# Financing Question



## kev (Oct 10, 2007)

My wife and I just looked at a whole bunch of different trailers over the weekend and we found the perfect one. It's the Outback 21RSLE. We have a family of 4, so this one would fit like a glove. It would be our first trailer. My only issue is financing. I don't mind talking about this, but you may. We recently filed bankruptcy and are wondering if any one else out there was in the same predicament? I want to know if it would be possible to finance a trailer so soon after filing? I read that it's a good idea to purchase a house or a car, etc; in order to reastablish your credit, because it's considered good debt. I figured a trailer would fall into that catigory. Any insights into this matter would be much appreciated. We would like to start RVing next season. Thanks..


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## bradnbecca (Feb 12, 2007)

kev said:


> My wife and I just looked at a whole bunch of different trailers over the weekend and we found the perfect one. It's the Outback 21RSLE. We have a family of 4, so this one would fit like a glove. It would be our first trailer. My only issue is financing. I don't mind talking about this, but you may. We recently filed bankruptcy and are wondering if any one else out there was in the same predicament? I want to know if it would be possible to finance a trailer so soon after filing? I read that it's a good idea to purchase a house or a car, etc; in order to reastablish your credit, because it's considered good debt. I figured a trailer would fall into that catigory. Any insights into this matter would be much appreciated. We would like to start RVing next season. Thanks..


you may find that you will have trouble financing through the traditional lenders that dealers use. Your best bet would probably be to try to obtain financing through a local credit union- they are usually more forgiving and willing to look at your current financial situation. You will probably also be able to get a better interest rate there.

You may want to look here for some advice and possible lenders:

www.creditboards.com

There are probably some people there that can steer you towards a lender that will work with you and give you a reasonable interest rate.


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## campmg (Dec 24, 2005)

First off, welcome to Outbackers. The 21rsle is a real nice camper. As for financing, only by trying will you know. Since it's secured by an asset, you may be able to find financing but may have to come up with a reasonable down payment of maybe 10 - 20%. Many banks are willing to lend post bk since you're starting with a clean slate as long as you have gainful employment. Some dealers may try to place your loan since they want to sell you that shiny new camper. Good luck and let us know what you come up with.


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## sia (Jul 7, 2007)

Chapter 7 or 13? I don't know if RV dealer looks over you whole credit report or just get your credit score. . If you credit # is over a 640 (I think) then you can finace a TT. Find out what your credit score is and you will know if you can finace a TT. Yes making payment on anything will build your credit back up. Now they even have "special banks" for that. Everytime you make out a check, they report is as a payment made. Same as the bad credit no credit car dealers. They also report to the 3 major credit bureaus.

P.S. just be careful of those free credit reports... they check your credit every months and everytime your credit is check they take points away. I never understood that.

good luck, you will love the outback. It is a beautiful camper.


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## sia (Jul 7, 2007)

Chapter 7 or 13? I don't know if RV dealer looks over you whole credit report or just get your credit score. . If you credit # is over a 640 (I think) then you can finace a TT. Find out what your credit score is and you will know if you can finace a TT. Yes making payment on anything will build your credit back up. Now they even have "special banks" for that. Everytime you make out a check, they report is as a payment made. Same as the bad credit no credit car dealers. They also report to the 3 major credit bureaus.

P.S. just be careful of those free credit reports... they check your credit every months and everytime your credit is check they take points away. I never understood that.

good luck, you will love the outback. It is a beautiful camper.


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## Sayonara (Jul 23, 2007)

First off - Welcome to Outbackers and good luck in your search for a TT. You will find that this site is a great place for information and friends.

Now about your question. I can not give any advise as we have not been in a bankrupcy situation but a few things come to mind though if it were me. im not saying you have not already thought this through, these are just my initial thoughts with very limited knowledge of your situation...

1. Can you afford to buy the trailer now? 
2. Should the money be spent in other ways...ie: savings, past debt, home, retirement, investments, etc. 
3. I would not use trying to establish your credit again as an excuse to get yourself back in debt, especially with a "luxury item" like a trailer. Be smart with your money.
4. Take time to secure your finances, then move forward with a purchase.
5. If you do it, PAY IT OFF QUICKLY !!! We use a cash or 2-3 yr rule if we finance something. If we cant pay it off in 2-3 years we dont buy it. I understand that wont apply to everyone but maybe setting a plan like that would help. Having a dealer say it can be financed 10-15 years to make it affordable could get you in trouble if its not kept long term. Especially with your recent situation.

Im sure that showing you can hold a loan and make the payments on time will help restablish your credit but make a smart decision.
I state my comments with no disrespect at all. You had asked and i thought id give my opinion. 
Good luck to you!! Enjoy the site!


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## Nathan (Jan 2, 2007)

I liked Sayonara's comments on the loan. I've found a lot of "questionable" trailer loans. By questionable I mean: 0 down, 10 or 15 years; Prepayment penalties; non-simple interest; etc. Given your situation, it may be even worse. I'd arrange finacing at a bank or credit union and then go trailer shopping. Also, remember, these thing depreciate quickly, so don't get upside down if you are new to camping. I bet there are a lot of campers who trade within a couple years to upgrade or move in a different direction. This will be made difficult if you are upside down on the loan.

Most importantly though: Welcome to Outbackers!!!


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## battalionchief3 (Jun 27, 2006)

I just planted one of these, add water and enjoy.


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## Y-Guy (Jan 30, 2004)

I would suggest getting pre-approved by a Credit Union or other financing group before you negotiate. Then see if the dealers financing groups can beat your deal. Trailers, much like cars, are not an investment - they depreciate the minute you take it off the lot. Good luck and happy camping!


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## skippershe (May 22, 2006)

Hi kev
















to Outbackers! 

Good luck with the financing and please keep us posted,


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## Lady Di (Oct 28, 2005)

Welcome to Outbackers.









You might want to look at used campers. The largestg depreciation is already over with.


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## OregonCampin (Mar 9, 2007)

The other thing I would suggest is find a good dealer.

The dealer we used was telling us a story about a couple that wanted a new Outback really bad, but did not have the credit (due to bankruptcy) to pull it off. He went out of his way to find a used trailer (SOB) that would work for them plus helped them secure financing through a local credit union. His motto was that everyone has problems - he was willing to go the extra mile to help them out.

Why did he tell us this story? I personally filed Chapter 13 almost 7 years ago and the best interest rated banks would not finance me. We financed the OB with a little higher interest rate (to help re-build my credit) for 5 months and then paid it off. Having been where you are I would suggest finding something used for a few years - finance as little as possible and then after making payments for a couple of years try again with the new(er) trailer. It takes time to re-build, but the last thing you want to do is get yourself back into a position where you might need to file bankruptcy again. To me that was the most humiliating thing I have ever had to do and I swore that I would do everything in my power to never let it happen again. 7 years later I have only one thing that I finance - that would be my house. I have financed a couple things for 6 to 12 months for credit building and then paid it off. I also have a credit card that I use to pay my monthly bills that gets paid off every month.

Just my 2 cents


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## Sayonara (Jul 23, 2007)

OREGONCAMPIN said:


> We financed the OB with a little higher interest rate (to help re-build my credit) for 5 months and then paid it off. Having been where you are I would suggest finding something used for a few years - finance as little as possible and then after making payments for a couple of years try again with the new(er) trailer. It takes time to re-build, but the last thing you want to do is get yourself back into a position where you might need to file bankruptcy again. To me that was the most humiliating thing I have ever had to do and I swore that I would do everything in my power to never let it happen again. 7 years later I have only one thing that I finance - that would be my house. I have financed a couple things for 6 to 12 months for credit building and then paid it off. I also have a credit card that I use to pay my monthly bills that gets paid off every month.
> 
> Just my 2 cents


Very good advice!!


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## Carey (Mar 6, 2012)

Back in '93 I had to claim chap 7 for a medical reason..

I quickly rebuilt my credit with those high rate C Cards and an auto loan that was pretty high rate. BUT, the following year I was able to buy a house, with a decent rate..

My credit score was about 450 after the chap 7, within 2 years was 650 and now is 810.. It took some work and some money spent, but If I could do it, anyone can.. But it is nothing I ever want to do again.

I agree with others. Lenders are only going to loan on its actual loan value of the item you want. You will need to come up with the balance on your own to buy this. So whatever you buy, do your homework diligently! Youll need 20% most of the time, but if you can find a good deal, may only need to come up with 5% or less, plus taxes.

And to let you know, the day after my medical problem, I bought health insurance for my whole family, and still do to this day.. It gets more expensive every year, but after learning the hard way is worth it! I was 27 and thought I was indestructable.. I found out I wasnt, and got a 75000 bill in the mail for it..

Like the lawyer said, in 7 years, you will not have this bill paid off, so you might as well write it off now and start over. Looking back, I'm glad I went his way.

Good Luck on your choices.. The choices you make right now will decide your future. Its really important right now to make the smartest choice for your dollars whatever those may be.

Our Outback is financed thru Bank of The West.. I have a great rate, but if i remember right, they have a high risk program.. You might look em up.

Carey


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## Sluggo54 (Jun 15, 2005)

"2. Should the money be spent in other ways...ie: savings, past debt, home, retirement, investments, etc."

After a bankruptcy, NEVER go back and pay on a debt that has been discharged. That has opened up an incredible can of worms for some folks. Doing this has been interpreted as re-affirming not just one debt - but ALL of them.

Sluggo


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## Sayonara (Jul 23, 2007)

Sluggo54 said:


> "2. Should the money be spent in other ways...ie: savings, past debt, home, retirement, investments, etc."
> 
> After a bankruptcy, NEVER go back and pay on a debt that has been discharged. That has opened up an incredible can of worms for some folks. Doing this has been interpreted as re-affirming not just one debt - but ALL of them.
> 
> Sluggo


I made my statement thinking your point would have been obvious (why pay back a dischargesd debt) but maybe i should have been more clear. In some cases there may be $$ that was borrowed from friends, family, HELOC, retirement, etc to help. that is what i meant by "past debt".

We were on the "lending to a friend" end of somebody who fell on hard times financially due to an illness and having to stop working. They made it top priority to pay us back quickly. That was much appreciated....

Good luck


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## fourwalls (Sep 21, 2007)

You might check out direct deposit of your pay check and then bi weekly payments at a credit union. Ours gives a better interest rate with that approach. and it gets it payed off a little quicker. They are a little freer with the loan when they get their money before you. The best part is it does not cost to ask. Cover a lot of options and then pick the best for you. Our credit union has credit councilors I don't know if all do or not. Good luck and happy camping.


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## Scoutr2 (Aug 21, 2006)

sia said:


> P.S. just be careful of those free credit reports... they check your credit every months and everytime your credit is check they take points away. I never understood that.


The reason that points get deducted from your credit score every time a credit check is performed is because a lending institution has no way of knowing why a credit check was requested. Every time you open a credit card account, a credit check is run on you. Every time a loan application is filed, a credit check is run. People who keep moving debt from one credit card to another usually do so because they are in financial trouble. Same goes for loans - people shift debt when they get between a rock and a hard place. They may have been denied credit, so the loan never happened and it didn't hit your debt limit - which is probably inflated if you are in trouble. It allows them to spread the payments out longer and make them smaller. These are all warning signs - but those types of details are not on your credit report. So the only way to flag these activities is to deduct a few points every time you even inquire about credit.

It doesn't seem fair to me, either, but just wait about five years and you'll see why. There will be a lot of $500,000 homes on the market for only the balance of the loan. Banks have been EXTREMELY over-extending themselves for the last several years, also. It's going to get ugly! You, like me, have probably been wondering where all the money is coming from to build all these high-end homes. Well, the money isn't there! And it will all come crashing down some time in the near future.

I'm just glad that I only have EIGHT payments left on our home!!!!! There will be a BIG celebration in Bartonville next summer!

Mike


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## bradnbecca (Feb 12, 2007)

Scoutr2 said:


> P.S. just be careful of those free credit reports... they check your credit every months and everytime your credit is check they take points away. I never understood that.


The reason that points get deducted from your credit score every time a credit check is performed is because a lending institution has no way of knowing why a credit check was requested. Every time you open a credit card account, a credit check is run on you. Every time a loan application is filed, a credit check is run. People who keep moving debt from one credit card to another usually do so because they are in financial trouble. Same goes for loans - people shift debt when they get between a rock and a hard place. They may have been denied credit, so the loan never happened and it didn't hit your debt limit - which is probably inflated if you are in trouble. It allows them to spread the payments out longer and make them smaller. These are all warning signs - but those types of details are not on your credit report. So the only way to flag these activities is to deduct a few points every time you even inquire about credit.

Mike
[/quote]

There is no effect on your credit score whatsoever from checking your own reports. These are called "soft inquiries" and don't count towards your score.

Hard inquiries result from attempts to obtain credit and will lower your score temporarily, normally by one or two points.

I belong to a credit monitoring service and monitor my credit reports several times a month. I have had problems with identity theft before and I check to make sure that nothing is there that shouldn't be there. It has no negative effect on my credit scores whatsoever.

There is a great deal of information relating to credit scoring on www.myfico.com.


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## kev (Oct 10, 2007)

Thanks guys, you've all been very helpful. Great site I've fallen upon. Thanks again. Maybe in the near future I'll meet some of you on one of those Outback outings!!


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