topic Re: Auto Loan after Repo in Auto Loans

Auto Loan after Repo

Anonymous — Tue, 29 Nov 2016 18:42:32 GMT

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 ?

Re: Auto Loan after Repo

StartingOver10 — Thu, 01 Dec 2016 15:21:29 GMT

@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.

Re: Auto Loan after Repo

Anonymous — Thu, 01 Dec 2016 15:27:58 GMT

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.

Re: Auto Loan after Repo

Anonymous — Thu, 01 Dec 2016 15:28:18 GMT

Dispute*

Re: Auto Loan after Repo

StartingOver10 — Thu, 01 Dec 2016 15:31:21 GMT

@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.

Re: Auto Loan after Repo

Anonymous — Thu, 01 Dec 2016 15:55:16 GMT

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?

Re: Auto Loan after Repo

StartingOver10 — Thu, 01 Dec 2016 16:18:20 GMT

@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.

Re: Auto Loan after Repo

Anonymous — Thu, 01 Dec 2016 16:22:57 GMT

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.

Re: Auto Loan after Repo

StartingOver10 — Thu, 01 Dec 2016 16:36:50 GMT

@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

Re: Auto Loan after Repo

Anonymous — Thu, 01 Dec 2016 16:47:22 GMT

I am not able to get a Secured card.

Thank you for the links. I will scope them out.

Re: Auto Loan after Repo

Anonymous — Thu, 01 Dec 2016 22:42:18 GMT

Are you sure? Have you tried Capital one secured mastercard? I have a repo (falls off in 2019). And when I applied for mine I had a 403 credit score. (just the memory makes me cringe). I applied in october of last year for cap one smc and got approved for a $200 limit with only a $99 deposit. If you havent already I would really give them a try. They have helped me so much in regards to rebuilding my credit.

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 00:09:22 GMT

Thank you! I intend on doing OpenSky tomorrow with fears that no one else will accept me. How long did it take you to get to the high 500's? Literally a year ?

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 00:16:25 GMT

No I was actually in low 600's about 5 months ago. I had gotten all baddies removed and was doing really good. And wham! my past came back to haunt me (woe is me). Got hit with a whopping $1900 collections acct and just like that a 90 point drop. I could have **bleep**ted myself.

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 16:51:41 GMT

Were all your baddies valid?

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 18:24:46 GMT

Every single one of them. When I started out rebuilding my credit a year ago I think I had about 8/9 baddies,. Fortunately for me out of all the badies I had most fell off when I disputed them because they couldnt prove I actually owed them the debt. Wound up only having to actually pay one off. I have a repo still on there but its a CO so theres nothing to be done about it till it falls off.

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 18:27:54 GMT

So you disputed the valid ones and you won? How old were they? I am looking to do that for valid ones but I was leaning more towards Goodwill letters instead.

Thanks

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 18:33:29 GMT

I personlly think you should try to do the online dispute first before you do good will letters. Its much easier. And yeap every collections and or late payment was valid. And I disputed them via the transunion online dispute website. And in less them 30 days all but 2 had fallen off. I was so excited. You should really give it a try. And if it doesnt work then do the good will letters. I think most of mine had been on there at least 2-3 years. Depending on how long yours have been on there you may just want to wait for it to fall off

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 18:37:42 GMT

thank you - you rock. I am personally okay with having my few baddies on there and just getting rid of my Repo but I don't think that is possible. it might have to be vice versa.

thanks for all your help & Congrats!

Re: Auto Loan after Repo

Anonymous — Fri, 02 Dec 2016 18:39:22 GMT

Lol. You are most welcome! And good Luck to you . #HappyHolidays :-)