Auto Loan not reporting after all...opinions needed

[jetsfan2010]

Merry Christmas to everyone on the board!
I pulled my credit report and score for the first time since my discharge, and also the first time since I purchased a car(due to necessity, old car was surrendered in the BK). When I bought the current car 6 months ago, financing options were scarce, and the only places that would give me a loan were the "buy here pay here" lot. The finance manager said that they would report the loan to the credit bureau, which was part of the reason I went ahead and took it on, though the rate was less than desirable.

Fast forward 6 months, and now with the discharge behind me, I am weighing options. I have only 1 acct on my credit report with any type of balance(student loan) and my score is about 70 points higher now than it was when I got the car.

I owe about 6k still on the loan, but the car is too old and too many miles to refinance with any credit union. I have 17 more payments to make, but truly dont want to pay on something that long that wont help my score. Should I look to take advantage of trying to get financed post BK now? Is it too soon?

Any thoughts welcome.

[CCsAreEvil]

There are 3 credit agencies (Equifax, Experian, and TransUnion). Have you checked all 3? Sometimes, lenders only report to 1 or 2.

Ultimately, you can go ask your lender which agencies they are reporting to.

[jetsfan2010]

Just a quick update.
I reached out to the lender to ask what reports they do report too, and they stated they used to report to EX, but do not anymore. I stated that part of the reason I took the loan was because it would assist in my rebuilding. They seemed to not care, saying things change. At this point, I am torn on what to do. The car has given me no real trouble, but I would want it to report as long as I am paying for it.

[HHM]

Credit reporting is ENTIRELY voluntary by the lender. There is no rule that they must report anything. The only rule is that IF they report, the report must be "accurate and complete."

On a side note, never buy a car to just rebuild credit...

It sounds like this is a post (after) BK debt, as such, you are stuck with it. You either pay it (one way or the other), or let it go (at which point it will be repo'd and you are in worse shape credit wise).

I'll be honest, your priorities are skewed...a car is FOR TRANSPORTATION, get something that works for you, and if it all possible, DONT finance it, pay cash. Remember, debt is the enemy of financial security.

[justbroke]

I have 17 more payments to make, but truly dont want to pay on something that long that wont help my score. Should I look to take advantage of trying to get financed post BK now? Is it too soon?

One of the lessons which should come from Bankruptcy is that you take on credit only when necessary. You never finance anything unless you really need to purchase that item and you don't have the money. It's always a want versus need situation.

I would never advocate purchasing a credit score which is what appears to be your desire. Continue using the current vehicle until it is paid off. Use the vehicle until it starts to be a problem -- with no car payment. Save all that money from when the car is paid off until you really "need" another car. Now you have a nice downpayment and then can go purchase a new(er) car.

Your score went up because you are doing the right things... not incurring debt and paying on time.

[jetsfan2010]

Credit reporting is ENTIRELY voluntary by the lender. There is no rule that they must report anything. The only rule is that IF they report, the report must be "accurate and complete."

On a side note, never buy a car to just rebuild credit...

It sounds like this is a post (after) BK debt, as such, you are stuck with it. You either pay it (one way or the other), or let it go (at which point it will be repo'd and you are in worse shape credit wise).

I'll be honest, your priorities are skewed...a car is FOR TRANSPORTATION, get something that works for you, and if it all possible, DONT finance it, pay cash. Remember, debt is the enemy of financial security.

Priorities skewed? Interesting, however some assumptions you made in your post are wrong, so let me give you more details before you provide another incorrect reply.

This is not a post BK debt, While I was converting from my 13 to 7 my prior car transmission died. I had no funds to scrape together to buy a car, so (as in my previous posts this past summer note) I had to go to a "buy here, pay here" lot to get a car. When I did the transaction, the sales mgr informed me they did report to the credit bureaus, and this would help my credit. While the interest rate wasn't what I wanted, I bit the bullet to have reliable transportation, with piece of mind thinking at least my on time payments would improve my score.

[HHM]

Well, that is why I said, "it appeared", let's face it, your post is ambiguous as to timeline. That is not my fault, nothing in my answer was incorrect. Credit reporting IS voluntary, they don't have too. Whatever the 'sales person" told you is irrelevant.

However, your post is still somewhat ambiguous as to timeline...so the car purchased was AFTER filing chapter 13 but BEFORE converting to chapter 7? Let me ask it this way, was the car loan 'listed' in the bankruptcy?

If the loan was included in the bankruptcy, the answer is easy, it need not be reported, and if it was, it would simply be listed as "included in BK" with no payment history. If the loan was not included in BK, my above post is accurate to the point that credit reporting is voluntary, you cannot force them to do so. Sorry if you don't like the response, but it is the CORRECT response.

[jetsfan2010]

The loan was not listed in the BK, and was purchased between the conversion.

[HHM]

okay, technically, it was a mistake not to list it. There really is no such thing as "between conversion", you are in an ACTIVE chapter 13 until the Motion to Convert is granted, at which point, you are in a chapter 7. There is no point that you are not in a BK, upon conversion, you would list any new debts, including this car loan.

As such, even if the car loan reported the loan, the loan, technically, is part of the converted chapter 7 and would be "included in BK" on the credit report.

[ValleYum]

Couldn't he just hand it back to the buy "here-pay here" place without any issue (if he was a no asset CH 7)? Or did he miss that boat because he did not specifically list it and his case was a conversion?

[HHM]

Since it is a secured debt, not sure he has the option to simply turn it in. This is not some misc credit card that is 3 years old in the hands of some collection agency that just bought the debt, it is a secured debt that requires a statement of intent and notice to the creditor.

[ValleYum]

Okay - I just wondered since he did not say that he signed a reaffirmation on the car whether that was a viable option or not. Thanks for the answer!!

[justbroke]

As a person who converted from Chapter 13 to Chapter 7, HHM is -- of course -- right on point. There is no period "between" conversion. In fact, everything that happens between the filing of the Chapter 13 and the conversion to Chapter 7, should be listed in the Chapter 7 as new debt!

Unless there's a misuse of the word "conversion" and "converting" being used by the poster.