I've been a long time reader of these boards, but have only posted a few times, but I wanted to post about our experience these last two days and hopefully encourage others that you CAN rebuild after bk!
Our BK was discharged in July, 2009. We surrendered a vehicle and got a 06 Chevy Uplander with Santander for 28% rate about 2 months after BK. EEK!
This was a necessesity as we have 4 kids and needed a dependable van. Fast forward 2 1/2 years......My husband has 3 CC and 1 Kohls card. I have 3 CC, 1 Kohls card and 1 Target card. Our 06 van now has 100,000 miles, a slipping transmission and a knocking engine which just started on Thursday. We knew it was gonna cost more to fix than it was worth so we decided to see what kind of deal we could get if we traded it in.
I reviewed this forum to see what lenders were bk friendly and decided to try capital one. We did get approved for up to $28,000 at 7.6%. I was super excited about that, especially going from 28% two years ago! The only problem was the negative equity. Becuase of such a high interest rate we only paid down about $2,000 of the princable. The dealership offered $4,000 for our trade but said that Capital One would only do 110% LTV. Now we were stuck again. Our only option at this point is to get a new car which would hide the negative equity in the rebates and car value. Definatley not my first choice, but better than spending thousands fixing a dying car. We agreed to let them find a better finance deal for us and guess what???? CHASE FINANCED US FOR 1.9%! 1.9%!!!!!!! I about died!!! We ended up with a 2012 Dodge Grand Caravan, and our payment is just slightly higher than what we were paying before! (definately worth it, espeically since now we have a 100,000 mile warranty) Only this time 98% of our payment will be going to the princaple rather than the interest!
We ran our scores here at home and my husband and I are both around 625. The dealership ran it and they came up with 670. So I want to say thank you so much to all who contribute to these threads and let you know how much you've helped us stay on track after bk. Next up..... buying our first home!!!!
Our BK was discharged in July, 2009. We surrendered a vehicle and got a 06 Chevy Uplander with Santander for 28% rate about 2 months after BK. EEK!
This was a necessesity as we have 4 kids and needed a dependable van. Fast forward 2 1/2 years......My husband has 3 CC and 1 Kohls card. I have 3 CC, 1 Kohls card and 1 Target card. Our 06 van now has 100,000 miles, a slipping transmission and a knocking engine which just started on Thursday. We knew it was gonna cost more to fix than it was worth so we decided to see what kind of deal we could get if we traded it in. I reviewed this forum to see what lenders were bk friendly and decided to try capital one. We did get approved for up to $28,000 at 7.6%. I was super excited about that, especially going from 28% two years ago! The only problem was the negative equity. Becuase of such a high interest rate we only paid down about $2,000 of the princable. The dealership offered $4,000 for our trade but said that Capital One would only do 110% LTV. Now we were stuck again. Our only option at this point is to get a new car which would hide the negative equity in the rebates and car value. Definatley not my first choice, but better than spending thousands fixing a dying car. We agreed to let them find a better finance deal for us and guess what???? CHASE FINANCED US FOR 1.9%! 1.9%!!!!!!! I about died!!! We ended up with a 2012 Dodge Grand Caravan, and our payment is just slightly higher than what we were paying before! (definately worth it, espeically since now we have a 100,000 mile warranty) Only this time 98% of our payment will be going to the princaple rather than the interest!
We ran our scores here at home and my husband and I are both around 625. The dealership ran it and they came up with 670. So I want to say thank you so much to all who contribute to these threads and let you know how much you've helped us stay on track after bk. Next up..... buying our first home!!!!
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