I got financed w/ a 18% interest rate w/ a high 400 credit score...

[Debbie2]

Hello everyone...Just wanted to let you all know that I did get an autoloan. I went through Car.com, they sent me to my local Nissan Dealer. I got a "FULLY LOADED" 2006 Nissan Altima at 18% interest, it have 44,144 miles.

I was told to keep it for 1 year(paying on time) and then go and get me something I really want.

Did I mention that HSBC haven't came after my other car that I included in my Ch.7? How much more longer will it be before they come after it since my case was discharged on 1-29-09? Will they warn me first or just come looking for it? I still drive the car ya know, even though it's been about 2 mths. since I made a payment...

[optimistic1]

Congrats on your new car. After 6 months, try refinancing it with Capital One or another lender, you can probably get that interest rate down to 11 or 12% after showing some on time payments.

[Stilltheone]

We are 7 months out of bankruptcy and just got approved for a 11.45% loan...so it IS possible.

[OhioFiler]

We are 7 months out of bankruptcy and just got approved for a 11.45% loan...so it IS possible.

That's quite impressive! What percentage downpayment did you make if I may ask?

[Stilltheone]

That's quite impressive! What percentage downpayment did you make if I may ask?

We don't have a downpayment.

[HHM]

That is great.

Many people falsly assume that Bankruptcy effects the "availability of credit", it doesn't; a BK only effects the "cost" of credit. (i.e. interest rate). in the short term (1-2 years).

[OhioFiler]

That is great.

Many people falsly assume that Bankruptcy effects the "availability of credit", it doesn't; a BK only effects the "cost" of credit. (i.e. interest rate). in the short term (1-2 years).

I'm pleased to read this. However, if bankruptcy appears on my credit report for 10 years won't I be paying a higher cost for credit for the entire 10 year period?

[keepmine]

I'm pleased to read this. However, if bankruptcy appears on my credit report for 10 years won't I be paying a higher cost for credit for the entire 10 year period?

It'll just depend on your lenders policy. Some lenders will never touch you with a public record on your credit report. In general, with several years of positive credit history post bk, an old bk loses some of its sting.

[HHM]

I'm pleased to read this. However, if bankruptcy appears on my credit report for 10 years won't I be paying a higher cost for credit for the entire 10 year period?

Keepmine is correct, it depends on the lender. But for credit scoring, the BK is practically factored out after 2 years. Bankruptcy is a one time event. Thus, it only effects your credit score that ONE time. A credit score is weighting of different variables.
The best way to describe it is this (although this is not what literally happens).....

Lets say the day you file BK, your credit drops 100 points.
After 6 months, the BK will account for -75, after a year -50, after 18 months, -25, after 2 years, -0

Note, most peoples scores don't actually drop...it depends on where their credit is when they go in. For the average debtor, the positive effect of cleaning up their debt to balance ratio counter-acts any direct negative of the BK.

[OhioFiler]

Keepmine is correct, it depends on the lender. But for credit scoring, the BK is practically factored out after 2 years. Bankruptcy is a one time event. Thus, it only effects your credit score that ONE time. A credit score is weighting of different variables.
The best way to describe it is this (although this is not what literally happens).....

Lets say the day you file BK, your credit drops 100 points.
After 6 months, the BK will account for -75, after a year -50, after 18 months, -25, after 2 years, -0

Note, most peoples scores don't actually drop...it depends on where their credit is when they go in. For the average debtor, the positive effect of cleaning up their debt to balance ratio counter-acts any direct negative of the BK.

So the near 700 scores my wife and I have may actually stay post filing? We've only had one late payment in the last 4 years. What is the typical point loss for BK? Is there a chart somewhere I can look at? This is VERY good news!

[HHM]

Unfortunately, there is no chart. If you find a chart, it would simply be some one's guess.

You won't stay near 700 after BK, but if you maintain good credit habits after the BK is over, your scores could be over 700 within a year (I have seen it happen on many occasion).