refinancing after discharge

[adargie]

Quick question, wondering if anyone was able to get a good interest rate after discharge, we are waiting to refi till next fall when our chap 13 is done(yay) hoping the interest rates remain low. Will it even be possible to get that kind of rate with what our credit will be, our mortgage is not part of our filing, we are up to date on payments. Or should we wait a certain amount of time?

[justbroke]

You should check your credit scores shortly after discharge. I'm talking about checking your FICO score, through MyFICO, and not through the other sources (which may not be true FICO scores). This will give you an idea. But, there is another score known as the Auto Credit Score which is typically higher than your FICO score. This will determine the tier in which you fit. The lower the tier (e.g. Tier 1+), the better rates you will achieve.

If you have good post-petition credit behavior with no issues at all, then your score should be above 620 and you should be able to get "good" rates. If your score is in the high 600s, then you should be able to get Tier 1 rates.

This is for illustrative purposes only. These are the Toyota Financial Services tiers and sample rates. (Note, that rates are much lower these days, so a Tier 1 person should be able to find financing for 1.9% or better.) ALWAYS shop your rates and apply with 3 lenders when looking at a vehicle!

TIER 1+ FICO 720+ (UP TO 60 MOS) 5.90
TIER 1 FICO 719-690 (UP TO 60 MOS) 5.95
TIER 2 FICO 689-670 (UP TO 60 MOS) 7.35
TIER 3 FICO 669-650 (UP TO 60 MOS) 9.30
TIER 4 FICO 649-630 (UP TO 60 MOS) 13.50
TIER 5 FICO 629-610 (UP TO 60 MOS) 15.75
TIER 6 FICO 609-580 (UP TO 60 MOS) 17.75
TIER 7 FICO 579-520 (UP TO 60 MOS) 19.10

[adargie]

Awesome info thank you!!

[frogger]

JB - I'm now in Tier 3 and just financed a used car @ 2.5%.