Tips On How To Keep Your Car From Repossession & How to Avoid the Repo Man

tips on how to keep your car from repossession

Repossession is scary, and finding accurate information isn’t always the easiest. In today’s article, we are going to reference and paraphrase some of the tips on how to keep your car from repossession in the NCL Consumer Debt advice series. By the end of today’s article, we hope that you feel more equipped to handle this not-so-fun situation.

How Repossession Happens

When you buy a car on credit, you almost always end up putting the car up as collateral for the loan. From time to time, a consumer will also use their car as the collateral for an unrelated small loan. These are called auto pawn loans or high-cost auto title loans.

If you get behind on payments or violate the terms of your agreement, you put yourself at risk of repossession. Even one or two missed car payments can put you in serious danger.

If this applies to you, keep reading. Here are some tips on how to keep your car from repossession.

1. Keep Your Payments Current

Your car payments should be a priority over other monthly bills. When deciding between, credit card debts, electrical bills or your car payment, remember what you have to lose. If you miss only a few payments for your car, you are at risk.

2. Keep the Damage Insurance Current Too

If you miss your insurance payments your creditor might replace your insurance with a much more expensive option. This will increase your monthly car payments.

3. Figure Out What Add-Ons You Don’t Need and Cancel Them

When you first purchased your car, you may have added unneeded insurance products. Some of them are worth paying for, but it’s unlikely you need them all. Find the add-ons that are unnecessary and cancel them with your insurance dealer.

4. Do a Bit Of Negotiation With the Creditor

Your creditor might allow you to postpone your payment. Try to make an agreement. If you succeed, make sure you have it in writing to avoid any disputes.

5. Figure Out If You Can Cure the Default

Some states grant their citizens a right to a cure. In other words, you may be able to pay for your late payments before repossession. If you do get a second chance, make sure you pay the late payments before the due date.

6. If all else fails, sell the car.

Sometimes you might be out of options, and the only thing you can do is sell your car. This option is better than repossession because you’ll be able to sell your car at a higher price. You also avoid a number of additional fees.

We know that facing a potential repossession feels scary. You may not know what to do and may feel ill-equipped to negotiate your way out of the situation. These tips on how to keep your car from repossession will allow you to breath easy. However, if you feel anxious or insecure about your ability to keep your car from repossession and avoid the Repo Man, give us a call today!

Related:

The Link Between Credit Score and Car Insurance

What Happens To Your Credit When You Break A Car Lease?

My Car Was Repossessed: What Are My Rights Against The Creditor?

my car was repossessed

If your car has just been repossessed the first thing you should be asking yourself is, ‘What are my rights against the creditor?’

Exploring the rules is undoubtedly the best way forward. It will give you the best chance of saving the most amount of money and potentially get your vehicle back.

But what are your rights? Here we take you through six you should know about.

1. Save your personal items

With your car taken by the creditors, you will certainly not want to be losing out financially with lost cell phones or anything similar. It is against the law for creditors to keep your personal property after it has been repossessed. Make sure to demand your items back as soon as possible, both by phone and in writing. Make sure to do that as quickly as possible before it is “misplaced”.

2. Reinstate the contract

Many states allow consumers to reinstate the contract under certain circumstances. Reinstatement will mean you get the vehicle back by paying the back-due payments (not the full debt). However, do watch out for extra costs you might have to pay such as storage charges. Speed is essential on this one. In most of the states that allow reinstatement, you have just a few weeks after repossession to take this option.

3. Redeem the vehicle

You can reclaim your vehicle from creditors if you redeem it — paying off the full amount owed plus expenses. Under the law, the creditor must tell you the date of the car’s sale and give you a telephone number. Like reinstatement, you should find out the cost of the vehicle as soon as possible and act fast. Once the car is sold to someone else, it belongs to them.

4. Haggle with the creditor

You have every right to negotiate with the creditor in an attempt to get your car back. You might be able to get your car back quickly if your car has little value on the market.

5. File for bankruptcy

Once your car has been repossessed you do have the option of getting it returned to you by filing for bankruptcy. However, you will need to this before the creditor sells it, so time is of the essence.

You will need to make payment arrangements under either chapter 7 or 13 bankruptcy if you want to keep the car long term.

If you take the chapter 7 option, you have to pay the creditor either the full remaining balance of the debt or the car’s value — whichever is less. This will need to be paid in installments or all at once depending on your creditor.

If you take chapter 13 bankruptcy then there are several options available to you. However, we think the best way forward is to pay off the car loan in monthly installments.

These payments can be lower than your car loan payments and could help you out of financial difficulties.

6. Take legal action

If you feel like your car was taken illegally by the creditors then you can file a lawsuit to get the car returned and claim damages. However, you will need to hire an attorney, which could be expensive.

Don’t panic if your car is repossessed by creditors. These six steps will put you on the right path to reclaiming your vehicle. Contact us today so we can dive into your specific situation and begin planning a way to help you escape this frustration.

Credit Score of 588: What You Need to Know

Credit Score of 588: What You Need to Know

So, you’ve got a credit score of 588. Now you’re left wondering if it’s good or bad. Lower numbers communicate to lenders that you’re a risky investment. This informs whether or not they approve you for loans or credit cards.

If your score falls below 619, FICO says you have “poor” credit. You’ll receive high-interest rates if approved at all. The best option? Understand the situation and work to improve it.

Credit Score of 588: Home Loans

Is it possible?

PROBABLY NOT — You need a credit score above 620 to secure a reasonable mortgage.

If you have a credit score of 588, you likely won’t get approved by most lenders. On the chance you do, expect to pay interest rates as high as 5-6%. Loans through the FHA (Federal Housing Administration) are your best bet, but it’s still a long shot.

Credit Score of 588: Car Loans

Is it possible?

YES — You can definitely buy a car with this score, but you’re going to pay for it.

Lenders may approve your application, but it’ll be accompanied by a high-interest rate. Honestly, it’s a good idea to wait on these loans and focus on raising your score.

Just 70 points make a huge difference…

In 2018, the average amount borrowed for an auto loan is $31,099. However, that number is just one half of the equation. To give you a better idea of how a high-interest rate affects you, let’s look at an example.

Below, you’ll see the 3 most common auto loans: 60-month, 48-month, and 36-month. For each type, there’s a comparison between someone with a credit score of 588 and 648.

Loan Type Credit Score Annual Rate Monthly Payment Total Added Cost
36-month new auto 588 15.867% $1,091 $2,986
648 10.334% $1,008
48-month new auto 588 15.865% $879 $4,080
648 10.364% $794
60-month new auto 588 15.938% $755 $5,266
648 10.438% $667

 

Credit Score of 588: Credit Cards

What’s the best credit card for a score of 588?

OPTIONS ARE OUT THERE — It’s difficult to get approved with a low score, but possible.

At 588, credit card companies see that you’re just shy of an average score. For this reason, you may be able to qualify for both secure AND unsecured cards.

Here are a few recommendations:

Card Name Annual Rate Annual Fee Secured/Unsecured
Credit One Bank Visa 17.49% – 25.49% (Variable) $99 Unsecured
Milestone Gold Mastercard 23.90% $35-$99 Unsecured
Open Sky Secured Visa 18.64% (Variable) $35 Secured
Discover it® Secured Card 24.49% (Variable) $0 Secured

 

How To Improve A Credit Score of 588

Improving a credit score of 588 to something over 620 should become the main priority. Good credit makes so many things easier, and a bit of diligence will raise your score in no time.

For many, the process may feel overwhelming. Here are a few tips for getting started…

  1. Be smart when shopping for a loan. Don’t apply for several loans or credit card in a row, as this can hurt your score. Also, avoid getting in over your head with how much you owe.
  2. Payback your credit on time. Lenders like knowing that they’re going to get their money on-time, every time. If you show your ability to pay, the score will rise.
  3. Find someone to help you. If small improvements aren’t raising your score fast enough, consider getting some professional help from a credit repair company like Go Clean Credit.

You can do it!

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs put you back on the path to financial success.  Contact Go Clean Credit today!

Credit Score of 598: How Your Life Is Impacted Through Car, Home Loans and Credit Cards

credit score of 598

Having a credit score of 598 means you have quite a bit of work to do. You’re classified in the lowest category and are likely finding it difficult to get approved at reasonable interest rates. Sometimes people with this score have a difficult time getting approved at all.

We know this process is a struggle, and we’re here to help. In today’s article, we’ll walk you through a variety of ways your life is impacted by a credit score of 598.

1. Home Loans

Those with a low score are going to pay high-interest rates. Home loans are one of the best examples of how this negatively impacts your financial life.

Let’s say you buy a cheaper home because you can’t afford anything more yet. Unfortunately, you’re also struggling with a credit score of 598. By the time you pay off the loan, your payable interest may add up to more than more than half the original payment.

For the first time home buyer with this score, you will definitely be fighting an uphill battle. In fact, most applications will get automatically declined because you don’t meet the typical 620 threshold.

Increasing your score is going to be your best bet to get a decent home loan. It may take a few years to correct it and it may be frustrating, but bringing your credit score up by even 100 points will put you in an entirely different interest rate category.

2. Auto Loans

A car loan will be easier to get approved, but you’re still going to face plenty of high-interest rate challenges. Let’s say you want a $27,000, 60-month loan. If you have a credit score of 598, you’ll find an average APR of up to 16% in interest.

Here, again, it’s probably best to wait until you’ve built a more trustworthy credit report. After all, there’s no reason to pay enormous interest fees if you’re able to wait on the car.

If it’s something you need right now, however, getting approved is possible. Plenty of financing companies and used car dealerships will work with you. Just know going into it that the loan approval will come with a hefty interest rate too.

 

3. Credit Cards

Credit cards are the easiest to find on the list. You’ll still have suboptimal choices and high-interest rates. In fact, you may not even get approved for an unsecured card. In which case, you’ll need a secure card and be ready for an upfront cash investment.

If all you can get is a secured credit card, get one. Then practice using credit responsibly, and you’ll find your score increasing over time.

For those who used to have good credit, but now struggle with a poor score, consider enlisting the help of a credit repair agency. These tips are great for establishing credit, but there’s often more to be done for those who lowered their scores.

Contact Go Clean Credit to learn more about how you can clean up your score »

How Many Points Does Your Credit Score Go Down When You Check It?

how many points does your credit score go down when you check it

Are you concerned about maintaining a healthy financial life? Everybody knows the importance of a high credit score. It’s like the ultimate game of adulthood. And it leaves you asking questions like, “How many points does your credit score go down when you check it?”

This is a smart strategy. After all, so many small actions trigger a score fluctuation. The last thing you want is to get declined for an important loan because of seemingly inconsequential errors. Cars, credit cards, home loans, and even the department store down the road, will check your credit when you apply. And each of these actions affects your scores.

In today’s post, we’re going to review some of the aspects of credit checks and uncover how many points does your credit score go down when you check it.

But first, we need to know about hard and soft inquiries. Let’s dive in…

The Difference Between Hard and Soft Inquiries

Soft inquiries don’t matter. You can forget they even exist if you want. They don’t hurt your credit card score at all.

Although these inquiries probably show up on your credit report, the lenders can’t see them. Soft inquiries don’t have anything to do with your credit card score. So, if you recently experienced a sudden credit card score drop, you can’t blame the soft inquiries.

Hard inquiries are the real punisher. They can really harm your credit card score if you aren’t careful. But let’s not get too panicked — yet.

Points You’ll Go Down for a Hard Inquiry

Yes, hard inquiries can negatively impact your credit card score. BUT — you shouldn’t see it go down more than five points. The real danger comes when you go on an application spree.

So, how many points does your credit score go down when you check it? Each application will cost you five points off your credit score. The solution? Don’t aimlessly apply for lines of credit.

But what about if you aren’t applying for loans… What if you just want to check your own credit score? Well, good news…

Checking Your OWN Credit Score is a Soft Inquiry

Most applications for a line of credit hit on your report as a hard inquiry. Yes, you read that right! Although this might not always be the case, it’s the typical experience.

Luckily, keeping track of your credit score won’t cost you a thing!

Checking your OWN credit score is a soft inquiry. That means it won’t negatively affect your score at all — which is great news! After all, the only way to spot a need for credit repair or growth is by knowing your report.

HELP! I Went on an Application Spree!!!

Earlier in this article, we mentioned an application spree. This is where an (often unknowing) consumer applies for SEVERAL lines of credit over the course of a month or so.

The result? An AWFUL surprise next time they see their credit report.

Don’t panic — there’s hope. If you’re experiencing the consequences of too many hard inquiries, we’re here to help. Contact us today so we can dive into your specific situation and begin planning a way to help you escape this frustration.

Credit Repair Software Reviews: Top 5 Software Solutions to Fix Your Credit

credit repair software reviews

A credit repair software works to improve your credit score. However, it’s hard to narrow down your options because many companies offer these services. For today’s article, we dug through credit repair software reviews to bring you these top five solutions you can trust.

This technology monitors and fixes errors on your report. As a result, your credit score increase, which makes it easier for you to access loans and mortgages. A credit repair software is easy to use, cheap, efficient, and it allows you to monitor your credit report at the comfort of your home.

Many scams and useless software exists. It’s important to find a reputable company. Or, when in doubt, choose a credit repair agency instead to take care of the heavy lifting for you.

Now, onto the top five picks for credit repair software in 2018…

1. Turbo Credit: Consumer Edition

It removes negative items and false information appearing on your credit report, fights identity theft, and has a TurboStop to legally stops calls from creditors.

“I wanted one that provides information on exactly what one needs to do to lift FICO scores, a breakdown of what banks really look at, and an easy way to dispute and remove errors off a credit report. This software had all these answers and more…” (Source)

Plus, there’s a 30-day money-back guarantee.

Learn more about Turbo Credit: Consumer Edition »

2. 700 Credit Repairs

They offer two primary services: digital credit disputer (software only), and digital score enhancer (software, online workbook, score analyzer and many more).

Where this software really stands apart is in its automated technology.

“Just want to give a huge THANK YOU to 700 Credit Repair!!!!! They repaired our credit to where we were able to get approved for our dream HOME! Thank you so much!!..” (Source)

Learn more about 700 Credit Repairs »

3. TurnScor

Their software works to improve bad credit scores, while their resources focus on training customers in gaining a deeper knowledge of finances and credit management.

“..I didn’t qualify to purchase because of my credit score. I signed up, used the software, and now I qualify to buy a Harley Davidson and it only took 6 months!”…” (Source)

Learn more about TurnScor »

4. Credit Aid

It repairs and improves credit score, removes negative items on your credit report, and even disputes bankruptcies. There’s also a compelling 100% money-back guarantee if your credit score doesn’t improve.

“I LOVE this Software! Prior to using it, I spent quite a bit of money on an expensive ‘credit repair company’ that did NOTHING but take my money! Credit-Aid Software has made it very easy for me to repair my own credit…” (Source)

Learn more about Credit Aid »

5. Credit Detailer

This is another provider focused on providing a solid software AND ongoing training to help their customers get better at finances. It’s easy to use and very affordable compared to other software. Plus, you can buy both Spanish and English versions.

“I called for help and Ken was just terrific! I started off with the trial version and went for the professional version to start my business and have been working smoothly ever since..”- Trish

Learn more about Credit Detailer »

How Many Points Does a Credit Score Go Up When a Collection is Removed?

how many points does credit score go up when a collection is removed

How many points does a credit score go up when a collection is removed? We know that even small oversights can cause huge damage to your report. So, it’s understandable that you’d be concerned.

And, without trying to be too ominous, you should be concerned.

High credit scores provide access to bank loans, higher mortgages, credit cards, and better interest rate. Some employer even run credit checks to vet potential employees.

As you can imagine, it’s important to know your credit score. In a survey from LendEDU, 25% of millennials don’t even know what a credit score is — 5% of them even believe it’s you’re waiting list spot for a credit card.

So, it’s safe to say that we’re getting into a bit of technical territory as we jump into collections. Let’s take a minute to review the basics.

What is a Collection Account?

When you don’t pay your debts, the company sends it to a collection agency. This can apply to credit cards, but also with medical bills or department store loans. The original company chooses to write off the debt as a loss, then sell it to the collection agency.

Lenders sometimes have unique policies, but as a general rule, accounts enter collections after 180-days of non-payment. At this point, the agency who purchased your debt from the lender will report the “collection” status of your account to the credit bureau.

How Does a Collection Account Affect My Credit?

Once an account enters collections, it will harm your credit score AND credit history. If at all possible, avoid letting an account ever enter this status because of the harsh consequences.

First, the instance stays on your credit report for 7 years from your first delinquency. That means creditors will see you as risky, and it will be difficult to increase your credit score during this time. It’s also going to significantly drop your score. If you have a score of 700, for example, expect a drop of around 100 points.

Should I Pay Off My Collection Debt?

If possible, negotiate a way to get the collection DELETED from your report. Sometimes agencies will do this if you agree to pay back the debt. Be careful when going this route, and seek out a bit of professional advice to avoid making matters worse.

Here are the basic steps for paying off a collection debt…

  1. Send a written request for settling the debt in exchange for deleting it from the report.
  2. Wait for a written response from the collector before taking any action.

You’re going to wait a while between step one and two, which will give you plenty of time to dive into the gritty details of what next. Know that the more of your debt you’re willing to pay, the greater chance you have of them removing it from your report.

How Many Points Does a Credit Score Go Up When a Collection is Removed?

Now that you have a solid understanding of collection accounts, the answer to how many points does credit score go up when a collection is removed becomes quite simple. After all, if the collection knocked your 710 score down by 100 points, you can expect to see many of those points return it’s been removed from your report.

It’s nearly impossible to give you a specific number because every report is unique. Instead, let’s move from this blog to an email or phone call and discuss your situation more…

You can reach out via email, or give us a call » 1-866-991-4885

If you’re struggling with debt and facing the credit consequences, consider getting professional help. Our team can guide you through the process of cleaning up your credit.

Private Student Loan Protections

private student loan

So, you’ve taken out a private student loan to pay for your college education. You are one of the thousands of students who have also chosen to finance their education.

You might have a plan for how you’ll tackle the threat of student debt; however, life is unpredictable which can make managing your private student loan difficult. Federal protections have made dealing with unplanned circumstances easier. Find out if you can take advantage of these protections.

Default

Handling bills and loan payments are challenging and defaulting on your loan could be harmful to your credit report, but consumer rights may protect you.

The Fair Credit Reporting Act gives borrowers the right to exclude a private student loan default from their consumer’s report. The borrower must successfully complete a loan rehabilitation program before they can request the exclusion.

Why is this important?

Consumer reports are reviewed when you apply for auto loans, submit job applications- even when you apply to rent an apartment! So, if you want to get out of mom and dad’s house, check with your lender to see if they offer a loan rehabilitation program.

Bankruptcy

Your co-signer tells you that they filed for bankruptcy. What happens after that?

The private student loan lender relies on the co-signer to pay the loan debt if the borrower defaults. If the cosigner declares bankruptcy, the lender could default your loan even if you are current on payments.The Truth in Lending Act protects borrowers against lender’s defaulting your loan if the co-signer is unable to fulfill their duty.

Unfortunately, this protection only applies to borrowers who extend their loan after November 20, 2018. The Lending Act protection does not extend to private student loans combined with other private student loans. Loans whose co-signer is the borrower’s spouse are not protected by the act.

So, if your co-signer tells you that they filed for bankruptcy, take relief in the fact that your loan is still secure.

Death

What happens to your private student loan if you or your co-signer pass away? It’s a question that most people don’t think to ask, but federal regulations have this problem answered for you.

Similar to the bankruptcy regulation, the Truth Lending Acts barred lenders from defaulting or accelerating payments if the cosigner passes away. Cosigners are also relieved of loan obligations upon the borrower’s death.

You may not have thought about how a death could affect your loan, but protections in place already have you covered!

Conclusion

Private student loans are a strategic way to fund your education!

Protections established by the Fair Credit Reporting Act and Truth in Lending Act can alleviate some of the stress that comes with private student loans. These acts allow borrowers to exclude negative information from their credit loan report, ensuring that loaners do not accelerate or default loan payments, and protecting co-signers.

How Many Points Does a Mortgage Inquiry Affect Your Credit Score

How Many Points Does A Mortgage Inquiry Affect Your Credit Score

You’re looking into a mortgage so that you can buy a home. Congratulations! You’ve worked up until this point making sure that your credit is what it needs to be to get a loan, but now you’re worried that shopping around may decrease your score and you’re wondering how many points a mortgage inquiry will affect your score.

It is true that hard inquiries will decrease your score, but you can rest easy knowing the impact will largely be marginal. In today’s post, you’ll learn everything you need to know about mortgage inquiries. Spoiler alert: There’s not much to worry about.

1. Time Frame

Contrary to popular belief, the credit system is not trying to work against you. They understand that shopping around for the best rate is in your best interest, and they aren’t looking to punish you for that. For that reason, inquiries into loans like mortgages and automobiles made within a certain time frame (anywhere from 2 to 6 weeks) will actually count as one inquiry.

So, applying for many loan quotes will not hurt your credit as long as you do it fast. And that will save you time and money in the long run!

2. 30-Day Delay

Chances are, if you’re actually putting in hard inquiries, you are ready to buy soon.

Great news…

There is a 30-day delay between when the mortgage loan is quoted and when it actually hits your credit report. So, those home loans you are applying for aren’t even visible to lenders.

This means that they aren’t seeing the multiple applications you sent in. No reason to worry about lenders subjectively declining you either. They won’t even be able to see it until 30 days after it’s all said and done.

3. How Much Does An Inquiry Affect a Score Anyway?

As with most things credit, it depends. There are many factors and the more storied your credit history, the less any single change will affect it at all. Generally though, even with newer or more sparse histories, a single inquiry wouldn’t be much at all, maybe five to ten points.

Since credit card inquiries do not get lumped together into one, applying for multiple credit cards in any time period would continue to affect your score and the amount of damage it does would compound with each new inquiry.

But with mortgage inquiries, you won’t have this problem. And you should see very minimal damage to your perfectly polished credit score.

Conclusion

You’ve worked hard to get yourself into the position you’re in. Buying a house is an exciting step and you don’t need that feeling to be weighed down by additional worry about every factor of applying for your loan or a few credit points.

Shop around if you’d like and find that loan that works best for your individual needs.

In fact, this is likely to increase your score in the long run, because you won’t find yourself in a loan that you cannot repay because you took the first one offered to you.

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs put you back on the path to financial success.  Contact Go Clean Credit today!

Credit Score of 524: Loans, Improvement Tips & More

Having a credit score of 524 means that you have some work to do. Ranked squarely in the lowest tier of scores, you are facing elevated interest rates on any loans and credit you are able to obtain—or rejection from them all together.

There is confusion on how credit scores actually affect car and home loans and credit cards. Will the interest rates be too high for me? Will I just be rejected? Luckily, it’s all answered below.

1. Home Loans

For a first time home buyer with a credit score of 524, you will most definitely be fighting an uphill battle. The majority of loans will reject you outright as your score is lower than their usual threshold of 620 by almost 100 points.

If you do find a loan that is willing to take you, the lower your score, the more that your interest rate skyrockets. With a score that low, the amount of interest you pay on the house could be upwards of half the principal loan, a lofty price to pay for poor credit.

Increasing your score is going to be your best bet to getting a decent home loan. It may take a couple years to fix and it will be frustrating, but even 100 more points on your credit score can improve your chances drastically and knock an interest percentage upwards of 2%!

2. Auto Loans

Car loans are similar in terms of interest rates and possible rejection through conventional means, but a car loan will be at least easier to find. The rates may once again be too high for you to consider this a viable choice, though.

Using the average $27,000 dollars for a car loan and a 60-month loan, a score of 524 could land you an average APR of upwards of nearly 16% and an interest over the life of loan of nearly $12,000 extra dollars!

Once again, it is in your best interest to improve your score or you may fall victim to predatory lending.

3. Credit Cards

Credit cards are not going to be easy to come by, either. This is the unfortunate fact of having a low score. Honestly, obtaining an unsecured credit card will probably be impossible. However, unsecured credit cards, or ones where you must make a deposit to obtain, will be beneficial to improving your score.

Your score may even jump by opening the card. And if you pay off your debt on time every month, the number will continue to climb.

So What To Do?

You will need to improve your score to be put into a more comfortable position. You may be able to get loans, but the interest rates will be high and could nearly double your loan… Start with a secured credit card and work your way up and pay on time every month. You’ll be glad you did.

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs put you back on the path to financial success.  Contact Go Clean Credit today!