Credit Doctor
I will make the credit score system work for you! - Eddie Laponsie
Credit Score Myths
There is only one credit score system
This is not factual at all. There are close to 100 different scoring models that exist. Most of these models are not viewed or looked at very often. However, there are 28 current credit scores that you may see. With the vantage version that has now come out you now have 29. If you choose to use a company like Credit Karma to view your score, it is important to find out what model their information is based on.
Your credit score will be the same no matter where you get it
Your most accurate information will come from the credit bureaus. The best recommendation is for you to monitor credit scores through them. Experian, Equifax and Transunion will have fact finding pages that explain each model they use and the difference between each model. This information will help you understand how to better manage your credit score.
You don’t know what model financial institutions are using
You also may want to ask the financial institution you are seeking a loan from, what model they are using. If you know all your scores you may be able to match this up to the right lending institution for the best rate available.
How soon after filing a bankruptcy can I buy a car?
The day the bankruptcy is discharged, you qualify for a auto loan. Most lenders prefer to grant auto loans immediately after discharge. They view this as the best time to grant a loan simply because at this time you have no obligated debt. Simply put no debt creates the best option for you to complete this obligation.
Can I buy a car before my chapter 7 is discharged?
Yes you can. There are a limited amount of lenders that will approve an auto loan after the hearing of creditors. This may be a good option for you if you are returning your current auto loan to the lender as part of your bankruptcy. In many cases the car has to be returned before discharge leaving you without a car. If this is the case we have options for you to consider.
How high will the interest rate be?
This is a tough question to answer. Rates can be as low as 3.99 percent. In the case of a bankruptcy lenders use a scoring model called ” fair isaacs”. This scoring model takes into account other criteria such as, job time, home time, and current debt ratio’s. With this many times you may have a low credit score but a high fair isaacs score and therefore qualify for a great rate. There are also options you can explore that may actually increase your credit score. Federal regulations grant you certain rights regarding your credit score that can increase the score. For more information on this please call us.
Can I buy a new auto or is a used car the only option?
It makes no difference to the lender if it is a new car or a used car. Some lenders prefer new over used and will often have incentivized programs for this. Others will prefer to finance pre owned automobiles. Ultimately it will be up to you and the type of payment you would prefer and what your current income will qualify for.
Should I wait to buy a car for 2 to 3 years in order to raise my credit scores thru other options?
The quick answer to this is no. A credit score is created thru a complicated algorithm. To help you best understand this algorithm takes into account the most recent credit you may have. The quicker you add credit to your credit file the quicker the credit score will rise. In the majority of cases your credit score will be higher at the time of discharge than it will be 2 to 3 years later. For a more detailed explanation please do not hesitate to call us.
If I buy a car now, can I refinance it later to lower the interest rate?
Yes, you can. We counsel you on how to increase your credit score quickly and when to seek out refinancing the auto loan. Our goal is to help you rebuild you credit history quickly.
Can you help me refinance the auto loan?
Yes and we are glad to assist you with this. We know your history and because of this we can use or relationships with the lenders to help you.
Why should I buy from you?
In our store we have over 50 years of experience with helping people who have challenged credit. We have programs specifically designed to address these needs. Plus you are dealing with people who have been thru the same tough situations and have overcome bad credit obstacles. With us we have the real life experiences to help you and the relationships with lending institutions you will need. We sell you not your credit score.
Credit Doctor
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