This question is for my close friend... If she went into a dealership, looking to finance a used 1998 or later car, her credit union declined her due to prior BK, (4 yrs old since discharge) Rebuilt credit with 3 credit cards, and refinanced home loan, perfect history in 4 years, scores around 650. Same job for 4 years. What kind of interest rate should she expect? Anyone had a similar situatiopn with similar credit? Jamee
I am out of bk just 3 yrs and she shouldn't have a problem getting a car loan at around 9%. the credit union should have given her a loan for the car --they typically are easier to deal with. Could it be her debt to income ratio? She should optimally be at 28% of income and 33% for all other credit combined.
The credit union told her that they do not give loans to anyone until the BK is at least 7 yrs old. Maybe her credit union is more strict that other credit unions, they wont even give anyone an overdraft line of credit for 100.00 if you have a prior BK. That sucks because I am also just two yrs out of BK, we bank at the same credit union, (its thru our employer) and I want to buy another car in a couple yrs too, so I was waiting to find out what happens with her before I tried. She actually just went to the dealership, came home with a new car at 16%. She was kinda disappointed, but her car was almost not driveable anymore, so she did it. Hmmm. Jamee
That is the worst CU I have ever heard of. I went bankrupt in 1997. I bought a used Lincoln Continental the following year at close to 9% with a CU loan. I am still shopping for a new Toyota. I will be expecting 6% or less on my new car.
I have a bankruptcy that is 4 years old and Washington Mutual Bank gave me a $100 overdraft protection on my checking account to start with. Two years later my overdraft protection is $1,000 and the weird thing about it is that I have never used the overdraft protection. This just tells you that anything is possible with a prior bk on your credit report. You just have to shop around and never give up. Good luck.
