two rebuilding questions

[bigtim6656]

I have two questions.

One I was told a auto loan does no good for a persons credit, if any it is when the debt is paid off be it early or when it comes to terms.

Is there any truth to this at all?

Also I was looking at way rebuild post discharge, my dad had a idea and offered to help. He told me I can get a CD and get a loan against it and the bank would not care about my bk since it is a loan against a Cd worth say double the loan amount. Is there any truth to this and will they be likely to loan to be post discharge?

Also would it effect things if he loaned me the money for the cd right after discharge.

[IBroke]

I have two questions.

One I was told a auto loan does no good for a persons credit, if any it is when the debt is paid off be it early or when it comes to terms.

Is there any truth to this at all?

Complete nonsense. There is even a special Auto Fico-score most lenders use when you are applying for a car-loan. If you didn't have an auto-loan before, you might have a problem then. An auto-loan is a GREAT way to build your credit. The balance doesn't influence your credit usage-ratio and when paid in a timely manner, it shows that you have money because the reported payment tends to be higher than with a credit card.

Also I was looking at way rebuild post discharge, my dad had a idea and offered to help. He told me I can get a CD and get a loan against it and the bank would not care about my bk since it is a loan against a Cd worth say double the loan amount. Is there any truth to this and will they be likely to loan to be post discharge?

Also would it effect things if he loaned me the money for the cd right after discharge.

If the money for the CD would be he HIS money, there should be no issue with the BK-assets. Even if it's your money - as long as you received it as a present AFTER the discharge, it shouldn't matter either.

I'd say you go to a local credit-union and take your dad with you. I can't imagine they would send you away since you are basically offering them money at zero risk if you intend to secure the entire loan-amount with the CD.

You could even own the car free and clear if you secure the loan with the CD rather than the title to the car. I'm not sure, however, if they would issue an auto-loan or a regular installment loan for that transaction. If you have the choice, go for the auto-loan. Maybe they can put a symbolic lien of $100 or so on the car. I have no idea how that would work..

[bigtim6656]

I have a loan now, I had planned on paying it on time through the loan terms to help my credit, though if it would not help I was thinking of paying it off over the next year or so.

Should I go to the credit union and setup say a checking account now or wait till discharge.

Complete nonsense. There is even a special Auto Fico-score most lenders use when you are applying for a car-loan. If you didn't have an auto-loan before, you might have a problem then. An auto-loan is a GREAT way to build your credit. The balance doesn't influence your credit usage-ratio and when paid in a timely manner, it shows that you have money because the reported payment tends to be higher than with a credit card.



If the money for the CD would be he HIS money, there should be no issue with the BK-assets. Even if it's your money - as long as you received it as a present AFTER the discharge, it shouldn't matter either.

I'd say you go to a local credit-union and take your dad with you. I can't imagine they would send you away since you are basically offering them money at zero risk if you intend to secure the entire loan-amount with the CD.

You could even own the car free and clear if you secure the loan with the CD rather than the title to the car. I'm not sure, however, if they would issue an auto-loan or a regular installment loan for that transaction. If you have the choice, go for the auto-loan. Maybe they can put a symbolic lien of $100 or so on the car. I have no idea how that would work..

[IBroke]

I have a loan now, I had planned on paying it on time through the loan terms to help my credit, though if it would not help I was thinking of paying it off over the next year or so.

Should I go to the credit union and setup say a checking account now or wait till discharge.

I'd say you wait until discharge. That makes things easier.

You can certainly use a pre-BK account to rebuild credit post-BK - BUT in order to accomplish that, you have to reaffirm the loan. A ride-through without agreement makes it impossible for the lender to report any payments you make after you have filed.

I'm going to reaffirm our car-loan since I don't owe much and the value is about the same as the loan-balance. My reaffirmation agreement will include a clause that the creditor is going to continue to report my payments. I'll also try to have them agree NOT to include the IIB-notation.

[bigtim6656]

That is my plan also, I am going to talk to them and say hey you can report good payments and get paid or i will keep paying till the jeep is worth less then I owe. I am sure they will agree to report.

I'd say you wait until discharge. That makes things easier.

You can certainly use a pre-BK account to rebuild credit post-BK - BUT in order to accomplish that, you have to reaffirm the loan. A ride-through without agreement makes it impossible for the lender to report any payments you make after you have filed.

I'm going to reaffirm our car-loan since I don't owe much and the value is about the same as the loan-balance. My reaffirmation agreement will include a clause that the creditor is going to continue to report my payments. I'll also try to have them agree NOT to include the IIB-notation.

[Amy26]

That is my plan also, I am going to talk to them and say hey you can report good payments and get paid or i will keep paying till the jeep is worth less then I owe. I am sure they will agree to report.

Are you trying to accomplish this on a ride through? They will not report as the loan technically no longer exists. Even if you're still paying on it its more of a good faith effort on your part. They have already written the loan off and probably collected any insurance claim on it, they are just happy to keep collecting your money for no reason.

But it can't hurt to ask, all they can say is NO!

[bigtim6656]

No my plan is to do a reaffirmation, mainly for the reporting.

Are you trying to accomplish this on a ride through? They will not report as the loan technically no longer exists. Even if you're still paying on it its more of a good faith effort on your part. They have already written the loan off and probably collected any insurance claim on it, they are just happy to keep collecting your money for no reason.

But it can't hurt to ask, all they can say is NO!

[Amy26]

Oh ok... nevermind then ;)