How long before I can get good loan rates for new car?

[mixxalot]

I had my discharge a year ago from a ch7. How long will it take for me to rebuild my credit after the bk to get a decent auto loan from a bank or credit union at best rate? I have some new cards to rebuild my credit and just wondering how long it takes to get my fico up to 750 score after a bk discharge since thats what auto loans are based on.

[BassBoy]

I don't think you need to be a 750 before you can purcahse a car. You can be in low 600's and still get a decent auto loan. What I've learned from my bank, you need to at 620 in order to be in the prime arena....so....a 750 is not necessary. Although, I would say that the higher the scores, the better chance you have at getting better rates.

Have you pulled your credit since your discharge and checked to see if everything is correct and/or got your scores?

[mixxalot]

Yes, I have my scores from November that were in mid 600's FICO wise.

My current car is paid off. I am now spending a lot in repairs so a new car would be little more if I can score a decent auto loan. It has 92k miles and I spent 3k on repairs in November. Now it needs another 3k in repairs so I really dont want to keep if forever as it is starting to cost me way too much to maintain.

Since its been 5 months the last time I pulled my credit or FICO scores, I plan to do it again to see if there are errors on my credit report and to view FICO.

However, I start a new job and realize that lenders want you to have been at your new job for at least a year or two before they will lend you money at a decent rate for the loan. I did get approved for a few new credit cards which helps as well.

Fortunately I will be travel most of the time so I can hold off for another year or two to buy a new vehicle. That should give me time to improve my scores and credit rating.

[BassBoy]

If you wait a year or two, then you should definately be good by then.

As for the new job......if you have maintained employment within the same carrer, but you're making the same amount of money or more, then that's a good thing. This shouldn't be the result of a loan/credit being denied. Mainly, the lender is looking consistancy. Although, I think if you've bounced from job to job (but maintaining the same career), that may hurt you a little.

[mixxalot]

Thanks- I will check in a year or so.

Well I probably will keep my current car for another year or two and then sell it and buy a new one. Hopefully by then I can receive a decent loan.