(1) You’re wanting to apply for a bad credit auto loan. Besides your credit score, what are the key factors that a lender considers on your report?

(a) The types of credit cards you’ve opened and the number of inquiries.

(b) The amount of time you’ve had a credit history and the number of accounts you’ve opened.

(c) How many open charges you have and the amount of your debt load.

(d) Your payment history and how much you owe.

Answer: (d) Although the other aforementioned factors play a part in the decision-making process for a loan, your payment history and the amount you owe have a significant influence on your score as well as whether or not you’ll qualify for a loan.

(2) Which of the following items can be erased from a credit report?

(a) Tax liens

(b) Garnishments

(c) Inquiries

(d) All of the above

Answer: (d) All of the above. In addition, you can also remove foreclosures, bankruptcies, civil claims collections, late pays, repossessions, and charge-offs.

(3) Is it true that you can erase bad credit legally from your report by filing bankruptcy?

(a) Yes. But only if you file Chapter 13 Bankruptcy.

(b) Yes. You can erase bad credit fast by filing either Chapter 7 Banktruptcy or Chapter 13 bankruptcy.

(c) Yes. But first you must file a “Statement of Affirmation” before this can be done.

(d) No. Bankruptcy will not clear the debts from you file. In fact, the bankruptcy will be added to your Credit Report further indicating to a lender of your inability to pay. Therefore, it’s important to secure the services of a mediation company such as a Credit Repair service if you want to erase bad credit of any kind from your credit report.

(4) If someone wants to go through a Consumer Credit Counseling Service in order to improve their score, how long will it take for them to see an improvement with respect to their overall credit report?

(a) Consumer Credit Counseling Services can give you the assistance to pay down your debts in a matter of 60 to 90 days.

(b) A Consumer Credit Counseling Service can assist you in management of your debts so you can remove most items in 30 days and see an improvement in your score.

(c) Simply by signing up with a Consumer Credit Counseling Service will automatically boost your credit score.

(d) Often times, if it’s shown that you have gone through a Consumer Credit Counseling Service for help with debt management and credit counseling, this will reflect negatively on your score. It’s better to learn how to erase bad credit before taking this measure.

Answer: (d) Unfortunately, many lenders will look at the fact that you had to obtain the help of a Consumer Credit Counseling Service as a negative. This is also viewed as such on your credit report.

(5) What items below can’t be erased from a credit report?

(a) Incorrect personal information

(b) Medical bills.

(c) Student loans.

(d) All of the above.

Answer: (c) If you don’t pay off your student loan, it’s normally a difficult item to erase. This, specifically, applies to  government-backed student loans.  Only by going back to school or through a loss of  income can you lessen the burden of paying such a loan back. A private student loan can be forgiven if you file bankruptcy and have the bankruptcy removed from your report.

How’d you fare? There’s no easy solution to erasing bad credit nor can you erase bad credit for free. There’s always some kind of price you have to pay. However, if you’re diligent, you can improve your report and, as a result, your future financial security.

How long do negative items have to stay on your credit report before they can be removed?

Negative items such as late payments, non-pays, or charge-offs typically do not fall off your credit report for seven years. However, it is possible to remove these items before seven years’ time.

With regards to erasing bad credit, can credit repair companies even erase such negative items as bankruptcy?

Yes, even bankruptcies can be removed along with delinquencies and judgments.

Can you resolve a dispute with a creditor yourself and have a negative item removed from your report?

Yes. You can erase bad credit legally by contacting creditors yourself and having the negative information removed from your report. Better yet, if you do resolve a dispute with a creditor, you can have them contact the Credit Bureau and have an item erased.

With a credit repair company, can you erase bad credit fast?

Situations vary but normally it takes from a minimum of thirty days to sixty days for you to see progress along these lines even when you use a credit repair company. Typically, if you do it yourself, it may take a longer amount of time.

On your credit report, what is an inquiry?

An inquiry listed on a credit report refers to any potential lender or creditor who looks at your credit report information in order to to consider you for a loan or credit. Too many inquiries can drive down your credit score. So it’s a good idea to keep this type of activity to minimum when it comes to your credit score.

On your credit report, what does it mean to have a credit account reinstated?

It means that a previously closed account is now available for use again.

When placing a dispute, how many days does a creditor have in order to respond to a credit bureau’s inquiries with regards to your allegations?

The creditor has 14 business days in which to respond. If no response is made in that window of time, then the disputed report must be expunged and an updated file will be mailed to you for your confirmation.

On a credit report, what is the definition of a charge-off?

A charge-off on a credit report is a credit amount that could not be collected by a creditor.

What are the two acts that protect your rights with respect to erasing bad credit information from your file?

The two acts instituted to protect your rights in this regard are the Fair Credit Reporting Act (FCRA) and the Fair Debts Collection Practices Act (FDCPA).

What does the Fair Credit Reporting Act say with regards to the information on your credit report?

The Fair Credit Reporting Act (FCRA) stipulates that the information on your credit report must be accurate, timely and verifiable in order for such information to stay on your report.

What is the key area that affects your credit score on a credit report?

Your payment history is the primary factor that affects your score. Also the amount of your debt has a significant influence.

The FAQs above should assist you if you’re wondering how to erase bad credit from your report. There are a number of credit repair companies as well who can help with erasing bad credit. Research the Internet and you can find answers to your questions and receive further help in this area for you and your family.

Erasing Misconceptions

Legally, we’re told that bad credit items normally stay on one’s credit report for seven or ten years depending on the item. However, this isn’t true. The law only stipulates that accurate credit may stay on your report for a period of seven years. This doesn’t mean that erasing bad credit before 7 years isn’t an option.

Paid Charge-offs

However, one must remember even if they pay off an older account, it may be shown as a “paid charge-off” meaning this item will remain on your report for another seven years. So, paying off your older credit card debt can actually hurt you with respect to how it’s conveyed on your report.

Erasing a Previous Item

You can erase bad credit fast, even listings such as judgments and bankruptcy if you hire the right company to handle it for you. Part of understanding how to erase bad credit is noting what the Fair Credit Reporting Act says about erasing bad credit. According to the Act, if a negative item is not verified within a 30-day span of time, the item should be deleted permanently from the report. If you see an item that was previously removed appear on your report, you can have it removed immediately by alerting the credit bureau in this regard.

Declaring Bankruptcy does not Clear your Report of Negative Items

Some people believe if they declare bankruptcy that by doing so they can erase bad credit legally; however, this isn’t the case. You still have to seek the aid of a professional to erase bad credit from the report. It isn’t surprising then that the Federal Trade Commission (FTC) gets the majority of their complaints issued against credit bureaus over all other kinds of businesses.

CCCS

What’s more if you’ve opted to go through a Consumer Credit Counseling Service, you do nothing to help your bad credit situation either as many times creditors or lenders, upon hearing you went through such an organization with respect to debt mediation, will treat you no better than if you’d actually declared bankruptcy. As stated, there is no hard and fast rule in the law that any type of credit must be reported at all; therefore disputed items can definitely be erased.

To find a company to erase bad credit for free will not likely happen soon. Nonetheless, paying the cost for erasing bad credit is a necessary expenditure to make amends for your financial history.

(1) If you’re securing an auto loan for bad credit with a high APR, what is one of the items you should exclude from your financing?

(a) Don’t include any additional insurance in your payment amount.

(b) It’s best not to add the costs of any type of extended warranty into the amount of your loan.

(c) You should always include the costs associated with an extended warranty or additional insurance in your payments regardless of the APR.

(d) Both a and b

Answer: (d) Both a and b. Since you already carry auto insurance, you should refrain from including any additional insurance in your loan amount as well as the costs associated with an extended warranty. Wait until you can refinance the vehicle at a lower amount to add these types of amenities.

(2) What items will lower your credit score when applyng for a bad credit auto loan financing?

(a) Making applications for credit will reduce your score.

(b) Attaining your credit score before you walk into the dealer.

(c) Obtaining your credit report online.

(d) None of the above.

Answer: (a) Anytime you try to apply for credit, an inquiry is made that will lower your credit score. Simply obtaining your credit report will not affect your score.

(3) With regards to obtaining an auto loan for people with bad credit, what is the “car enhanced score?”

(a) A car enhanced score is a score that is either higher or lower than your regular credit score and is based on your credit worthiness when applying for an auto loan with bad credit.

(b) This score is the score used to measure your payment habits on your credit report.

(c) If your credit score is high, it’s referred to as a “car enhanced” score.

(d) The car enhanced score is a statistical formula used to assign a value to the number of applications you’ve made to obtain a bad credit auto loan refinance.

Answer: (a) The car enhanced score is a variation of the credit score that lenders use when you apply for a bad credit auto refinancing loan.

(4) What main criteria do lenders use in appproving you for an auto bad credit loan with regards to your credit report?

(a) They review the amount of open accounts you have and your length of employment.

(b) They consider your payment habits and the number of loan and credit accounts your hold.

(c) They determine your credit worthiness based on the number of financial transactions you have on your report and how long you’ve been at your residence.

(d) None of the above.

Answer: (b) With regards to your credit report, the key criteria lenders consider in the approval process for a bad credit auto loan financing are the number of open accounts you have and your history with respect to paying them on a timely basis or paying them off.

(5) Which of the following can be used as a down payment when obtaining a bad credit auto loan refinance?

(a) Cash

(b) A manufacturer’s rebate

(c) Trade Equity

(d) Both (a) and (c)

Answer: (d) Although you may still have to secure cash in addition to the trade-in value of your car, they can both be considered a down payment on the purchase price. A manufacturer’s rebate can be used to reduce the sales price of a vehicle but it is not considered to be a down payment when applying for an auto loan for people with bad credit. Therefore, if you’re trying to secure a bad credit auto loan and need a down payment to attain a loan, a manufacturer’s rebate will not count in this regard.

Hopefully, you’ve been able to garner a bit more understanding from answering the above questions. Look online and research the various lenders who provide bad credit auto loans and see how much more you can find out with respect to buying a vehicle for your current needs.

The Bad Credit Blues
Forget that you have a credit score that you wish you could junk with your old vehicle. You can get back behind the wheel of a new model car by applying for a bad credit car finance loan. So, what do you need to do in order for this to take place? Well, besides selecting a car to buy, you’ll need to make sure you can meet the criteria that most lenders who provide car financing for bad credit are looking for in the way of eligibility.

Eligibility Requirements

If you have no credit history, you should be on your job a year before applying for a loan. With a credit history, you’ll need to show proof that you’ve been on the job two years before trying to secure any car financing for bad credit loan. Typically the minimum monthly income requirement is $1500 for most bad credit car loan financing programs. In addition, you can’t have a repossession within the last year unless it’s part of a bankruptcy. Oh! And one more thing, it’s a requisite that you be at least 18 years old.

The Payment Structure
Your monthly payments for your car financing with bad credit loan will be based on the sales price of the vehicle you’re purchasing and your credit report. If you choose to buy a newer model automobile with lower miles, many times lenders can extend the terms of the loan making the payments lower. This is especially helpful if you have to finance your vehicle for a higher APR. If you’re so fortunate, you can secure a great deal on most vehicles that are lower priced with an odometer reading of less than 5000 miles.

The Benefits of Finding a Lender Online
Rather than secure your loan from a “buy here, pay here” dealer, using the Internet to find a lender who specializes in financing a car with bad credit is the better choice for most sub-prime borrowers. With a “buy here, pay here” dealer, you don’t need to reveal your credit history which many sub-prime borrowers like. However, once you purchase the vehicle, none of your payment transactions are recorded on your credit history. Therefore, you don’t have the chance to climb out and away from your poor credit standing. With bad credit car financing, by making your monthly payments, you’ll have the chance to qualify for a lower interest loan in the future.

Look online today if you’re in the market for a new car. There’s a lender out there who will help you with your bad credit car finance loan.

photo credit: Rachel Strohm

(1) When applying for auto bad credit loan, if you need to remove disputed items on your credit report, you might have to wait at least 6 weeks before you can apply for an auto loan for bad credit.

Answer: False. Normally, it takes about 60 days to remove disputed items on your credit report.

(2) If you’ve just moved, a lender will still look favorably on your application for an auto loan for people with bad credit.

Answer: False. If you’ve moved in the last six months, lenders will not consider this to be a favorable item in considering you for an auto loan with bad credit. Lenders do not like people who move around. They like people who are stable and continue to prevail in their circumstances.

(3) You’re usually considered a sub-prime borrower at any credit score below 500.

False. Generally, if you’re score falls below 500, you’re not considered any type of borrower even for a bad credit auto loan refinance. Sub-prime borrowers have credit scores that range from 550 to 680.

(4) If you want to be considered for a bad credit auto refinancing loan you should make sure you’re not trading a car you still owe money on, that disputed items are removed from your credit report and that your debt to income ratio and credit balances are low.

Answer: True. Lenders like to see this kind of stuff.

(5) If you’re a recent college graduate and have yet to obtain a job, you can still qualify for an auto bad credit loan.

Answer: False. If you’ve just graduated from college, you shouldn’t consider applying for an auto loan for bad credit until you’ve been on the job for at least six months.

(6) It usually helps to show that you’re paying on a mortgage or that you’ve had a past refinance when applying for bad credit auto loan financing.

Answer: True. Mortgage loans and refinances show a degree of stability and that the consumer has been and is making regular payments to pay off a debt.

(7) With regards to obtaining an auto loan for peole with bad credit, if you do not have a credit history, you should be on the job at least one year with the same employer.

Answer: True. This is the minimum requirement.

(8) If you have a credit history, you should be on the job at least 6 months with the same employer to qualify for an auto loan with bad credit.

Answer: False. You should be permanently employed for at least two years to be considered for a bad credit auto loan refinance.

(9) When being considered for bad credit auto refinancing loan, you should not have had a repossession in the last 2 years unless it was included in a bankruptcy.

Answer: False. Normally you’ll be considered for a bad credit auto loan if the repossession occurred within the last year outside a bankruptcy.

(10) If you’re a sub-prime borrower and you have a co-signer, the lender can use the co-signer’s income in order to approve a bad credit auto loan.

Answer: False. Your loan will still be based on your income even if you have retained a co-signer to pledge to pay the loan amount.

How did you do? You can still obtain an auto loan with bad credit. It just takes knowing what steps to take and you’ll be in a new car in a small amount of time.

photo credit: shelms

(1) What is an auto bad credit loan?

An auto bad credit loan is designed for people with bad credit, typically those individuals who have a credit score below 680 so they can obtain reliable transportation.

(2) Can you still qualify for an auto loan for bad credit if you’re self-employed?

Yes. You can still qualify for bad credit auto loan financing if you’re self-employed although your income is harder to prove. Therefore, when being considered for this type of loan, make sure you provide tax returns for the past two years that have been completed by a tax professional.

(3) What documentation do you need when you apply for an auto loan for people with bad credit?

For income verification, you will need a pay stub from your employer. Other documentation includes a telephone or utility bill to verify your address and phone number and your most recent bank and credit card statements from the last 30 days. In addition, about four references are required and, if you don’t own a home, a phone number for your landlord to verify that you’re up-to-date on your rent.

(4) I’ve heard that obtaining a loan through a “buy here, pay here” dealer is an option for people with bad credit. Is this a good way to secure an auto loan with bad credit?

A “buy here, pay here” dealer type of loan is where the sub-prime borrower obtains his loan through the same dealership he purchases his car. No credit history is required which may lead you to believe this is a good loan to obtain if you have a damaged credit score. However, attaining a bad credit auto loan refinance  over the Internet is, in most instances, a better choice . Your payments for a dealer financed loan are not recorded on your credit report where payments are documented if you don’t obtain dealer financing. Therefore, a bad credit auto refinancing loan not obtained through a dealer gives you the opportunity to prove, by making your monthly payments, that you can qualify for a lower-interest loan at a later date.

(5) How are my monthly payments determined for an auto loan for bad credit?

Your monthly payments are based on your credit profile and the sales amount of the automobile you choose to purchase.

(6) How can I qualify for extended terms if I want to lower the amount I spend each month even more?

Usually, if you purchase a newer, lower-mileage vehicle, you’ll be able to qualify for an extended term on your bad credit auto loan financing amount.

(7) If a down payment is required, how much should you put down in order to assure you’ll be approved for an auto loan for people with bad credit?

If you can put down 20% of the sales price, you’re pretty much guaranteed that you’ll secure an auto loan with bad credit.

(8) What are some steps you can take in order to get a better APR on a bad credit auto loan refinance?

If you can repair your credit before applying for the loan, this can be most helpful. Paying off some large debt credit cards can raise your credit score by as much as 200 points. Therefore, lowering your debt and making timely payments six months before applying to obtain a car loan can assist you in getting a better deal. Also, know your credit score before making application. Be well-prepared to handle any questions a lender may have about the negative items on your report. If you can lower your score, maintain a habit of paying on time and reduce some of your debt load, you’ll have the leverage to succeed in obtaining a bad credit auto refinancing loan.

(9) What type of auto is the preferred type of vehicle to finance when it comes to a bad credit auto loan?

Typically, if you select a newer model car (1 or 2 years old) with less than 50,000 miles, you will have a vehilce that most bad credit auto lenders prefer to finance.

There’s a lot of opportunity on the Internet to finance your vehicle even if you now suffer from a low credit score. Check out your options. There’s a lender out there who is willing to work with you.
photo credit: dno1967

Patience is a Virtue
However, if you’re like most people, you’ll probably have to wait it out and apply to one of the programs that offer mortgage loans for bankruptcy after the two-year period. At that time, you can normally finance a loan for 100% if you’ve demonstrated that you’ve made all your payments and as a result increased your credit score.

Down Payment Alternatives
If, at the time of the application for a bankruptcy home mortgage you don’t have the money for a down payment, there are programs that can assist you with your down payment. In addition, grants are available that are available that do not require repayment. Searching online can give you a better idea of the specific bad credit mortgage loan programs that are provided in this regard.

Establish a Routine
That said, it’s still important that you make the effort to show a potential lender that you’re a good payer. Therefore, after you’re discharged from your bankruptcy, you’ll need to make some significant changes in the way you spend your money. Establish a savings plan as well as make it a habit to pay each of your debts on time. Do not apply for any further credit or loans. Take care of the obligations already in force. By demonstrating you’ve developed a routine of conscientiously paying your debts and saving your money, you can turn your financial situation around in your favor.

It’s all in the Past
Lenders who provide bankruptcy mortgages want applicants who have a proven history of reliability with respect to their credit. Therefore, start initiating a plan to remove the stigma of bankruptcy once and for all.

Put your Best Financial Foot Forward
When you get to the point of applying for a bankruptcy mortgage loan, you’ll want to view your payment history and credit score as a lender will. Have the payments been made on a regular basis? Have there been any late pays or no-pays? How many times has the applicant applied for credit? How many inquiries have been made in this regard? Inquiries will lower your score so you have to be careful when applying for any credit or loans. Present yourself in a way and with the qualifications that you know a lender who provides bankruptcy mortgage loans can’t dispute. By altering your behavior and learning to discipline yourself, you can easily obtain a bankruptcy home mortgage for you and your family.

photo credit: BLW Photography

Financial Management
It normally takes about two years for a person to regain their financial standing after bankruptcy. Therefore, during that time it’s important for you to make a conscientious effort to make regular payments on the debts you currently hold, establish a savings plan and review and remove any errors on your credit report. This way you can start building your credit and proving yourself to potential lenders that you will be a good future risk to pay back a loan. Therefore, there is no reason to despair over qualifying for a bankruptcy home mortgage. It can be done if you will change your spending and saving habits and persevere. By doing so, you will be able to qualify for a bankruptcy mortgage and have more control of your financial future.

Make your Payments on Time
Therefore, it’s imperative you make timely payments on all your current debt obligations as well as eschew any more credit or loans. Concentrate on managing what you already have in the way of financial obligations. Keep the amount of inquiries on your credit report to a minimum as well as this can further lower your credit score. Your goal is to rebuild your credit and therefore increase your score. Thus, it’s essential you do everything you can in order to meet this goal. Lenders like to see someone regularly meet their expenses and satisfy their debts. Do what needs to be done in order to accomplish this and you’ll be able to obtain a bankruptcy mortgage loan without difficulty.

Review your Credit Reports
When you feel you’re ready to apply to one of the programs that offer bankruptcy mortgages, get a head start in the process by securing your credit report from each of the three credit reporting agencies. Look and compare the three reports to make sure that each is correct. If you find any errors, seek to correct them as soon as possible before becoming involved in the loan process.

How you File Bankruptcy makes a Difference
You’re in a better position to obtain any of the mortgage loans after bankruptcy if you filed Chapter 13 Bankruptcy versus Chapter 7. Chapter 13 Bankruptcy includes the provision that you are still working at paying off your debt or the intention is there. Chapter 7 Bankruptcy absolves you from any further liability with respect to certain obligations; therefore, a potential lender will usually not look favorably on this type of bankruptcy as it shows you did not or could not pay back your creditors.

A Goal for the Future
As stated, before trying to apply for a bankruptcy home mortgage, you should make every effort to build your credit score by making timely payments and establishing a regular savings plan for a period of about two years. In order to overcome the stigma of bankruptcy, you’ll need to concentrate in demonstrating to any potential lender that you can be financially reliable. It’s important to do if you wish to have a future that is secure for your family.
photo credit: box of lettuce

A Large Selection of Lenders
You can obtain the car you want through bad credit car loan financing sometimes in 24 hours. Some programs will even work with people with scores below 500 without a required co-signer. Even if you’ve had bankruptcy, some lenders are more than willing to work with you so you can get into the transportation you need. Whether you have a bad credit history, need to purchase an auto after repossession or bankruptcy, or have no credit history, there are car financing with bad credit funding programs that can help you get back on your feet again financially.

A Chance for a New Beginning
One thing that is great about financing a car with bad credit funding is the fact that you can start rebuilding your credit the instant you do so. By obtaining such a loan and paying your auto installments on time, you can start to make inroads towards improving your credit score.

Additional Savings
Many of the loans that are secured through bad credit car financing can be financed 100% with nothing down. Some will even give you the choice of buying from a private individual or you can use your trade-in as equity towards your loan amount. This way, you don’t have to rely on a dealer to grant you the loan for your auto which in many cases will provide you with an additional savings when financing a car with bad credit.

Getting the Best APR
Nevertheless, it’s important to remember that your APR will be determined by your credit report as well as the equity or additional down payment you provide for your bad credit car finance loan. That’s why it’s important that you can find and work with a lender who will give you the best deal possible with respect to your bad credit car loan financing loan. Although many lenders will forego the down payment requirement, if you do provide a down payment and can increase your credit score to some extent before you apply, you’ll no doubt get a lower interest rate on your loan and therefore lower payments. Also, take note that securing car financing with bad credit is more auspicious if you buy a new car versus financing an older model car as purchasing an older model will add to your APR.

Income Requirements
Even if you use a co-signer in some cases when obtaining car financing for bad credit, you still will have to meet the requirements when it comes to income. Usually if you’ve been on a permanent job for at least a year, you should qualify.

Whatever the reasons behind your credit problems, there is a solution. Search online and you can find a remedy with a car financing with bad credit loan.
photo credit: aresauburn™