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Auto Loan after Repo

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Anonymous
Not applicable

Auto Loan after Repo

I recently had a REPO this week, paying the whole balance of the car on Friday.
Currently my score is 450- I know. Was denied from road loans, which was my last resort since I was more than willing to pay the high interest.

I am on a serious mission to fix my credit and to have a loan with smaller payments so I can begin this treacherous process.

Does anyone have any advice ? Do you think it is possible to get an approval once the repo / previous loan is paid ?
18 REPLIES 18
StartingOver10
Moderator Emerita

Re: Auto Loan after Repo


@Anonymous wrote:
I recently had a REPO this week, paying the whole balance of the car on Friday.
Currently my score is 450- I know. Was denied from road loans, which was my last resort since I was more than willing to pay the high interest.

I am on a serious mission to fix my credit and to have a loan with smaller payments so I can begin this treacherous process.

Does anyone have any advice ? Do you think it is possible to get an approval once the repo / previous loan is paid ?

I think it would be wise for you to keep the car you are paying off tomorrow until you can get your credit in order. Going out for another auto loan right away would result in denials and if you ended up with one, the rate would be awful.

 

Take the time to restore your credit score, which can be done. Visit the rebuilding forum. Some people have been able to get their scores up quickly and others take longer. It depends on what is on your reports, both baddies and good tradelines.

Message 2 of 19
Anonymous
Not applicable

Re: Auto Loan after Repo

Thank you for responding.
I have no way to actually rebuild my credit if I have no open trade lines, correct?
Most of my bad marks are valid, and I cannot despute those.
Message 3 of 19
Anonymous
Not applicable

Re: Auto Loan after Repo

Dispute*
Message 4 of 19
StartingOver10
Moderator Emerita

Re: Auto Loan after Repo


@Anonymous wrote:
Thank you for responding.
I have no way to actually rebuild my credit if I have no open trade lines, correct?
Most of my bad marks are valid, and I cannot despute those.

Right^^, but it is highly inefficient to use installment loans for rebuilding. You can use revolving TL's (cc's) to rebuild. Once you get your score up a little, then consider a Share Secured Loan (small) for $500. It will give you the boost you need to get that mix of credit. Then consider an actual auto loan. 

 

You can goodwill TL's that are valid rather than dispute them. The rebuilding forum has some excellent tips for rebuilding. 

Message 5 of 19
Anonymous
Not applicable

Re: Auto Loan after Repo

Thank you!

I will try my best with the Goodwills and keep my credit with zero trade lines. In the meantime, do you think it will help that I am an authorized user on two cc's and they have on time payments, low usage, etc?
Message 6 of 19
StartingOver10
Moderator Emerita

Re: Auto Loan after Repo


@Anonymous wrote:
Thank you!

I will try my best with the Goodwills and keep my credit with zero trade lines. In the meantime, do you think it will help that I am an authorized user on two cc's and they have on time payments, low usage, etc?

How will your score increase if you have zero tradelines and are AU only on two cc's?  The way scoring works, in part,  is by calculating your payment history and utilization on revolving accounts.  Go to Understanding FICO scoring so you get both a big picture idea of the scoring system and details.  You need to have at least 1 TL of your own - and it is probably better to have 3 of your own. You don't have to spend money. Just have a satisfactory history. 

Message 7 of 19
Anonymous
Not applicable

Re: Auto Loan after Repo

Understood. And I will visit both forums you mentioned. My question is how can I even begin to rebuild credit (with a goal of getting a secured card, and later, an auto loan) when I cannot even achieve a trade line.
Message 8 of 19
StartingOver10
Moderator Emerita

Re: Auto Loan after Repo


@Anonymous wrote:
Understood. And I will visit both forums you mentioned. My question is how can I even begin to rebuild credit (with a goal of getting a secured card, and later, an auto loan) when I cannot even achieve a trade line.

A secured card is a tradeline. 

 

Once you get one secured cc and pay as agreed, your score should pop up considerably.  Then you should be able to get an unsecured cc. The rebuilding section has specific ideas for building your credit. Look at the top of that section under Helpful Threads for some great tips.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

 

Here is Understanding FICO Scoring   http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/bd-p/ficoscoring

 

 

Message 9 of 19
Anonymous
Not applicable

Re: Auto Loan after Repo

I am not able to get a Secured card.

Thank you for the links. I will scope them out.
Message 10 of 19
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