Bankruptcy and car loans

[ZeroAccess]

Unfortunately I had to claim bankruptcy approximately a year ago for personal reasons. I had excellent credit before hand and made a decent amount of money. After the bankruptcy I decided to go back to school. I did that for about a year when I went bank into the workforce. I'm now making around 35k a year which is a pretty steep cut from what I was making but the job is less stressful and I get to see my family more so I'm fine with that.

Basically, I'm wondering if anyone has any experience with having a recent bankruptcy and trying to get a car loan. Monthly I can support a 500 dollar car payment so a lot of people are saying just save up and pay cash but I was hoping to get a small loan to help try and re-establish my credit again.

Any help would be appreciated.

[Ran]

It all depends on your credit score. If you filed bankruptcy then your score is probably shot to hell. Any idea what your score is? I almost considered repoing my Mustang, but with a sub-700 credit score (650ish), it would destroy me for the next few years.

Maybe check with some credit unions? My girlfriend's aunt works at a credit union in Cartersville. If you want a referral, hit me up and maybe she can help you out.

[Sammich]

I SAY GET A CAR LOAN FOR 5K, STRETCH IT FOR 5YRS, PAY THE 300/MONTH (WHICH WILL BE OVER YOUR LOAN PAYMENT/MONTH) AND PAY IT OFF QUICKLY...BUILD YOUR CREDIT UP...

[Vteckidd]

I SAY GET A CAR LOAN FOR 5K, STRETCH IT FOR 5YRS, PAY THE 300/MONTH (WHICH WILL BE OVER YOUR LOAN PAYMENT/MONTH) AND PAY IT OFF QUICKLY...BUILD YOUR CREDIT UP...

Be carefull though cause most BUY HERE PAY HERE places dont report that to credit agencies.

Any car under $8000 most places require a $2000-4000 down payment an they are financing you the rest themselves.

So if you do go for a small loan, on a used car, make sure you KNOW they are reporting it to a credt agency

[Sammich]

Be carefull though cause most BUY HERE PAY HERE places dont report that to credit agencies.

Any car under $8000 most places require a $2000-4000 down payment an they are financing you the rest themselves.

So if you do go for a small loan, on a used car, make sure you KNOW they are reporting it to a credt agency

i always finance through the credit union

[Alan®]

Be carefull though cause most BUY HERE PAY HERE places dont report that to credit agencies.

Any car under $8000 most places require a $2000-4000 down payment an they are financing you the rest themselves.

So if you do go for a small loan, on a used car, make sure you KNOW they are reporting it to a credt agency

Actually most cars under 8k can't be financed unless they are brand new. Reason being is that most banks (at least at dealerships anyways) won't finance a car that is older than a certian year (last I checked it was anything older than a '03 is a no go)or over a certian amount of miles.

[stillaneon]

Actually most cars under 8k can't be financed unless they are brand new. Reason being is that most banks (at least at dealerships anyways) won't finance a car that is older than a certian year (last I checked it was anything older than a '03 is a no go)or over a certian amount of miles.

Not Quite.

It all depends on value and Credit Score.

If you want to buy a restored mustang thats worth 200,000 and you need a 100,000 loan, the bank will see value knowing they can get more than their money's worth.

Also, If a bank knows that you will pay (have a good credit score) they will be more likely to finance. I sold a 96 Ford Ranger when I worked at a big dealership and financed it with a 5.5 Interest Rate just because the lady had an 810 Beacon.....

[Alan®]

Not Quite.

It all depends on value and Credit Score.

If you want to buy a restored mustang thats worth 200,000 and you need a 100,000 loan, the bank will see value knowing they can get more than their money's worth.

Also, If a bank knows that you will pay (have a good credit score) they will be more likely to finance. I sold a 96 Ford Ranger when I worked at a big dealership and financed it with a 5.5 Interest Rate just because the lady had an 810 Beacon.....

Your absolutely right if you have a ridiculously high beacon they will bend those rules but if you have average credit they won't.

[Sammich]

Actually most cars under 8k can't be financed unless they are brand new. Reason being is that most banks (at least at dealerships anyways) won't finance a car that is older than a certian year (last I checked it was anything older than a '03 is a no go)or over a certian amount of miles.

i think the car can't be older than 8yrs old i thought...

either way, if not, you can do like i did w/ the teg..i got a secured loan, using the car as collateral

[Alan®]

Unfortunately I had to claim bankruptcy approximately a year ago for personal reasons. I had excellent credit before hand and made a decent amount of money. After the bankruptcy I decided to go back to school. I did that for about a year when I went bank into the workforce. I'm now making around 35k a year which is a pretty steep cut from what I was making but the job is less stressful and I get to see my family more so I'm fine with that.

Basically, I'm wondering if anyone has any experience with having a recent bankruptcy and trying to get a car loan. Monthly I can support a 500 dollar car payment so a lot of people are saying just save up and pay cash but I was hoping to get a small loan to help try and re-establish my credit again.

Any help would be appreciated.

I work at a dealership so let me see if I can help. The biggest thing is whether or not your bankruptcy has been dischraged. If it has your good to go and will basically all just depend on your Beacon score. If your BK however hasn't been dischraged then I can pretty much guarantee you that you won't be able to get a loan.

[WhiteAccord]

I gotta agree with PBS, that would be one way to steadily increase your credit.

[Sammich]

also...if u need any furniture...get it on a small loan..pay it off quickly and ull be straight

[Nissan Sean]

i thought after declaring bankruptcy, your credit was F'd for like 7 years, and you werent allowed to get credit til the seven years were up. i dont know. i culd be completely off. GL either way. it aint gonna be easy.

[Alan®]

i thought after declaring bankruptcy, your credit was F'd for like 7 years, and you werent allowed to get credit til the seven years were up. i dont know. i culd be completely off. GL either way. it aint gonna be easy.

Determined by the courts.

[Sammich]

i know it takes 7 years for a derogatory claim to clear off your credit

[Alan®]

Now you can always try going through your own bank or credit union but 90% of the time if you go to a dealership what I told you will be the case.

[Alan®]

There's a bunch of different ways to go about getting a loan but like I said in his case. Unless his BK has been discharged his real only option is going somewhere that knows him.

I gotta head out. Got a meeting to go to. Zero if you have any other questions you can pm me.

[ZeroAccess]

Ok sorry for the delay ya'll respond quick.
I know the bankruptcy has been discharged so I'm good there.
I do not know my beacon score at the moment but I know before the bankruptcy my score was around 780 I think...
I'm not realy certain what type of car/truck I want to try and get. I agree with the buy here pay here places, a friend of mine has dealt with like 5 or so and none of them did the credit score thing even though they said they would.

I know my chances of getting this particular vehicle is slim but there is a 93 civic hatch for sale here for 6k and I would love to get that vehicle but I have a strong feeling no one would finance me. My chances of obtaining a new vehicle at a high interest rate are better than that.

[Sammich]

i dont think that model civic books out at 6k...so getting a secured loan w/ the civic at a collateral..ur best bet would first be check the nada book value, then go from there...

2ndly, go check your score at freecreditreport.com..make sure to cancel afterwards or theyll charge ur card..that way ull know what ur score is and u can go from there also..

[Echonova]

2ndly, go check your score at freecreditreport.com..make sure to cancel afterwards or theyll charge ur card..that way ull know what ur score is and u can go from there also..

1st: You do know all three credit agencies have to give you a free credit report once a year if you ask for it don't you????? Freecreditreport.com is for losers...

https://www.annualcreditreport.com/cra/index.jsp


2ndly: Never ask for finacial advise on IA, but since you did... @ 35k you have no buisness looking a 500/month car payments. Maybe your wife makes bank or some other issue that I don't know about (or need to for that matter) but don't make the same mistakes that made you file in the first place. Get a beater for 1k and drive it 'till the wheels fall off and you're a little father away from your Bankruptcy.

[civic95]

2ndly: Never ask for finacial advise on IA, but since you did... @ 35k you have no buisness looking a 500/month car payments. Maybe your wife makes bank or some other issue that I don't know about (or need to for that matter) but don't make the same mistakes that made you file in the first place. Get a beater for 1k and drive it 'till the wheels fall off and you're a little father away from your Bankruptcy.

That's what I was thinking....