Two years after bankruptcy, Jim gets 3.25% 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 a 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 A 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, I talked to three people like that just today, when they could get out of trouble and back to good credit far more easily.  Take it from Jim.