Posted on: 12 July 2016
If you have had a repossession, it may seem almost impossible to get another auto loan anytime soon. However, if you take the right steps, getting an auto loan won't be entirely impossible. Here are four tips to consider in order to get an auto loan after a repossession:
- Check Your Credit Report: First off, you should take a look at your credit report. Although the repossession you had will drag down your credit score, other areas of your credit report may be dragging it down even more. It's important that you know what these other credit hits are so that you can repair them. You will also want to check for any errors on your credit report and dispute them so that they can be taken off and your credit can go up slightly.
- Reduce Credit Debts: Any debt that you have on credit cards should be paid off to ensure that your credit goes up. A high amount of debt on credit cards will bring down your credit score, especially if you have any credit cards that are maxed out. When you make high payments on any credit cards, you want to ensure that it is being reported to the credit bureau to ensure that your credit score is affected in a positive way.
- Save Money for a High Down Payment: The more money you save for a down payment on a car, the more likely you are going to be eligible for a car loan despite your previous repossession. The reason for this is that lenders will take you seriously when you are putting forth the effort to pay for most of the car on your own. On top of this, the lender will give you a more reasonable interest rate, which will be hard to come by when you have a previous repossession.
- Bring Proper Documents: When you have a previous repossession, many lenders will have more strict requirements for you to adhere to. For this reason, you will want to bring proper documentation that the lender will most likely want to take a look at. This includes income documentation, proof of address, and previous tax returns. When you bring these along, you can be sure that the process of getting an auto loan can be a bit quicker.
When you consider these four tips for getting an auto loan after having a repossession, you can be sure that you are more likely to receive the perfect auto loan.
For an auto loan, contact a company such as TruPartner Credit Union.Share