I did not do a reaffirmation agreement on the loan but kept my car. Can I refinance at a reasonable rate to clear the negative loan "as paid" and start a new, positive loan reporting?
I have never heard of someone refinancing a car loan after bankruptcy just to improve their credit. First of all, you don't have the car title, so I'm not sure how you would go about refinancing. Second, most people have cars that have depreciated, so they don't have the ability to refinance when they owe more than the car is worth. There are likely better ways to improve your credit rating over the coming two years. It is also likely that the bankruptcy filing and discharge have improved your credit rating more than you might think.
If you want to improve your credit score, work with a qualified credit score consultant to clean up your report and add the appropriate new accounts that will give you the most bang for your buck. We have a couple of people here in Cleveland that do this kind of work for our clients and I would imagine there are good consultants in your area as well.
Talk to your attorney about this. It may be possible for the finance company to repossess your car even though you are current with the payments because you did not sign a reaffirmation agreement. I believe that you would have a difficult time refinancing the vehicle at a decent interest rate shortly after a bankruptcy unless there is a lot of equity in the car.
When a car loan is not reaffirmed, no information about it will be reported after a bankruptcy. Not good information, not bad information. If you want to improve your credit score without hiring a professional, you will need to study how the credit reporting system works. I published a 10 part series on this topic and you are welcome to go through all my legal guides to find this seriew. Hope this perspective helps!
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