5 Tips for Getting Financing After Repossession
While vehicle repossession may feel like the worst thing that could happen, there is hope. The repo puts you in a credit category called subprime and over the past two years, car loans in this category have steadily risen. And many used car dealerships offer different types of instant approval auto loans, including financing with repossession. There’s no quick fix for repairing a credit slump, but the following 5 tips can get you on the right path.
1) Establish Your Credit Standing
Your credit may not be as bad as you think, but only a copy of your credit report and credit score can tell you for sure. Outlets like Experian, Equifax and TransUnion are good places to start. Since reports vary, get your score from all three to be safe. But remember: they can have errors, so check carefully and challenge them if you see fit.
2) Fix Whatever’s Fixable
Settle any collection balances you can, and work out arrangements for the ones you can’t. Vow to consistently pay all bills on time, and limit or avoid credit card purchases and borrowing.
3) Save Up a Down Payment
Paying off old debts while saving up for a down payment may seem like an impossible task, but it is a necessary one. Lenders and dealerships that offer buy here pay here financing consider big down payments a good sign that your finances are under control and your odds for approval go up.
4) Be Prepared
Ask ahead of time what documents the dealership requires, and have them organized well in advance. A driver’s license, recent pay stub and proof of insurance will be the minimum, but recent tax returns may also be required.
5) Purchase Within Your Means
A repossession is an overspending reality check, so learn from the mistake and be realistic. Aim for something average-sized and reliable.
Remember: life doesn’t end when your car is repossessed, and with a bit of work you’ll be on your way to guaranteed credit approval for a new vehicle. Cactus Jack’s understands how important and empowering getting back behind the wheel is. That’s why we offer buy here pay here financing on our entire bad credit used car inventory. If you need financing with a repossession in your past, count on Cactus Jack’s. Contact Us with any questions about our instant approval auto loans, or Click Here to view our bad credit used car inventory.