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Gumby79

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  1. Thanks! I'm off to visit some other threads on this forum to see the best cards to pre-select for! I'm thinking Cap1 possibly offers a soft pull pre-selector and I can't remember the others off hand.
  2. Thanks for the insight! I think, sometimes, in an effort to have an "anti-bankruptcy level FICO score", I've been 100% focused on having her do everything just to raise the score as high as possible. Re-reading this thread makes me realize that A) she's lucky to have a fresh start and now substantial cash flow and B ) not having any monthly obligations debt wise is a better avenue than having a little debt just to have the satisfaction of a higher score.
  3. I'm not under the illusion that she drove a car for free for 9 months if we sell it back to Carvana. I'm saying that their buy back offer is just a bit higher than what is currently owed on the car after those 9 months. There have been no out of pocket repair costs as it does have an extended warranty which, thinking about it now, can probably be cancelled further reducing the loan balance. The car she purchased was fairly basic transportation with higher miles on it. If she was still in the same situation, should would drive it until it's paid off and not really complain. However, as I mentioned, we've both been super fortunate in a number of areas so she can upgrade to a newer used car and it's probable, if we wanted, could just pay cash for that newer used car. I understand the spirit of the comments as a warning not to bite off more than she can chew, but that's not what is happening here. I'm just curious if there is a number of months you should finance a car for to boost your score if you have the ability to pay cash? For example, I read on here a while back that if you pay off an auto loan in less than 6 months it doesn't really help your score. I'm looking for a guideline on the length of time that does boost your score (significantly) so that we could potentially finance it exactly that long and then pay off the remaining the day after that.
  4. Hello, all. My S/0 is 9 months post Ch7 Bk discharge and earlier this evening, on a whim, decided to do the soft pull pre-qualifier for a Discover card after reading about it on this site. She was prequalified for 2 unsecured cards and picked the standard card to apply for; she was approved with a $2K limit. Obviously, this is a big deal in her credit rebuilding journey as the cards she was able to obtain a short while after discharge was the First Milestone Visa (I know, I know....) and an Ollo Mastercard, both with a $300 limit each and terrible terms. She has PIF both of these cards every month that she's had them (5-6 months) and just used them for small fixed charges like iTunes subscriptions. While we aren't paying an interest by doing that, I do believe they both have some annual or membership fee coming up when they are a year old. With such low limits, they truly aren't good for much aside from rebuilding. Now that she has a decent limit with Discover (only plan to use it for things such as groceries and gas and PIF every month no matter what), is it a good idea to close the two crappy starter cards down or is there a benefit in keeping them open and not using them really just to keep her score going in the right direction? Her FICO scores are all in the mid-600s range. Thanks in advance for your help!
  5. Hello, all. I posed a question recently about my S/0 who will be 1 year post CH7 Discharge this June. Literally the day after her discharge, she was able to finance a car with Carvana, albeit at a high interest rate (18%). Her/our outlook/luck has changed dramatically for the better since then and we are looking to get her a newer car - a CPO Honda or Toyota that is 1-2 years old in the $25K price range. We've paid down the Carvana loan enough to where she'll break even by trading it in given their buy back offer and were thinking of putting down $10-$15K on the new CPO car which would have her finance $10-$15K only total (she financed almost $18K with Carvana). There is a possibility that we could just pay cash for the CPO car total but I would like to have her continue re-building her credit. So come June she'll have 12 months of on time auto payments, but if we do decide to take out a loan for the CPO car, how long should we finance it for to continue her re-build history? I'm not asking for how many months the contract should be, but rather how long we should make the payments monthly before paying it off? Is there a rule of how long you should have an auto loan to reach peak score building history as far as that goes? Just on a whim, I had her do the soft pull for a Discover Card and it gave her 2 preapprovals. She applied for the standard card and was approved for a $2K limit so she's happy with that as her two previous cards post-BK were crappy starter cards with $300 limits. Her scores from the FICO site are in the mid-600s. Thanks in advance!
  6. Thanks again, Marv. I think we'll give it a try and tell the dealership that if she doesn't qualify for the special rate then we'll just bring in a cashiers check for the loan difference from the credit union.
  7. Thanks, Marv! I've been lurking here for a while now reading up on the best route for her (and by extension, us) to take following her discharge. I won't go into all of the details but the situation behind her BK was complicated and we've been fortunate enough to encounter a ton of good luck professionally, personally, and financially after that situation. Some hard lessons were learned as we used to be the couple that leased $50-$60K cars every year rolling over all of the negative just because the monthly lease payments were relatively affordable given our combined income. Never again.... As for why trading after a year, well, the car she financed through Carvana was not one we really wanted but it was decent and it was the only place that approved her literally 1 day after discharge so it was a snap decision that we knew we could readdress later down the road. The 'break even' comment is the auction wholesale price of the car now being within a few hundred bucks of what she owes. Truth be told, combined, we could afford not to finance another car in that price range of $25-30K total but want to finance a small amount to continue the credit rebuilding process. The plan, if we finance $10-$15K is to pay $1000 per month to get it paid off within 1-1.5 years. I realize that paying such large payments means that if her credit union approves her for 8.9% or thereabouts vs Honda or Toyota approving her at 1-2%, it won't be thousands of dollars in interest that the original loan would be. It just would be "nice" to get the special APR given the equity she'll have.
  8. My S/O will be 1 year discharged from a CH7 BK that included a car lease through BMW Financial. Immediately after discharge, she was able to finance a car through Carvana (Bridgecrest Financial) albeit at a high rate (17.9%). She can break dead even trading that car in a slightly newer CPO car and is looking at 1-2 year old top trim Toyota Camrys and Honda Accords. She will have a very significant amount of cash to put down ($10-$15K depending on a few things) so she will only finance $10K - $15K total Out The Door. Her actual FICO scores are 625-640 depending on the bureau and aside form some student loans her only active credit since the discharge is the auto loan I mentioned with around a $14K balance (that will be paid off prior to her getting another car so no negative equity) and two starter cards with low limits but are PIF a few days before the due/reporting date each month. I know she can be approved with that much up front cash at a number of banks, but the Honda and Toyota CPO programs are currently running APR specials of 0.9% - 1.9% for up to 60 months for qualified buyers. FWIW, she plans to finance a total of $10-$15K for 36 or 48 months at the longest. Her income is around $40K but has no other significant debt/outgo. Is there a minimum threshold FICO score she'll need to get the low rate CPO financing or do they have a hard and fast rule that you can't get that APR only 1 year post CH7 discharge? Thanks for the help in advance!

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