Frequently Asked Questions
Question: "We had a discharged bankruptcy last August. How to
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
auto loan application will be
processed by a dealership in your area that specializes in
auto 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.
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?"
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.
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 an
auto loan? I do not want to pull my
credit report if not necessary."
Answer: The authorized
car 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 also 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 credit report. If your score is
less than 525 (average), however, your auto loan request would be
limited to these lenders.
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?"
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.
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 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 dealerships 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 dealerships that they were receiving far
to many telemarketing calls from online marketing companies.
Question: "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
though every dealer. Our dealer network is limited to maintain the
quality of our service. 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.
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?"
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 direct 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.
Question: "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 indirect 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 recommend.
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."
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
parent with fair credit was listed as a co-buyer you should qualify
for a zero down program.
Question: "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 a down payment if you
are purchasing a new car with a rebate or you have a trade in,
regardless of it's condition.
Question: "My credit score is 534 with a voluntary repo. I
will have a co signer with 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 a loan. As far a the down payment, differed
down payments (30 days) 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 do not
allow differed down payments. Based on the information you provided
I would guess that you would not qualify for a zero down payment
program.
