2 years past ch. 7 discharge and can't get a loan?!!

[hillaryg]

We were discharged Aug 2010, got a 0% cc with no issues 2 months later. hubby got a cc pretty soon after too--- both of our credit scores now 698...we kept our car.
we are hoping to sell our car, use the equity to use as a downpayment toward a more efficient car.
the car we want is private party....
USAA disqualified because of bk yet they are the ones who gave us a cc (which we use for everything and pay off monthly)...we have no cc debt.

how would i go about a private party purchase? i feel like such a freaking looser and we won't ever get a loan
ps our gross combined income is 11k (net is 6k) and putting 5k down needing a 16k loan for 48 mo

[justbroke]

What type of loan are you looking for? I assume that you're trying to buy used, third party? If so, have you tried Roadloans or Capital One Auto? They are only ones that approve third party purchases. There are more hoops to jump through.

The reason you may be having trouble with a "signature" (unsecured) loan is that there is no collateral. If you actually were to get a used-car loan that allows third-party purchases, then the lender would have the car as security and the loan is a little more likely to happen.

Is your income $11K a month or are you talking annually? I hope that you meant monthly!

[tobee43]

Is your income $11K a month or are you talking annually? I hope that you meant monthly!

i was thinking the same question? jb points out cap one. many people have been approved much earlier than 2 years after their discharged with cap one. recently one member got the approval and had the blank check in hand when they went to the dealership. i guess that "blank" check helped them because the dealership offered a better rate. although i'm not certain if that check applied to a new or used car.

don't feel like a loser really. so many people even with excellent credit are having problems getting credit nowadays. something will turn up. you just need to go after it and call as many places as you can to see if they would work with you.

also, i was wondering if you have been a member of any type of credit union? many times they will work with you. (unfortunately, the one we joined nothing flies by them and we have the same concerns with a 12 year old car).

[IBroke]

I even had a previous repo on a Cap 1 auto-loan and they were willing to give me a loan...

[tobee43]

I even had a previous repo on a Cap 1 auto-loan and they were willing to give me a loan...

just curious if you don't mind me asking you, at what interest rate?

[IBroke]

just curious if you don't mind me asking you, at what interest rate?

If I recall correctly, it was somewhere between 10 and 11%. I ended up going with NuVision CU from California at 9.32%. That was a refi-loan.

[tobee43]

so i don't have to guess anymore. it's a really high rate, but a person got to do what a person's has to do, to get to work. at least with the re-fi it saves you a few dollars.

[IBroke]

so i don't have to guess anymore. it's a really high rate, but a person got to do what a person's has to do, to get to work. at least with the re-fi it saves you a few dollars.

Under my circumstances, I don't think that rate was too high. With a recent BK and 2(!!) previous repos (old but still on my report), I knew what to expect.

My initial loan after BK was with a different lender and was at 18% so I decided that paying this rate for 6 months was long enough. I went to lendingtree and received several offers. The 9.32% was the best one and Cap 1 was an alternative but slightly worse. So the refi saved me quite some money..

[hillaryg]

Sorry for the confusion! No it's 11k/mo income!! lol.
I got approved today with my local credit union (mission federal) for 2.49%. I was SHOCKED!
I called usaa and they told me because i have no installment debt and a bk that they won't lend to people in my situation. I guess my current car loan is not showing on my credit since the bk eventhough we re-affirmed the debt. bummer. we thought we were helping our scores with it.

now i just need to sell my car (suv) so i can get my prius

[justbroke]

Congratulations! Shopping around always seems to help.

[tobee43]

hill great news about the loan, excelllent rate!

IBroke, i guess after what you just exlained 9% is much better than 18%.

[screentest]

I'll pipe in on this as well. We have also decided to purchase a new car recently and I just went through the same thing yesterday.

Our numbers are almost exactly the same EXP 681, 11500k monthly, very low debt etc. I applied with my credit union yesterday over the phone and after hearing "everything looked good", I never heard from them again. Called them today to get the news they declined because of BK. This is a credit union that refinanced both our current vehicles 6-months ago to 1.98% with no questions asked. Today, I'm declined a loan because of BK. BK didn't seem to bother them 6-months ago.


Applied online at the local Chevy dealer, approved within minutes; however, they wont give me rate or terms until I pick a vehicle.
Applied for Capital One, approved within minutes for 25K new car loan at 3.61%. Waiting for the blank check.

We will see what the dealer is actually going to offer us when we get there. Very disappointed in the credit union!

ST

[justbroke]

The dealerships like to look at the "entire deal" and that includes down payment and some other factors. With a 680+ credit score, you should get at least Tier 2 financing which is pretty good. Maybe you could get one of those 0% deals!

Remember, that the Auto Enhanced FICO Score is different from the regular FICO Score and is typically higher (by about 20+ points) if you had good experience with auto loans.

[IBroke]

Remember, that the Auto Enhanced FICO Score is different from the regular FICO Score and is typically higher (by about 20+ points) if you had good experience with auto loans.

Yeah, that %#$*! Auto Enhanced Score. That is the reason why I'm still at 10% although my "regular" FICOs weren't that bad. My two repos certainly make an impact. Wow, I will jump for joy once they drop off in 2014!

[tobee43]

Yeah, that %#$*! Auto Enhanced Score. That is the reason why I'm still at 10% although my "regular" FICOs weren't that bad. My two repos certainly make an impact. Wow, I will jump for joy once they drop off in 2014!

geesh, i wonder what's going to happen when we need a car and it doesn't say repo it says voluntarily surrendered?