loans after discharge

[ndbigler]

Now this might seem like a stupid question to a lot of you... but here's the situation. We have an old '73 Ford truck. it seats 3 people. We're having a baby in mid November. So, obviously we're gonna need something that seats 4 people now. We're literally living from paycheck to paycheck with no extras. We have no savings. We filed bankruptcy in May, and we were just discharged a few days ago. Does anyone know of ANY kind of banks that would help us get a loan? I mean, would ANYONE approve us for a loan so short out of discharge? What are our chances here? We need something really bad, and with nothing to put down, I don't think anyone could help us. What do you think? I am stupid for looking for a car/loan so quick out of discharge?

[butterflyness]

Well i dont know about you, but im getting tons of offers from places around me apparently willing to help. All of them say bankruptcy approved, and it dosent seem to matter if ur discharged or not. I have no idea how legit they are, but i guess it dosent hurt to just call and see what ur options are. I suppose you can go to yahoo and search bankruptcy loans. U fill out some info and if approved or whatever, ur contacted within a couple of days or hrs. Im sure u could prolly find someone that's willing to get u what u need. But im also positive it'll take some work as well.

[ndbigler]

Thanks. To be honest, I hadn't even thought about that. Here I am stressing out, with no luck, but its worth I shot I suppose.

[Lightning]

If you're living paycheck to paycheck, how will you make a car payment?

Unless you're buying a car with cash, you're going to have to answer that question for any lender that asks.

Yes, you'll be able to get financing somewhere. You may pay an interest rate of up to 21%. That means you'll have to buy a very used car and pay a lot a month for it. Where will this money come from?

[ndbigler]

Guess we'd just have to make it work. When I said we're living paycheck to paycheck, I didn't think I'd have to explain myself. But since you asked, we do have a few hundred extra dollars left from the checks, but since we moved 3 states away from where we used to live, and we're still getting caught up on expenses, we don't have any down payment, or anything saved. After everything's caught up, we'll have money for a monthly payment. Thanks for making me feel so good Lightening. You really just hit the spot.

[discharged]

I checked out a couple of those "we'll finance anyone" dealership ads...they will finance anyone, but as Lightning said, you'll pay an interest rate probably from 19% to whatever your state/location's max is, sometimes 25% or 26%...I sense some sarcasm in your post, but unfortunately, this is the way it is immediately after bankruptcy...someone will finance you, but you've got to think, if paying $300 a month for 2-4 years on a $3000 car, are you going to end up in financial trouble again trying to pay for and repair this vehicle?

[Pinktiger]

Here's a suggestion:

Instead of financing a car, why don't you start putting as much as you can aside for one, and pay cash? It doesn't have to be new and it doesn't have to be fancy, but I'll bet for a couple of thousand you can find something safe and usable. I, for one, have faith that you will find just the thing! So good luck and start putting away as much as you can toward that vehicle.
Lightening doesn't know everything, just how to be critical.
Another thing: you might try to raise the money you need by selling stuff or by getting a part time job for a few weeks.

[StaciMM]

ND-I don't think any harm was intended. Lightning makes a very good point, and he was responding based on the information you supplied in your original post:

We're literally living from paycheck to paycheck with no extras. We have no savings. We filed bankruptcy in May, and we were just discharged a few days ago. Does anyone know of ANY kind of banks that would help us get a loan?

If & when you find a vehicle to finance, you'll pay more for it than someone w/ AAA credit. Factor in the insurance cost also-will be more to insure a financed vehicle.

When you moved-did you stay w/ the same employer? If so, this will help. Generally, if your credit is subprime, lenders like to see job stability. (Personally, we tried to apply for a redemption loan as we're upside down, but were turned down as I've been on my job for 2 months now and DH started a new full time job in May.)

[ndbigler]

Instead of financing a car, why don't you start putting as much as you can aside for one, and pay cash? It doesn't have to be new and it doesn't have to be fancy, but I'll bet for a couple of thousand you can find something safe and usable. I, for one, have faith that you will find just the thing! So good luck and start putting away as much as you can toward that vehicle.
Lightening doesn't know everything, just how to be critical.
Another thing: you might try to raise the money you need by selling stuff or by getting a part time job for a few weeks.

Well, its a good idea, but with a baby coming in November, I'm not so sure we'll come up with enough for even a crappy car. I'm open to the idea and if thats what it comes down to, I guess we'll never go anywhere together as a family. At least till next year sometime. Probably later than sooner. We don't have anything to sell. Except that truck and probably this computer. Everything we have is secondhand, and its what we need. IE beds, couch, table, etc. A part time job is a good idea, I'd just have to find one that works with my husbands 2-2-3 scheduling. And that would be tough. Thanks for the tips.

[ndbigler]

ND-I don't think any harm was intended. Lightning makes a very good point, and he was responding based on the information you supplied in your original post:



If & when you find a vehicle to finance, you'll pay more for it than someone w/ AAA credit. Factor in the insurance cost also-will be more to insure a financed vehicle.

When you moved-did you stay w/ the same employer? If so, this will help. Generally, if your credit is subprime, lenders like to see job stability. (Personally, we tried to apply for a redemption loan as we're upside down, but were turned down as I've been on my job for 2 months now and DH started a new full time job in May.)

I'm sure he didn't mean anything by it, but I'm emotionally fragile right now, so I didn't take it too kindly. Sorry, Lightening. Anyway, yes we did stay with the same employer. That's probably the ONLY thing we've got going for us.

[StaciMM]

One last thought for you Natalie... Before you put in applications, check your credit reports and start the process to try to get it corrected. (Might as well give yourselves the best chances.)

I've read that roadloans.com is a reputable company, known to work with post-BKers. Haven't dealt with them myself though.

[ndbigler]

One last thought for you Natalie... Before you put in applications, check your credit reports and start the process to try to get it corrected. (Might as well give yourselves the best chances.)

I've read that roadloans.com is a reputable company, known to work with post-BKers. Haven't dealt with them myself though.

Thanks Staci. I went looking around at previous posts and I found a response from TODD. He had listed several websites for car loans that will help. I believe roadloans.com was one he mentioned. I have yet to check it out. Thanks. By the way, what exactly do you mean by trying to get my credit corrected? I guess I'm a tad naive on the whole thing, but I thought that after bankruptcy, it all stays on your credit and the only thing you can do to raise your credit is make your other monthly payments on time. Is there something else? And whats a website that will let me check out all 3 reports? Thanks again.

[StaciMM]

The accounts should not show any balances due. (You no longer owe anything.) Your score is impacted by the amount of debt you have outstanding, so having $X due on delinquent accounts will hurt your progress.. Creditors aren't always too quick to update info when they can no longer get anything out of it...

The free site for getting your reports (once per year from each bureau) is www.annualcreditreport.com.