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