Getting approved

[iwhite80]

So I applied for a car loan through my credit union and was denied. We are not yet discharged ( 7-12-2011) but my husband starts a new job and we need a car asap. I submitted an appeal to my cu asking them to reconsider with a letter detailing my past credit problems. If this does not work, any suggestions would be greatly appreciated.

Scores are

550 - EQ
540 - EX
550 - TU

[disconapper]

Finding a loan before discharge may be difficult. My attorney referred me to Prestige Financial, I've done a little research on them, the message boards are riddled with complaints, however they specialize in lending to bankruptcy customers, including those pre-discharge. Be prepared for a high rate loan, that's for sure.

You can also go to a buy here/pay here dealership, but odds are you are going to get a bit of a clunker car with a high rate loan.

Are you able to buy an old beater for cash? This would allow you to be discharged, save some money and rebuild your scores a bit. You will also have lower insurance on a car that is not financed. This is the route I am taking, assuming everything goes according to plans.

[justbroke]

The credit scores listed are very low. The score "bump" from discharge may not even help. May I suggest just purchasing a "beater" with cash, and then waiting for your scores to rise? Generally speaking, most debtors purchase "new" cars before filing. There is never a guarantee you can get a car after filing. There are many factors though. If you had poor history with car financing before filing... that will come back and haunt you after filing.

There are only a couple of companies that will lend with bankruptcy and poor credit. You could try Santander (USA) or USBank, but expect extremely high interest rates (at least 20% or more!).

[malf1204]

I do not know where you are in Maryland but Hagerstown Ford has been sending me letters since I filed. The letter says they finance people before discharge often on the day of the 341.

[Kuya]

I had been approved with Roadloans prior to discharge . . but it was about 17% and I was not that desperate.

Your CU probably will not budge . . . seeing that you are not yet discharged . . but good luck.

[daxtell]

before my discharge i researched every single used and new car dealership in my area and called and asked questions. i live in a big metropolitan area. the offers were pretty consistant: i needed some sort of downpayment or trade for anything they offered, all would not sign any contract without a discharge or letter from attorney before discharge and there was even one dealership that put a device on your car that shut the car off if you were late on payments. all were high interest rates. i too heard about prestige financial and the research and reviews out there on them were horrible. i also tried cap one auto finance a few weeks before discharge and was denied. however the weekend after discharge they approved me at 10% and my scores were around 600. it helped me immensely as i drove a 20 year old jeep on its last leg and really had no down payment. so i used that cap one auto offer for a nice used certified car under 10k that is still under warranty with a local dealer who had other incentives like free inspections and the powertrain was covered for life etc...if you can wait til the discharge it might be worth it.

[LSUTiger32]

You haven't even be discharged yet and you are looking to pick up a car loan? What did you think they were going to say? Wait a little while, like forever....but if you have to get a loan (which you don't) then at least wait until discharge. You will get a bump in your scores after discharge, so that then you might have a chance. That said, you do realize that you can buy a car without a car loan, right? Not trying to be mean, just give it some thought. Don't jump back into the same mess. I bought a $2,500 car with cash after I filed in August 2009 (I saved the money I was sending to credit cards for two months after I filed) and I am still driving it today. It has 140,000 miles on it and I drive it 85 miles a day round trip to work. It can be done.

[backtoschool]

I agree with LSUTiger32 that you should wait a few months after discharge to take on a car loan. The rates you will get now will be much higher than what you will get after you have been discharged a bit. Of course you could take a loan at a super high rate now and then refinance in a year or two but that still will mean extra money leaving your pocket until you get the car refinanced.

[IBroke]

I'm going to wait 'til my discharge reaches its first birthday.

My scores are already going up and I do have the impression that many potential lenders have some sort of policy to not extend credit in the first year after a discharge - at least many of them who don't charge a double-digit interest-rate.

By then, my current car will be paid off (actually, in 4 weeks already) and we can finally get the second car we desperately need.

[nomoneynomore]

I know it's no fun, but I agree w/ other posters. It would be much better in every way to pay cash for an old vehicle, even if it only lasts for 6 months. There are sooo many people desperate to sell vehicles on Craig's List it shouldn't be too hard to find something. It most likely won't be what you want, but will get you by.

[LSUTiger32]

Exactly like nomoney said.....it's not forever. I am not saying I will never drive a new car again. I am just saying I will never drive a new car with a car note again. I will buy stop gap cars until I save up what I need to pay cash for the car I want. It may be 5 or 6 years before I do it but I may even upgrade once along the way. There is no way I will EVER put myself in the predicament I was in. Besides my mortgage I will never owe anyone a dime.