| There are few things as bad as a bankruptcy or bad | | | | Equifax, Trans Union, or Experian, for clarification. |
| credit when it comes to getting a car loan. However, | | | | Bureaus will contact the creditor and if there is no |
| this does not mean you can not get a new or used | | | | proof of your debt within 30 days, the disputed |
| car loan it just may require a little more work. | | | | information will be removed. A corrected copy of |
| If your going through a bankruptcy during the initial | | | | your report will be issued by the credit bureau after |
| process, most finance companies probably will not | | | | this. |
| work with you, but after it is finalized, your financial | | | | * You can add a small entry to valid derogatory |
| doors will again be open to help you take on debt | | | | entries explaining a sudden illness, car accident, etc. |
| legally and reestablish yourself after the crash. | | | | Creditors usually take this information into account, |
| When it comes to bad credit, things are little easier | | | | giving you extended credit, or better rates and |
| because bad credit is not a synonym of No-Credit. | | | | terms that otherwise they normally would not. |
| Where some companies will refuse to approve your | | | | * Do research online before signing the dotted line, |
| application for car loan, others will approve you and | | | | because there are numerous online finance companies |
| even offer a good or reasonable rate and payment | | | | offering good terms and payments, don't just settle. |
| terms. | | | | Try using the different search engines using |
| Regardless of your credit history, check the following | | | | keywords such as "car loan", "bad credit" and so on. |
| tips to find some of the best car loan and terms: | | | | You will be surprised how easy it is to get approved |
| * Get a copy of your credit report before doing | | | | online and get a car loan for automobiles not older |
| anything else, and review that it does not contain | | | | than 5 to 7 years and priced up to $15,000. |
| erroneous and derogatory information as sometimes | | | | * Go to a Buy Here, Pay Here. This is a useful tip for |
| may occur. It is estimated that 90% of credit | | | | people wanting to buy older cars or whose credit will |
| reports contain errors or incorrect information. | | | | not let them buy at a normal dealership. Buy Here |
| What should you look for? Whatever is wrong, for | | | | Pay Here dealers "self-finance" the car which means |
| instance your contact information, loan summary or | | | | they hold the loan not a bank. The payment terms |
| derogatory debt information that is older than 7 | | | | are usually rough including things like weekly |
| years and should be removed. | | | | payments. One of the drawbacks is that most Buy |
| Derogatory credit and debt reporting must only stay | | | | Here Pay Here's do not report to the credit bureau |
| on your credit report for 7 years for bad credit, and | | | | and any deal with them will not improve your credit |
| up to 10 years if a bankruptcy occurs. Although this | | | | score. Even though interest rates are higher than the |
| period of time is a legal term, some creditors and | | | | average car loan purchased from a financial institution |
| collection companies often abuse the law, | | | | it's an alternative for people who want to borrow |
| reestablishing bad debt with different loan numbers | | | | little money to buy a car, rather than walking or riding |
| and other tricks. | | | | the bus |
| This practice is illegal and a violation of the Fair Debt | | | | After getting approved for a car loan, do not miss a |
| Reporting Act. Wherever you find a fraudulent report | | | | payment or make late payments. Remember that |
| contact the company and if they still won't remove | | | | you're re-building your credit history and correcting |
| the offense you may want to contact a credit | | | | the mistakes of the past. Paying on time every time |
| attorney. | | | | improves your credit after 1 or 2 years, allowing you |
| Any item that does not correspond to your credit | | | | to apply for other loans and obtain better rates than |
| history should be reported to the credit bureaus, | | | | you did before. |