Capital One approved

[needafreshstart]

Just thought I'd share that I got approved from Capital One Blank Check for $20,000 at 11.45%. I am actually looking at getting a less expensive vehicle that also gets better gas mileage than my Escape. My chapter 7 bankruptcy was discharged 01/31/08. Funny thing, the same day I got the blank check package, I also got a pre-approved cc offer from capital one, might apply just to see what I get.

[HHM]

Note, if you do go car shopping, let the dealer try to get you better financing. The Cap One blank check should be your "fall back" and operate as your baseline. Since the dealership will have more options available to them, you very likely might get a better deal. Also, from a pure financial point of view, put some of your own money toward the deal (i.e. don't finance 100%). At a minimum, pay the tax, title and fees out of pocket (no point in paying interest on charges unrelated to the actual value of the vehicle). Even then, I would still recommend trying to put 5-10% + (tax, title, fees) down from out of pocket cash.

To illustrate, lets assume the term of the loan is 4 years @ 11.45%, and that all totaled, the tax, fees, title etc, is about $2,000. If you included that amount in your financing, it would increase your monthly payment by about $50.00, and over the life of the loan, you would pay an additional $500 in interest for the privilege of financing those ancillary costs.

[coma]

Just thought I'd share that I got approved from Capital One Blank Check for $20,000 at 11.45%. I am actually looking at getting a less expensive vehicle that also gets better gas mileage than my Escape. My chapter 7 bankruptcy was discharged 01/31/08. Funny thing, the same day I got the blank check package, I also got a pre-approved cc offer from capital one, might apply just to see what I get.

Can you give some info as to your scores? Also, are all of your accounts reporting correctly (IIB, zero balance)? We want to apply, but I'm scared.

[danaf]

I absolutely agree with HHM. BUT - I would not sign any paperwork with the dealer until all the tallys are in because I don't think dealers will always work in the buyers best interest. And this is speaking from experience. When I bough my car last summer I had a watch on my credit report. So the creditors who were offering had to call me first and I asked them what rate they were offering. Well, it turned out the dealer jumped the gun and took a much higher rate than one I knew I had been offered (cause they have to turn the paperwork around in 3 days so I learned). I had to refi the whole deal on my own - which is what I did the very next month. I went from an 8.9 to a 6.5 - big diff when you are financing. KWIM?

Also - doesn't hurt to do the financing leg work yourself before going into the dealer. Last summer was a big lesson for me. I should have done the legwork myself but was stupid on that because I thought the dealers would choose the best interest rate for me. Well - they don't care. Luckily I was able to turn it around. I also found a better gap insurance for much cheaper and yanked that from the dealer. They knew I was pixxed.

Since you've done bk - creditors know you have to pay. Try credit unions - their rates are very nice, if they accept you.

[cali girl]

Interesting... we discharged in june 2007 and just got denied from Capital One 5 minutes ago. Hmm. I wonder what happened? My scores are 532, 556 and 630. I don't know who they use to check credit scores, though.

[HHM]

Interesting... we discharged in june 2007 and just got denied from Capital One 5 minutes ago. Hmm. I wonder what happened? My scores are 532, 556 and 630. I don't know who they use to check credit scores, though.

Who can really say, did you have any repo's, or missed car payments? Have you taken step to clean up your credit report, to make sure everything is being reported propertly, post BK.

[cali girl]

Who can really say, did you have any repo's, or missed car payments? Have you taken step to clean up your credit report, to make sure everything is being reported propertly, post BK.

Well, I cleaned up Equifax and Experian - somewhat. They are all reporting 0 balances and BK is noted. Some things were deleted but not much. So I don't have any delinquincies on my CR as of now, just the BK and charge offs. Transunion kept giving me error messages and I never did clean that one up. That's why it's the lowest, with a score of 532.

My first car is showing paid off with no delinquincies, and my 2nd car (included in BK) is showing just that. 0 balance and included in BK.

I don't know..

Oh but congrats to the person who got approved! Sorry, I'm in a funk tonight.

[HHM]

Did you surrender that car in the BK, or are you still making payments. My guess is, that is the issue. They see a car as IIB, that may be the disqualifier.

But, I am only speculating.

[cali girl]

Did you surrender that car in the BK, or are you still making payments. My guess is, that is the issue. They see a car as IIB, that may be the disqualifier.

But, I am only speculating.

What is IIB? Yep, I surrendered that car with the BK.

[HHM]

What is IIB? Yep, I surrendered that car with the BK.

IIB = Included in Bankruptcy

Yep, if you surrendered the car in BK, that is probably the culprit as to why cap one denied you.

Incidentally, how is the car being reported on your credit reports?

[coma]

Ok. If an IIB car is an issue, then thatwill probably hurt us, too, even thugh we have three paid car loans prior to BK. We're just going to continue to save. If we have enough cash, we won't be at the mercy of anyone, though I hope the POS ar doesn't kick the bucket in the mean time

[needafreshstart]

I am unsure of my scores post discharge, I checked shortly after filing and they were in the low 500's. I also had a car loan that was IIB that I did not reaffirm. I think several things were to my advantage. 1. I have been with the same employer for 9 years now. 2. My annual income is close to $60,000. I had cut my hours at a part-time job for several months to lower my income for the 6-month look back for bk, as soon as I had my 341 meeting, I went back to working the amount of hours I was before.

I was told by a financial planner that if you ever apply for a loan with a dealer, never accept that day. Dealers will alot of time up your interest rate from what your approved. I always wondered why dealers were so persistent to get you to sign that day. He said to go home and the next day you can call the lender to see what you were actually approved for, it will alot of times be lower than what the dealer quotes you.

I also applied and was appoved for a capital one cc, 0% interest until 2009 on all purchases, no annual fee. Don't know the credit limit yet. I don't plan on using the card, but wanted to have one for emergencies.

[brokeinmichigan]

We, too were approved for a CapOne Blank check @ 12.45% interest, max $30K (YIKES!). However, when we went to the dealership last week, they got us a better rate through either a CU or Ford Motor Credit @ 10.25%. Only 2.2% difference, but a penny saved....

We haven't purchased yet, but will next week (then I will know for sure who approved us!)... BTW, our dealership uses FICO scores when running credit. To our surprise, MY score was higher than my husbands!!!! And MUCH higher than my FAKO scores from our credit monitoring service (TrueCredit). FAKOs are mid-to-high 500s, and FICO was 673!!!

At any rate, definitely check with your dealership...

Good luck!

[HHM]

I was told by a financial planner that if you ever apply for a loan with a dealer, never accept that day. Dealers will alot of time up your interest rate from what your approved. I always wondered why dealers were so persistent to get you to sign that day. He said to go home and the next day you can call the lender to see what you were actually approved for, it will alot of times be lower than what the dealer quotes you.

If the dealership is on the level, it is not that they are doing anything shady, you just need to understand what is happening behind the scenes. Dealerships have authorization from dozens of car finance companies. All those companies give the dealership basic lending criteria and terms (but these criteria and terms are in a "range")...for the credit challenged, the dealership will do the deal based on that info. So, you sign all the paperwork, and go home with the car.

The finance manager must now shop that deal to the car finance companies to see who will underwrite the deal. (i.e. actually finance the deal). Thus, this is why the "final" terms of the deal sometimes get changed, or that deal get unwound (in some states this can be illegal, it just depends). The underwriting finance company has the final say on the specific terms of the deal.

[stephanie4686]

Once you are discharged, how long does it take to show up as discharged on your cr? (does it even show up?) I am desperately needing a car soon and even though I was approved through one of those buy here pay here places I know if I can hold out for a couple of months I will be much better off. I hate taking on a payment, but now that I have found a job I should be okay. My mom has told me the free rides to work stop at the end of the month! lol

Does anyone know if it is possible to refi if you finance through a buyhere pay here dealer?