Securing a Car Loan with Multiple Repossessions Getting an auto loan after going through repossessions is hard enough as it is, and things are even worse if you have more than one repo on your credit report. Q: What options do you have and what should you be examining in this context?
The Effects of Repossession
Credit Score Consequences
It has the power to drop your score more than 100 points This negative mark can stay on your credit report for seven or More years hindering you from getting loans12. The more repossessions, the harder it is to get financing from lenders.
Lender Perspectives
A single individual who has lost their possessions multiple times can be viewed as high-risk by most traditional lenders. However, subprime lenders may remain as an option with the stipulation that they are likely to seek much higher interest rates due to your credit profile >
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Financing Options
Subprime Lenders
Sub prime lenders could also work with you however they prefer to see only one repossession that is over a year old as well. The odds of any one being approved for two or more is slim8
Alternative Strategies
Offer a sizeable down payment: Giving a substantial amount for your down allows you to make even the most attractive deals. This decreases the risk of default to lender, and is an exhibition of financial responsibility45.
Reestablishing Credit: An emphasis should instead be placed on repaying old debts and making it a point to pay current bills on time, in an attempt…1 Taking this in advance can increase your government with moneylenders.
Look at Cash Deals: If you can afford to purchase a relatively inexpensive used car without financing, it may be another way of steering clear from loans for the time being, and working on rebuilding your credit2.
Conclusion
Although getting a car loan with multiple repossessions may be difficult, it probably is not impossible. Knowing the effects of your credit history, and considering a few financing possibilities can increase chances at being back on road. In a way, looking after your finances is the first step to future prospects.
