Refinanced with Capital One

[brainless twit]

I just got approved for a Capital One refi. Here's a bit of my post-BK auto loan history:

- Bought a 2006 HHR during my BK7 at 18% through Tidewater Motor Credit. Hit a deer in November 2008 and totaled it.

- Bought a 2009 Yaris at 12% through Toyota/Lexus Financial. Had to ask for ONE extension (paid it just a few days past the grace period) and they raised the rate to 12.7%.

- I'm trying to cut out debt as much as I can. I applied with Capital One, thinking I'd be denied since I included a CapOne card in my BK. They approved me for 8.93% (finally back under 10!) and shortened the length of my loan by 1.5 years for the same payment.

So I'm saving almost $7000 over the life of the loan by refinancing and I couldn't be more thrilled. It's been four long years since my BK7 was discharged.

The contract with CapOne disclosed my Equifax score (new truth in lending laws, love it), which was 544. I nearly died - my TU is 647! I'm not sure why there is such a discrepancy but I plan to pull Equifax ASAP to investigate.

Anyway, I'm long-winded as always, but I wanted to share my news in hopes it will help someone.

[LadyInTheRed]

The contract with CapOne disclosed my Equifax score (new truth in lending laws, love it), which was 544. I nearly died - my TU is 647! I'm not sure why there is such a discrepancy but I plan to pull Equifax ASAP to investigate.

Please let us know what you find out. Since TU is the only score I've found that I can get for free, I'd be interested to know whether the discrepancy is a difference in how the two agencies arrive at scores or if it was a difference in what appeares on your reports.

[Amy26]

EQ and TU do not use the same scoring model... this may not be the entirety of the disparity in the scores but it is a significant reason.

[IBroke]

Another reson COULD be that the EQ-score from Cap One was an auto-enhanced score and the TU a "regular" FICO..

[moneyblues]

After 4 years I thought your scores would have been higher than that. Would they explain to you why they are so low or does it take a long time to recover. Did you try and rebuild right after or did you wait. I'm about to file myself and trying to get over the fear.

[LadyInTheRed]

After 4 years I thought your scores would have been higher than that. Would they explain to you why they are so low or does it take a long time to recover. Did you try and rebuild right after or did you wait. I'm about to file myself and trying to get over the fear.

moneyblues, I looked at your other posts. Your credit is already shot. The effect of BK on your credit score is the last thing you should be worried about when deciding whether to file. You can rebuild your credit score. In fact, filing BK may help improve it before too long as the negative reporting gets older.

[moneyblues]

moneyblues, I looked at your other posts. Your credit is already shot. The effect of BK on your credit score is the last thing you should be worried about when deciding whether to file. You can rebuild your credit score. In fact, filing BK may help improve it before too long as the negative reporting gets older.

True my credit is shot but I have to look at other things that will motivate me for the future and I like to see how long does it takes for others to rise above. Do you mind... and I couldn't care less about my scores right now. I'm looking and listening to others for confidence and motivation. What's your point?
I see some scores that take major leaps and some that move rather slow. I simply ask so I would know how slow or fast did he move after bk..What's wrong with that?

[LadyInTheRed]

I'm about to file myself and trying to get over the fear.

What's your point?

My point is that if your fear of filing is based on your credit score, you should get over your fear because it is already a reality. That reality won't change until you take some sort of action.

Just trying to help.

[moneyblues]

My point is that if your fear of filing is based on your credit score, you should get over your fear because it is already a reality. That reality won't change until you take some sort of action.

Just trying to help.

Oh I'm sorry Red, I wasn't trying to throw off on you. I appreciate all the help I can get and I just was trying to understand it all. I do have a fear of filing, which is quickly dissipating Thanks to all of you. I was just trying to see what my life might be like after I file that's all. Oh I am so filing. I am now just waiting on the funds and I was concerned about my tax return because I need that money to start anew. I have a little income that just started but I don't want to count on it just yet because that just happened and I want to be cautious about my moves from now on. I was not offended and I love to have your help. You know more than me right now. Keep me straight Red! lol

[LadyInTheRed]

Oh I'm sorry Red, I wasn't trying to throw off on you. I appreciate all the help I can get and I just was trying to understand it all. I do have a fear of filing, which is quickly dissipating Thanks to all of you. I was just trying to see what my life might be like after I file that's all. Oh I am so filing. I am now just waiting on the funds and I was concerned about my tax return because I need that money to start anew. I have a little income that just started but I don't want to count on it just yet because that just happened and I want to be cautious about my moves from now on. I was not offended and I love to have your help. You know more than me right now. Keep me straight Red! lol

There's always someone around here to keep each of us straight when we need it! Most of what I know about BK, I learned here. I was searching the web for information on mortgage modification when I stumbled on this site and realized I needed to file BK. I hadn't even considered it before that, but was heading there eventually. I read so much here that I was pretty quickly able to go forward without fear. I'm glad you aren't letting the fear get in your way either.

I'm also curious about my future credit score, which is why I checked it only 9 months into my Chap 13. My score was pretty good before filing. The mid score of the three agencies was 735 (Equifax I think). I'm now at 686 "Fair" with TransUnion, the only agency I can get a free score for without handing over my debit card number. I was surprised that my score was that high. You can get your Transunion score at creditkarma.com and then use a tool that tells you how certain events will effect your score. I just logged on and found they have a new feature that gives you your "Vantage Score." They say it's "a new credit scoring model created by America's three major credit reporting agencies to support a truly consistent and accurate approach to credit scoring." Based on my transunion score, they say my VantageScore is 713 with a "C" credit grade. Don't think that is better than the 686 Transunion score. The VantageScore uses a scale of 500-990 while Transunion uses a scale of 300-850. Equifax uses the same scale as Transunion, so that doesn't explain the OP's difference in scores. I don't know whether anyone is actually using VantageScore.

A lot about the scoring systems seems to be pretty mysterious. But, from what I've read, you will probably be able to get credit right after your Chap 7 discharge, but the terms will not be favorable. That seems to improve after about 2 years. By 5 to 7 years after discharge you may be able to get the best rates available. It helps if you start using credit again, but only if you know you can do so wisely. The OP's experience seems to back this up. When it comes to BK and your credit score, time is your friend as long as you live within your means.

[moneyblues]

There's always someone around here to keep each of us straight when we need it! Most of what I know about BK, I learned here. I was searching the web for information on mortgage modification when I stumbled on this site and realized I needed to file BK. I hadn't even considered it before that, but was heading there eventually. I read so much here that I was pretty quickly able to go forward without fear. I'm glad you aren't letting the fear get in your way either.

I'm also curious about my future credit score, which is why I checked it only 9 months into my Chap 13. My score was pretty good before filing. The mid score of the three agencies was 735 (Equifax I think). I'm now at 686 "Fair" with TransUnion, the only agency I can get a free score for without handing over my debit card number. I was surprised that my score was that high. You can get your Transunion score at creditkarma.com and then use a tool that tells you how certain events will effect your score. I just logged on and found they have a new feature that gives you your "Vantage Score." They say it's "a new credit scoring model created by America's three major credit reporting agencies to support a truly consistent and accurate approach to credit scoring." Based on my transunion score, they say my VantageScore is 713 with a "C" credit grade. Don't think that is better than the 686 Transunion score. The VantageScore uses a scale of 500-990 while Transunion uses a scale of 300-850. Equifax uses the same scale as Transunion, so that doesn't explain the OP's difference in scores. I don't know whether anyone is actually using VantageScore.

A lot about the scoring systems seems to be pretty mysterious. But, from what I've read, you will probably be able to get credit right after your Chap 7 discharge, but the terms will not be favorable. That seems to improve after about 2 years. By 5 to 7 years after discharge you may be able to get the best rates available. It helps if you start using credit again, but only if you know you can do so wisely. The OP's experience seems to back this up. When it comes to BK and your credit score, time is your friend as long as you live within your means.

I was trying to live within my means and them no job and that's how I got here but I'm okay now (almost) and I am going to file. I have to pick up my taxes on Monday and file my taxes and then I will proceed from there. I'm actually getting a little excited.