How Can You Get A Car Loan After Foreclosure?
A foreclosure on your credit report can have a huge negative effect on your credit score. And if
you have a low credit score, the more difficult it would be for you to get any type of credit. Still,
despite a low credit score, you can still get a car loan after a foreclosure but it will of course
prove to be challenging and you have to be determined enough to put enough money and effort
1. The most important thing that you’re going to need for this is your credit. Check your credit
report for any discrepancies that you actually remove. However, a foreclosure on your credit
report cannot be removed for at least 7 to 10 years. You can file a dispute for other items on
your report to get them removed especially if they are simply errors. This will your credit score a
quick boost and you may even raise your credit score enough to get you that car loan.
2. Another you can do is ask for help from your family members and if they are willing to co-sign
a car loan for you. Most people are reluctant with this because of the obligations that go along
with it. However, they may understand your situation better if you explain to them that you are
under a foreclosure spell and that you are really willing to pay back the loan.
3. Lenders would be reluctant to give you a new line of credit because of your low credit rating;
in order to appease that, you must provide a significant amount of down payment will get you
the loan faster and you will seem appealing to other lenders as well. A higher down payment will
increase you’re your ability to get loans.
4. There is such a thing as a pre-approved loan wherein you can ask for assistance from your
credit union. Your negotiating power with this one will be higher you are more likely to get
approved for a loan this way.
5. If you are still finding it hard to get a loan after a foreclosure even with the advances that
you’ve made, you can to your dealer for help. If this is however, what you’re going to resort to,
be advised that some dealers and banks may try to swindle you for money and they may add
unnecessary charges to your bill, but expect to have a higher interest rate.
1. Don’t forget to check your credit reports at least thrice a year to be able to keep up with all of
your finances. Lenders really value ones credit history and you should do whatever it takes to
keep it in good shape.
2. Also, there are car dealers who will allow you to take home the car while you’re waiting for
your loan to be approved, but they will usually ask from you a bigger price.
Joy is an active blogger who shares extremely interesting finance management tips over the
web that encourages people to manage their personal finances, check credit score regularly
and review changes in credit score through a credit score planner before taking any major