Denied loan by CU....now what?

[brokeinmichigan]

So, even though we were encouraged to apply for a used car loan by the lovely folks at our CU, we rec'd notification that we were not approved. They state "Bankruptcy" and "Delinquent Credit Obligations, Past and Present" as the reason for denial. It looks as though they only pulled TransUnion.

So, what do you more knowlegable folks recommend? CapOne Blank Check? Special financing at dealership? RoadLoans? I really don't want tons of hard pulls on our credit, so I'd like to go with the one most likely to be approved first.

We have about $5-6K saved for a downpayment.

Any guidance would be greatly appreciated....

[emoney]

OK, what does your three credit reports look like? Are they correct. If not you have some work to do.
I would also talk to the CU in person. Ask what there FICO score cut off is. Do not play the game and not understand the rules.
Stephen Snyder who has BK progams had a weekly news letter a couple of weeks ago on this subject. You may find this report on the web.
Do apply for credit until you know their rules, just go somewhere else.
If you just have to have car you may be forced into buying a new one.
regards,
emoney

[brokeinmichigan]

Thanks for the reply, emoney--
Our credit reports are getting cleaned up...it's a slow process, but I've sent letters, etc, and things are beginning to show as Included in BK, 0 balance, etc. My scores are low (mid-upper 500s), my husbands all 600+.

I think we'll go talk with our CU loan person face to face. If that's all it takes, it will be time well-spent.

Thanks again for the advice...I'm going to Google your Stephen Snyder fella now....

[emoney]

Have you established one or two securied credit cards accounts. First National Bank of Omaha was who I used and the cost was only $20/year. Another way for you is to buy a $2500 CD with your savings and borrow against the CD. These are two ways the will speed your re-entry into the credit markets. Just make sure that you pay everything on time and the CC in full. No one I know can win the financial war paying a rate of interest about 10%.
Both of these good credit reports to your file will speed your recovery.
regards,
emoney

[wilbur4321]

Perhaps a silly question, but can't you buy quite a decent used car with that 5-6k you have saved?

--randy

[325Falcon]

$5K - $6K goes a VERY long way in the used car market especialy if you go with a private sale!! Not so far if you go to a used car lot.

Check craigslist for your local AO and you will find some great buys for $5000 then you can save or spend the other grand. Just think you wont have any payments on the car and will will also save big time on your insurance!!

[tiredofdebt1]

Toyota Dealerships

[brokeinmichigan]

From what I understand, Toyota is VERY BK unfriendly...so hadn't considered them....Is this correct? Maybe they've changed?

Also, what about leasing? Spoke with the finance guy at one of our local dealerships, and he mentioned leasing as a good option right now. Lease for 2 years with low payments, while continuing to clean up CRs and raising our credit scores with ontime payments, etc....Then, at the end of the lease, we'd be in a better position for low interest loans on a vehicle to purchase.

Any thoughts?

[brokeinmichigan]

We could probably find a good car for $5-6K, or use that as a downpayment. However, we really want to use this opportunity to begin rebuilding our credit, too, and we won't be able to do that if we purchase of a vehicle outright (private party sale).

I did recently get a CrapOne MC (unsecured) with a 0% APR for the first year (then 14%, but I'll be paying it off every month anyway, so that won't matter). So, that's a little start in the rebuilding process, but DH hasn't done anything yet...but his scores are better than mine (were much better before BK). I've encouraged him to apply for a CC after we get this car thing figured out...just to start creating new TLs.