Jim gets 3.25% after bankruptcy car loan
Just got an email from Jim, who filed Chapter 7 bankruptcy with me in 2015. His case was approved and discharged in May 2015. In August 2017, he got an after bankruptcy car loan at 3.25%.
I tell people to try to get three years after the bankruptcy, to get the best rate on a car loan, but even two years—well, two years and two months—Jim was able to get a really good rate.
Jim got that really good rate from his credit union. It was State Department Federal Credit Union. That’s something else I tell people. Sometimes the factory is having trouble selling their cars; then you want to get a loan from the dealer. Otherwise a credit union is the best place to get a car loan.
Now Jim is Getting Ready to Buy An After Bankruptcy House
Jim had seen that it’s possible to get approved on a mortgage. insured by Fannie Mae, just two years after BK. He wanted to know if I had heard of that.
Yep, lots of people get approved for mortgages two years or so after filing Chapter 7 bankruptcy.
The best way to have good credit is to have good credit. But once you get into trouble (Jim has a medical emergency that had wrecked his credit) filing bankruptcy is nearly always the fastest way back.
People struggle with damaged credit for years. People think they are “protecting their credit” and they are actually protecting their bad credit. I talked to three people like that just today, when they could get out of trouble and back to good credit quickly and easily.
Take it from Jim.