Bankruptcy & credit tiers (highish score) -- confusion?

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Hi! I’m a bit confused on how bankruptcy effects credit tiers when obtaining a lease, especially when the score isn’t too low? Does anyone have any real-world experience? Researching here shows there’s level 1-7.

I’m 4 months post-discharge on my Ch. 7 bankruptcy and my score is right at 690-700 now (started at ~540 or so.) I have $0 debt listed and $2,300 in available credit (3 new unsecured credit cards.) I also make approx. $98,000/year. The only ‘bad’ thing on it is the BK.

All of these credit tiers are listed by score though, and while my score is pretty high, I don’t expect that. But would it qualify for 2-3? 4-5? Does it depend on the manufactur (i.e., Hyundai lease vs Toyota?)

Thanks for any help!

If you’re just asking what credit tier you would qualify for, then yes, that is very much manufacturer and/or bank dependent.


It’s a very complex question.

When applying for an auto loan / lease the banks do a much more in-depth review of your financials beyond just your credit score. Certain manufacturers banks are stricter than others and the tier you will get approved on and if you get approved will vary between manufacturer.

Another important question is what are you using to measure your credit score? Credit monitoring apps like Credit Karma and others use a different scoring model than what the dealerships use and a lot of times credit is realistically lower then it appears.

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Rarely, Toyota does bankruptcy post-discharge.
Nor does USBank or Ally.

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Ah, you’re right, these scores were based on VantageGuard, not FICO. My FICO is actually a good amount lower (closer to 600), thank you for pointing that out! Maybe I’ll wait a bit. Do you know which FICO version a lot of dealerships use? 8? One of the special auto ones? I’m mainly interested in Hyundai if that helps.

Thanks, any idea about Hyundai? That’s who I’m mostly interested in.

I’m not sure to be honest.

I think you’re going to be better off with Honda over Hyundai as far as the approval goes.

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@AA-NJ provides pricing for all credit tiers.

You should always know your next-best alternative, so what APR would you qualify for for new or used car loans?

I’m pre-approved at 7-10% depending on vehicle from Carvana and Capital One Auto.

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The only score that matters is the one that’s used for decisioning on a specific application for credit. Vantage is used for almost nothing except to entertain consumers with free, virtually-useless skores.

Also, as already mentioned, decisioning is more complex than “score > x = approved.” The presence of a recent BK by itself may be a disqualifying factor, regardless of score.

Income, previous lease history, other indebtedness, and other factors are also in play.

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What about from a credit union?

I actually haven’t checked. I’ve been with mine since 2011 and my previous two auto loans were through them, without any issues on payments. I will have to…

If You want I can check with my Hyundai and Honda dealers and provide a quote. Are You interested in a specific car?

Do you have any auto repossession in your history? That could play a part.

My .02 - focus on rebuilding that 600 score. Look to buy or finance a modest, used vehicle. A lease will make the Debt to income go up.

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Here’s my writeup on how this works, specifically for Hyundai.

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