Yes you can buy a car if you had a repo over a year ago. It is recommended that you hold off getting an auto loan for 6 to 12 months after repossession has occurred to give you time to begin re-establishing your credit. Here are some tips to help you get into your next car.
First, begin rebuilding your credit as quickly as possible after your repossession. Obtain a copy of your credit report from the 3 credit bureaus (Experian, Equifax and TransUnion) and check for any inaccuracies. If you find mistakes on your credit report, have them removed by following the instructions on each of the credit bureaus websites.
Next, do what you can to pay off anything possible on your credit report that has outstanding balances. Try and pay down your credit cards starting with the highest interest rate first. Once that one has been paid off, go to the next highest interest rate and so on. Once the cards are paid in full, call the credit card company and ask that they close the account. This will free up your credit limit.
Make sure that you pay all your bills on time during the 6 to 12 month waiting period. It will also help your credit report by avoiding any missed or late payments.
Look at your monthly expenses and see if there are ways you can skim back your monthly budget. Consider going out to the movies less often and rent a movie instead. Don't buy your lunch every day, consider making your lunch at home and take it with you. Put the extra cash in a savings account. Every extra dollar you can tuck away will help you to build cash that you can use for a down payment towards your car.
Consider a co-signer to help you get into your next car. This is someone who is close to you and will sign the car loan to help you buy a car. The right person to co-sign a loan with you should have a high credit score and plenty of credit availability on their credit report. This person assumes legal responsibility for the loan so the two of you will have to give this much thought before signing on the dotted line.
When you do go to buy a car after repossession you may have to show some tenacity. Not all lenders will work with you so you may have to try several sources to obtain a loan for your next car.
Expect the interest rates to be higher and more loan fees to be charged. Knowing what is in front of you should help you get a car after your repossession and give you a clean, fresh start.
By Mike Reitz
First, begin rebuilding your credit as quickly as possible after your repossession. Obtain a copy of your credit report from the 3 credit bureaus (Experian, Equifax and TransUnion) and check for any inaccuracies. If you find mistakes on your credit report, have them removed by following the instructions on each of the credit bureaus websites.
Next, do what you can to pay off anything possible on your credit report that has outstanding balances. Try and pay down your credit cards starting with the highest interest rate first. Once that one has been paid off, go to the next highest interest rate and so on. Once the cards are paid in full, call the credit card company and ask that they close the account. This will free up your credit limit.
Make sure that you pay all your bills on time during the 6 to 12 month waiting period. It will also help your credit report by avoiding any missed or late payments.
Look at your monthly expenses and see if there are ways you can skim back your monthly budget. Consider going out to the movies less often and rent a movie instead. Don't buy your lunch every day, consider making your lunch at home and take it with you. Put the extra cash in a savings account. Every extra dollar you can tuck away will help you to build cash that you can use for a down payment towards your car.
Consider a co-signer to help you get into your next car. This is someone who is close to you and will sign the car loan to help you buy a car. The right person to co-sign a loan with you should have a high credit score and plenty of credit availability on their credit report. This person assumes legal responsibility for the loan so the two of you will have to give this much thought before signing on the dotted line.
When you do go to buy a car after repossession you may have to show some tenacity. Not all lenders will work with you so you may have to try several sources to obtain a loan for your next car.
Expect the interest rates to be higher and more loan fees to be charged. Knowing what is in front of you should help you get a car after your repossession and give you a clean, fresh start.
By Mike Reitz
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