I dream of the day of driving around in a used little Honda or Toyota, a fuel effiecient low maintenance vehicle. As opposed to the Hummer I drive now, which is an absolute beast. I loved it 2 years ago, but now, I hate it. I've dreamt of setting it on fire, leaving it downtown in the city, or rolling it down a hill. I can not wait to be rid of a car payment. I will eventually purchase a new car but I plan on buying used and driving that car into the ground while I rebuild my credit.

[IBroke]

Thanks for the info, which one should I sign up for with myfico.

I recommend ScoreWatch. Before you sign up, google "Fico discount codes" and you can save every month on their fee.

I recommend creditchecktotal.com as well. Although they deliver FAKO-scores, I'm using them to have daily access to all 3 credit-reports. That tells you right away who reports what and when.

[calco86]

I recommend ScoreWatch. Before you sign up, google "Fico discount codes" and you can save every month on their fee.

I recommend creditchecktotal.com as well. Although they deliver FAKO-scores, I'm using them to have daily access to all 3 credit-reports. That tells you right away who reports what and when.

So I need both of them! How much is that a month?

[thereshope]

I personally have a car that is pushing 10 years. Aside from routine items (tires, brakes, fluids), not a single problem.

My car is pushing 11 years in June. I've kept up with the maintenance like clockwork and it's never let me down. I'm taking it in on Friday to have the brake pads replaced for the 3rd time and the Rotors for the 1st time.

[espo1357]

Maybe I have been unlucky then.

I still think buying a new car for 15 to 20k, is better than a used for 4-5k, because you will have a better ride and you will most likely not have any problems down the line; with the used cars, you really don't know what you are getting!