Trying to purchase car after BK, no luck getting a loan

[littlejuanito]

I've been trying to get approved on an used car loan and everywhere I go I get turned down or want way too much down payment. I'm in a bit of a tricky situation. The car I want is a '92 Nissan 300ZX for $7000(I know it's old, but I love this car and i know how to work on it too). I have $1500 to put down but can't seem to have any luck with that kind of down payment. The dealer where I went was charging me a 24% interest rate on a 24 month loan ONLY and that's if by an Act of God I got approved and with a minimum of $2000 down. The dealer said my credit score was 480, I know that's pretty bad, but I am now debt free and in need of a car since the one I have right now it's borrowed and soon I will be on the bus. I really don't understand why they wouldn't approve me, i mean the bank is gonna make a grip of money on the interest alone and they also have a car as collateral, should something were to happen again. What are my options here? Should I save more for a down? should I get a co-signer? riding the bus is not an option since the car is essential and NO I don't wanna get into any piece of crap car that I am not gonna be comfortable riding in.
Thanks for any input or help.

[SinkingFast]

Just a guess here, but, have you pulled a copy of your credit report and checked it over?? Might be you need to make some corrections there. You can go to https://www.annualcreditreport.com/cra/index.jsp and get a free copy for all 3 CRA's.

About the loan,..... With a low score, you probably won't find a much better deal. A cosigner would probably be a big help.

But try taking a look at your Credit Report. All the corrections, post BK, may not have been made by Creditors. Get that straightened out and your score can come up.

Also, if you had some type of hardship that contributed to your BK,....... loss of job, illness, disability, something out of your control,........ you can write a statement of 100 words or less that will be posted by the Credit Reporting Agencies and available for potential creditors to read.

[littlejuanito]

Thanks SF. I got a copy of my CR. One of the creditors I included in the BK was still reporting the account as open and with a standing balance of $4000. I called the 3 bureaus to get that straighten out. I never received an objection from that creditor nor was I notified if they objected while in the BK process. I wonder what could have happened

[SinkingFast]

The Creditors are supposed to stay current in their comments about accounts, but they seem to conveniently forget to update on BK filers. It's really the Creditors responsibility to report correctly. You might contact that creditor and remind them that they need to change the reporting in addition to disputing with the CRA's.

Have you tried 722 Redemption?? They are a net financier for BK filers.

[StaciMM]

If they objected, notice would have gone to your attorney. They can't contact you directly if you have an attorney while in bankruptcy.

Before applying, work on cleaning up your reports. Get copies from all 3 (Equifax, Experian, Transunion) to check for inaccuracies. Also, don't apply for ANYTHING right now. Putting in a bunch of apps lowers your credit score even further.

Beyond that, don't expect excellent terms. You just filed bankruptcy, which tells the creditor that you have limited resources available to make the payment. That will get better with time. Once you get things cleaned up, and 3-6 months pass after your discharge, you'll probably be able to find financing in the teens.

[StaciMM]

722 redemption (for both redemption loans & replacement loans) only works with people currently between filing ch. 7 and discharge. After discharge, they don't. I'm guessing they have some status for doing that.

[edwards2]

Try your local credit union, Roadloans or Ford Motor Credit. We got approved for a truck for my son 2 months out of BK at 18%. That's high but they told us we could refinance after we established a pay history with them.

[FilingOnMyOwn]

I've been trying to get approved on an used car loan and everywhere I go I get turned down or want way too much down payment. I'm in a bit of a tricky situation. The car I want is a '92 Nissan 300ZX for $7000(I know it's old, but I love this car and i know how to work on it too). I have $1500 to put down but can't seem to have any luck with that kind of down payment. The dealer where I went was charging me a 24% interest rate on a 24 month loan ONLY and that's if by an Act of God I got approved and with a minimum of $2000 down. The dealer said my credit score was 480, I know that's pretty bad, but I am now debt free and in need of a car since the one I have right now it's borrowed and soon I will be on the bus. I really don't understand why they wouldn't approve me, i mean the bank is gonna make a grip of money on the interest alone and they also have a car as collateral, should something were to happen again. What are my options here? Should I save more for a down? should I get a co-signer? riding the bus is not an option since the car is essential and NO I don't wanna get into any piece of crap car that I am not gonna be comfortable riding in.
Thanks for any input or help.

I would recommend for your first car out of bk, a little econobeater you can get for the 1,500 you were going to use for the down payment. My first car out of bk is a camaro... big mistake. Who cares if you can work on it? Parts are expensive, and so is insurance. And so is time off work when you are working on it. I also have a friend with a 300ZX, whom I raced in my Camaro (smoked him). His clutch went out a couple weeks later. My clutch went out a couple weeks after that. I've already spent more on parts than what I paid for the car. Trust me, just buy a little japanese beater that gets good gas mileage. Cheaper on the insurance, no car payment, no ridiculous interest rate. Save your money and buy the 300 at a later date, cash, from a private seller not a dealer.

[littlejuanito]

Thanks to evryone. I'm just gonna save up and buy my car from a private party. A few months from now I will apply for a CC and start bettering my score.

[FilingOnMyOwn]

Thanks to evryone. I'm just gonna save up and buy my car from a private party. A few months from now I will apply for a CC and start bettering my score.

You can apply for a CC right away. I have 2 already, www.householdbank.com & www.orchardbank.com

[StaciMM]

How'd you pull that off? HH told me no because I had an Orchard. That's ok though, I'm not jealous-today was approved for a no annual fee/0% APR for 1 year Providian.

You can apply for a CC right away. I have 2 already, www.householdbank.com & www.orchardbank.com

[FilingOnMyOwn]

How'd you pull that off? HH told me no because I had an Orchard. That's ok though, I'm not jealous-today was approved for a no annual fee/0% APR for 1 year Providian.

Pull what off, having both cards? And why couldn't you?

[edwards2]

Because on the website of Household Bank it says you cannot have but one card with them and Orchard Bank is HHC's too.

[StaciMM]

I got a preapproval for HH, already had the Orchard, and the HH came back as declined. The letter that followed said it was declined due to already having a card issued by HSBC. No harm done though!

[littlejuanito]

What are my odds of getting an unsecured card from either of these two? I think my score is 480. Should I just go straight and apply for a secured one instead?