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  1. #1

    Default Getting Out of a Bad Interest Rate

    My question involves bankruptcy in the state of: Illinois

    Is there anyway to negotiate yourself out of a bad interest rate. After my bankruptcy two years ago, I hated the idea of getting in debt again and getting any more credit so I stayed away from it. Recently when my leased vehicle was up and had to be turned back in, when I went to return it, I realized that I would not have a car unless I got another lease. GM refused to help me but the dealership said they could get Crapital One to finance me. Boy what a joke that was. Now I have another car with a 23 percent interest rate over 72 months at 622.00 a month and the vehicle is a 2006 GM with 8000 miles on it. The interest is more than the car, but what could I do?

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Crapital One Finance Company

    Quote Quoting 6ftsoccermom
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    My question involves bankruptcy in the state of: Illinois

    Is there anyway to negotiate yourself out of a bad interest rate. After my bankruptcy two years ago, I hated the idea of getting in debt again and getting any more credit so I stayed away from it. Recently when my leased vehicle was up and had to be turned back in, when I went to return it, I realized that I would not have a car unless I got another lease. GM refused to help me but the dealership said they could get Crapital One to finance me. Boy what a joke that was. Now I have another car with a 23 percent interest rate over 72 months at 622.00 a month and the vehicle is a 2006 GM with 8000 miles on it. The interest is more than the car, but what could I do?
    The reason for the high interest rate is YOUR RISK FACTOR. After a BK your FICO scores are very low. Some lenders will issue you new money as Capital One did.

    They had to discolse to you upfront the interest rate and the payment amount. You did accept it.

    You paid them the RISK FACTOR that they required to make you this loan. All you can do is let them repo the car and then you are back to not having a car and a deficiency judgment attached to you. You will have to pay the money at that rate even if you dont own the car.

    You should just accept what you signed and build your credit this way. Next car loan you will be able to get a rate under 10%. Consider this loan a re building loan to secure your future. To go into default you will never recover from this cycle.

  3. #3
    Join Date
    Nov 2007
    Posts
    127

    Default Re: Crapital One Finance Company

    isnt the real reason for bad or high interest rates after a bk, just to punish someone further?? after all, sure your score is lower, but after a bk, they know you cant file again for 8 years, so why the hard time getting credit, especially if you have a job or house. you should really be a LOW risk. and it should be easy to get credit...

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Crapital One Finance Company

    Quote Quoting junker
    View Post
    isnt the real reason for bad or high interest rates after a bk, just to punish someone further?? after all, sure your score is lower, but after a bk, they know you cant file again for 8 years, so why the hard time getting credit, especially if you have a job or house. you should really be a LOW risk. and it should be easy to get credit...
    NO , not really. Lenders see a low score as "WHAT DO I HAVE TO LOSE" if I do not make my payments. People with high FICO scores want to protect their scores.

    The "second chance" loans have the risk factor built in and for good reason as this post suggests. A re default is very possible.

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