7 months after file date......

[Flatbroke1]

Seven months after filing I have a $1000 limit Capital One card, my wife has a $500 limit Capital One (we use both and pay off in full each month). We have now been approved for a Capital One auto loan.....0% down, 7.54% APR. We asked for $13,000 and they gave us $15,600! We are looking at a used, very low mileage vehicle. It is well worth the filling and then carefully and wisely using your fresh start!

[Flamingo]

The reasons they offered or gave you more than what you asked for are because you are debt free and you cannot file Bk again for another 8 years. At 0% down and a high interest rate (yes, that is high since due to the BK you don't qualify for whatever advertised/good credit incentives they have) you will be upside down on the car depending upon what you put down, the amount of any trade and how quickly you pay it off or the length of the loan.

While it is good you obtained some low limit credit, due to obtaining that you and your wife are excited about your "fresh start" but need to ensure you don't lose sight and see how you are viewed by creditors. You will get denials eventually which will bring you back to reality. Time is your friend after discharge...don't go crazy trying to get a lot of credit as the hard inquiries will hurt you. Your "fresh start" will come after some time goes by as you have to deal with the BK on your credit reports for many years.

[df04527]

Good advice Flamingo -- additionally to OP -- if your trying to rebuild your credit - the wrong thing to do is pay off the card every month.

35% of scores are calculated from your payment history. If you do not have a payment history - (paying in full) you will not be rebuilding.

You must use the card, pay the payment every month, without fail to re-build that positive payment history.

hth

[Flatbroke1]

Mainly I wanted to let people know that there is hope as far as getting some kind of credit again and a car loan after BK. From the posts I read, having nothing is most everyone's greatest fear. We are much wiser and much more careful. As far as paying in full each month my understanding is that this will be reported as "paid as agreed". While a 7.54% car loan is a "high" interest rate, I am happy that it was not the 12% or 20% that some are getting. After what we have been through in the past and in my point of view, this is all positive and we are happy!

[IBroke]

Good advice Flamingo -- additionally to OP -- if your trying to rebuild your credit - the wrong thing to do is pay off the card every month.

We have to make sure what "paying off" actually means. If the OP regularly uses the CC, he can certainly pay off the entire "amount due" from the monthly statement. The reason is that the OP is probably going to usethe card again between the date the statement was generated and the date the next account closing date where the information will be reported to the bureaus. Paying off the statement balance in full saves a good amount of interest as well.

Now, if you a referring to "paying off" as a $0 balance at the closing date of said CC, I agree.

[Logan]

if your trying to rebuild your credit - the wrong thing to do is pay off the card every month.

35% of scores are calculated from your payment history. If you do not have a payment history - (paying in full) you will not be rebuilding.


hth

I haven't been 'rebuilding' my credit for the last 3 years since my BK and my scores are in the 700's.

I suppose that if I carried low balances and paid someone interest I would have been 'rebuilding' credit and I'd be in the high 700's.

Logan

[IBroke]

If you do not have a payment history - (paying in full) you will not be rebuilding.

I just spotted that. That information is wrong. As long as the account exists, it is "rebuilding" credit and a payment history - no matter what is paid every month and how high the balance is.

[pris72]

Seven months after filing I have a $1000 limit Capital One card, my wife has a $500 limit Capital One (we use both and pay off in full each month). We have now been approved for a Capital One auto loan.....0% down, 7.54% APR. We asked for $13,000 and they gave us $15,600! We are looking at a used, very low mileage vehicle. It is well worth the filling and then carefully and wisely using your fresh start!

If you do not mind me asking, what is your credit score now post discharge? capital one auto finance turned us down. We filed Feb. 26th of this year and it was discharged and closed on June 14th.

[Flatbroke1]

credit score

Actually, I never checked back then so I don't know. It now is around 650/671 or so.