Car Loan Ride Throughs

[ForumReader]

Today I got a couple of "fresh start" program letters from two car dealerships. One of the letters stated that riding through with car payments may not re-establish credit. Same thing with reaffirmation. Do ride through/reaffirmation with car loans cause problems on one's credit? Anyone had that experience having a ride through with their vehicle loans and the status of their car loans on their credit reports after their car loans has been paid off? Just wondering. Sorry if this is posted on the wrong forum, maybe should be posted under re-establishing credit after BK

[Chowder]

Some creditors report post BK payments, some don't.
At any rate, I believe reporting at all is voluntary.

[liz417]

I just pulled all 3 of my credit reports for FREE (thanks 'catleg' for the info )! Anyway, I did a "ride-through" on both of my cars, both loans are NOT reporting my current payments, so I'll have to rebuild my credit another way.

P.S. My loans are from Hyundai Motors and Honda Finance.

[ska]

I had heard the same. This encouraged me to turn in my lease, which has ended as of today. I am going to be without a car for a couple of weeks until I can save up for a down payment on a used car and my BK is discharged.

Some people and dealerships may tell you that you cannot get a car loan after a BK, but it is not impossible. It may be challenging and the rate may be high, but it is not impossible.

[ForumReader]

Thanks for the info. Now I understand better how these ride throughs work from credit reports. In this case I will rebuild my credit another way later on not right away since I want to live on cash and build up savings over time before getting a secured credit card.

[liz417]

Thanks for the info. Now I understand better how these ride throughs work from credit reports. In this case I will rebuild my credit another way later on not right away since I want to live on cash and build up savings over time before getting a secured credit card.

I was looking into credit cards too and I thought I would only qualify for a secured credit card as my score is shot (in the 400's pre BK) and I have lots of charge-offs on my credit report. Capital One seems to be BK friendly and I was approved for a $500 limit, I don't plan on "charging it up", but maybe using it monthly to pay a utility bill then paying the credit card off right after. I think that will help my FICO score post BK.

[ForumReader]

With CapOne are you satisfied with their terms and fees? I have heard mixed stories about CapOne issuing credit to BK consumers.

With ridethroughs for car loans how does that look like on the credit report? Does the car lender indicate BK?

[liz417]

With CapOne are you satisfied with their terms and fees? I have heard mixed stories about CapOne issuing credit to BK consumers.

With ridethroughs for car loans how does that look like on the credit report? Does the car lender indicate BK?

I've been approved and I should be receiving my card any day now. I will read all the terms and fees once I get the card (there's an annual fee of $39 for the 1st year), but nothing out of the ordinary stood out as I read the disclosure online. Hmmm, I'll have to wait and see now...

As for the Car Loans, on the credit reports the balance should be zeroed out and say "IIB" (included in Bankruptcy). Both my loans are NOT reflecting this, so I've already put in a dispute to change it to IIB since they were on my Matrix.