Frequently Asked Questions
Question
"We had a discharged bankruptcy last August. How do I find dealerships that help people with past credit problems? I know our credit has improved a lot since last year."
Question
"Can a person who has filed for bankruptcy still get an auto loan? And if so, how long must a person wait after filing chapter 7 before they can get an auto?"
Question
"I would like to know what credit reporting agency you use to pull credit reports. Also, is there a minimum beacon score you must have to qualify for a loan? I do not want to pull my credit report if not necessary."
Question
"Hello, I have found the vehicle that I wish to purchase, but am having trouble securing an auto-loan if not purchasing from a franchise dealership. The dealer that I wish to buy from is licensed, but it is a private dealership. Can you help?"
Question
"A dealer called me to say that I could be financed there. Are my choices limited to one dealer? I have a bankruptcy discharged in May and want to reestablish credit but do not want more queries on my report."
Question
"I would like to apply for a loan for a purchase at a local non-franchised dealer. Will this be a problem?"
Question
"I have a question regarding a local dealer. I have a car picked out but I'm not sure how your loan process works. If I get approved do I have to use a specific dealer or can I go to the one I already am interested in?"
Question
"I wanted to know if you do in home financing and if so what are the requirements. I don't have good credit."
Question
"Do you have any no money down loans that would require not even tags and taxes to be given at time of purchase? My son is 18 and has no credit and needs a car but we don't really have tax or tag money."
Question
"Do you finance 100% on a new vehicle? I don't have money for a down payment."
Question
"My credit score is 534 with a voluntary repo. I will have a cosigner with a score of 550. I am willing to put money down but need 30 days to come up with it. I need to get the vehicle today."
Question
"Hi, I have a bit of a dilemma. I have a 2002 Dodge Neon that is financed. I owe about 11,000 on it. I was a teen who really needed a car and I got "suckered." I got this car in March 2004. What I want to know is, is there a way for me to obtain a new loan on a car and get rid of my existing loan. I have heard of many different methods for this. One that I have heard of is that the new loan company subtracts the value of the car from the balance and add the remainder to the new loan and payments be made accordingly. I have heard of other methods, but do not understand them enough to explain them. I really want another car. Please respond with some information. Thank you."
"We had a discharged bankruptcy last August. How do I find dealerships that help people with past credit problems? I know our credit has improved a lot since last year."
Answer
You can apply online and your application will be processed by a dealership in your area that specializes in financing after bankruptcy. If you would like to apply directly with the dealership, please email us your zip code and we will send you the contact information for the local dealer.
You can apply online and your application will be processed by a dealership in your area that specializes in financing after bankruptcy. If you would like to apply directly with the dealership, please email us your zip code and we will send you the contact information for the local dealer.
"Can a person who has filed for bankruptcy still get an auto loan? And if so, how long must a person wait after filing chapter 7 before they can get an auto?"
Answer
In some cases you are eligible for financing after the initial meeting of your creditors (341 meeting, first court date). In every case you are eligible immediately after the bankruptcy is discharged.
In some cases you are eligible for financing after the initial meeting of your creditors (341 meeting, first court date). In every case you are eligible immediately after the bankruptcy is discharged.
"I would like to know what credit reporting agency you use to pull credit reports. Also, is there a minimum beacon score you must have to qualify for a loan? I do not want to pull my credit report if not necessary."
Answer
The authorized dealer in your area will generate a credit inquiry to determine which lender programs you qualify for. The reporting agency used varies by location. Also, the lender that your application is submitted to will generate an inquiry. Most lenders now use a service that merges all three major credit reports. The authorized dealer in your area has access to lenders that ignore the credit score on the report. If you score is less than 525 (average), however, your auto loan request would be limited to these lenders.
The authorized dealer in your area will generate a credit inquiry to determine which lender programs you qualify for. The reporting agency used varies by location. Also, the lender that your application is submitted to will generate an inquiry. Most lenders now use a service that merges all three major credit reports. The authorized dealer in your area has access to lenders that ignore the credit score on the report. If you score is less than 525 (average), however, your auto loan request would be limited to these lenders.
"Hello, I have found the vehicle that I wish to purchase, but am having trouble securing an auto-loan if not purchasing from a franchise dealership. The dealer that I wish to buy from is licensed, but it is a private dealership. Can you help?"
Answer
The lenders within our network are indirect lenders. That is to say they only provide loans through their dealer partners. In your case we would be limited to the lenders availed to the independent dealership that you mentioned.
The lenders within our network are indirect lenders. That is to say they only provide loans through their dealer partners. In your case we would be limited to the lenders availed to the independent dealership that you mentioned.
"A dealer called me to say that I could be financed there. Are my choices limited to one dealer? I have a bankruptcy discharged in May and want to reestablish credit but do not want more queries on my report."
Answer
For quality control and monitoring we limit the number of dealers in each area. We do have multiple dealers in most major metro markets. In either case your loan request is processed by the closest dealer. In the past we listed the dealership's name, phone number, and contact person on the site. Unfortunately we had to remove them after receiving numerous complaints from our special finance managers within the dealership that they were receiving far too many telemarketing calls from online marketing companies.
For quality control and monitoring we limit the number of dealers in each area. We do have multiple dealers in most major metro markets. In either case your loan request is processed by the closest dealer. In the past we listed the dealership's name, phone number, and contact person on the site. Unfortunately we had to remove them after receiving numerous complaints from our special finance managers within the dealership that they were receiving far too many telemarketing calls from online marketing companies.
"I would like to apply for a loan for a purchase at a local non-franchised dealer. Will this be a problem?"
Answer
If you apply with us we cannot process your loan through every dealer. Our dealer network is limited to maintain the quality of our service. Please provide us with the name of the dealership and we'll let you know if they are part of our network. Nationwide, however, we only have a handful of independent dealers within our network.
If you apply with us we cannot process your loan through every dealer. Our dealer network is limited to maintain the quality of our service. Please provide us with the name of the dealership and we'll let you know if they are part of our network. Nationwide, however, we only have a handful of independent dealers within our network.
"I have a question regarding a local dealer. I have a car picked out but I'm not sure how your loan process works. If I get approved do I have to use a specific dealer or can I go to the one I already am interested in?"
Answer
We work within a network of indirect lenders. Your local dealer would actually be the one processing your loan. If you are looking for a lender that would provide funds for you to purchase from the specific dealer you mentioned you should search for a direct lender or let the specific dealer process your loan. We have not had success finding a ciredt lender that does a decent job with bad credit financing nor have we had luck convincing dealers outside of our network to sign up with the indirect lenders that do a good job lending to people with credit problems.
We work within a network of indirect lenders. Your local dealer would actually be the one processing your loan. If you are looking for a lender that would provide funds for you to purchase from the specific dealer you mentioned you should search for a direct lender or let the specific dealer process your loan. We have not had success finding a ciredt lender that does a decent job with bad credit financing nor have we had luck convincing dealers outside of our network to sign up with the indirect lenders that do a good job lending to people with credit problems.
"I wanted to know if you do in home financing and if so what are the requirements. I don't have good credit."
Answer
We do not originate loans. Most lenders that provide financing for people with sub-prime credit are direct lenders and only purchase finance contracts from licensed auto dealers. There is not a lending program that offers direct loans to people with high risk credit that we can recommend.
We do not originate loans. Most lenders that provide financing for people with sub-prime credit are direct lenders and only purchase finance contracts from licensed auto dealers. There is not a lending program that offers direct loans to people with high risk credit that we can recommend.
"Do you have any no money down loans that would require not even tags and taxes to be given at time of purchase? My son is 18 and has no credit and needs a car but we don't really have tax or tag money."
Answer
There are no money down programs. It is unlikely that your son would qualify by himself. If he applies on his own he would most likely fall into a "First Time Buyer" program. Most FTB programs require at least 15% of the sale price, not including taxes. If a prent with fair credit was listed as a co-buyer you should qualify for a zero down program.
There are no money down programs. It is unlikely that your son would qualify by himself. If he applies on his own he would most likely fall into a "First Time Buyer" program. Most FTB programs require at least 15% of the sale price, not including taxes. If a prent with fair credit was listed as a co-buyer you should qualify for a zero down program.
"Do you finance 100% on a new vehicle? I don't have money for a down payment."
Answer
There are zero down payment lending programs. You may also qualify for lending programs that require no down payment if you are purchasing a new car with a rebate or you have a trade in, regardless of its condition.
There are zero down payment lending programs. You may also qualify for lending programs that require no down payment if you are purchasing a new car with a rebate or you have a trade in, regardless of its condition.
"My credit score is 534 with a voluntary repo. I will have a cosigner with a score of 550. I am willing to put money down but need 30 days to come up with it. I need to get the vehicle today."
Answer
The information provided is not enough to determine if you would qualify for aloan. As far as the down payment, deferred down payments (30 days) would have to be disclosed on the finance contract to comply with the Truth in Lending Act. If it is not it is considered an attempt to deceive the lender. Most lenders to not allow deferred down payments. Based on the information you provided, I would guess that you would not qualify for a zero down payment program.
The information provided is not enough to determine if you would qualify for aloan. As far as the down payment, deferred down payments (30 days) would have to be disclosed on the finance contract to comply with the Truth in Lending Act. If it is not it is considered an attempt to deceive the lender. Most lenders to not allow deferred down payments. Based on the information you provided, I would guess that you would not qualify for a zero down payment program.
"Hi, I have a bit of a dilemma. I have a 2002 Dodge Neon that is financed. I owe about 11,000 on it. I was a teen who really needed a car and I got "suckered." I got this car in March 2004. What I want to know is, is there a way for me to obtain a new loan on a car and get rid of my existing loan. I have heard of many different methods for this. One that I have heard of is that the new loan company subtracts the value of the car from the balance and add the remainder to the new loan and payments be made accordingly. I have heard of other methods, but do not understand them enough to explain them. I really want another car. Please respond with some information. Thank you."
Answer
What you have is negative equity. A large number of car buyers owe more on their trade-ins than the cars are worth, making it tough for car dealers, and expensive for buyers, to finance new purchases. To roll $5,000 or $6,000 negative equity into a new car, it would have to be a very expensive car or truck, and even then you would have to make the income to finance that amount of money with a great credit rating. It usually takes around 3 years of car payments just to get even with what you owe and what the car is actually worth. So unless you have a very large down payment I would have to say don't do it. Keep paying and even doubling up on car payments until you get out of that situation.
What you have is negative equity. A large number of car buyers owe more on their trade-ins than the cars are worth, making it tough for car dealers, and expensive for buyers, to finance new purchases. To roll $5,000 or $6,000 negative equity into a new car, it would have to be a very expensive car or truck, and even then you would have to make the income to finance that amount of money with a great credit rating. It usually takes around 3 years of car payments just to get even with what you owe and what the car is actually worth. So unless you have a very large down payment I would have to say don't do it. Keep paying and even doubling up on car payments until you get out of that situation.