Can I get a car loan after a repossession?

Can I Get a Car Loan After a Repossession?

Auto loans with prior repossession Green Bay

A car can be repossessed for several reasons. For example if it was collateral for a loan, or the owner was unable to pay financing charges on its loan and the bank or original owner took the vehicle back. Either way, the experience of having a repossession will leave a mark on your credit score. But if you’ve ever wondered “Can I get a car loan after a repossession?” we at Broadway Credit can tell you that yes you can and we are here to help.

A repossession is bad for your credit score because it usually indicates that the payee was not able to make financial payments at some point. Many financial institutions will hesitate to lend to someone with a proven history of not making important payments. But that doesn’t mean that you can’t get a reliable and comfortable pre-owned vehicle and build your credit at the same time. The key to successfully getting a loan for a new vehicle is to be prepared, and here are some steps to keep in mind.

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Couple looking for a new car

Know your credit score

Anytime you are going in to request an auto loan it’s a good idea to know your credit score so you know exactly how much or how little credit you have to work with when finding a new vehicle. There are several places where you can get a fee credit report.

Aim for practical not flashy

While it would be really cool if everyone could have a cherry-red Mustang (or their muscle-car of choice), that’s not exactly a practical vehicle for most of us and taking out too-large of a loan on a new car could hurt your credit score even more. The most important thing is to be able to make the payments on any loan you take out.

Have your paperwork ready

Sometimes paperwork can be a pain, but when you are looking into an auto loan after a prior repossession it’s smart to have as much information on-hand as possible so you can provide the dealers with quick answers for some basic questions. Different lenders may have different requirements, but you should have:

  • Recent paystub/proof of employment
  • Proof of insurance
  • Valid drivers license

A current utility bill, bank statement, or even federal income tax return may be requested as well. It’s a lot of stuff, but having all these documents on hand will show that you are organized and have your finances together enough to start looking into a loan. Whatever you do, be sure that any information you provide is accurate because it will be checked.

We wish you good luck on your car financing journey, and hope we can help you out! Contact us at Broadway Auto Credit or stop by our 7th Street location on the west side of Green Bay in and we can help you get on the way to a new vehicle and a brighter credit future.