potofgold's Blog

Auto Source Finances Trustees’ can answer a number of questions people often ask relate to credit repair after bankruptcy: I filed for personal bankruptcy in Canada - for how long will it stay on my credit report? Can I somehow repair my credit after filing for bankruptcy? Is it possible to erase bad credit history?

Your credit rating determines whether or not you will be able to get a loan in the future. A bad credit report might mean that you will not be able to get a car loan, mortgage, or debt consolidation loan.

A bad mark on your credit report - such as filing bankruptcy - will (except in very special situations) remain on your credit record a maximum of six years. After that, the information is dropped from your record. Unless it’s a double bankruptcy which will then stay on your credit report for 12 years.

Is credit repair after bankruptcy a possibility or you have to wait the six years to pass for the record to get cleaned? Unfortunately, you can’t totally erase your bad credit,

Because you can’t remove bankruptcy from your report - but there are things that you can do to improve your credit history. Suggestions on how you can repair your bad credit follow.

1. Get a credit report

First, you need to do a credit check on yourself. In most cases you can obtain your own credit report for free, or for a nominal charge. There are two main credit bureaus in Canada:

1. • Equifax 1-800-465-7166
   • Trans Union  1-800-888-4213

1. Review your credit report

Review your credit report for any errors or negative comments.

An error may include a debt that you have already repaid

A negative comment may result from a department store credit card that you stopped using ten years ago, if it had a $10 balance owing, it may still show up on your credit report.

1. Correct any errors on your credit report

If you find an error, contact the credit bureau and offer proof that you do not owe the money. You may need a letter from the creditor indicating the payments were made, or you may provide cancelled cheques to indicate payments were received.

You may also send a letter to the credit bureau explaining your side of the story; your comments can be attached to your credit report.

1. Repair Information on your credit report

If you owe a creditor $10 and they have filed a negative credit report with the credit bureau, repay the creditor and ask the creditor to note on your credit report that the debt has been paid. If a debt legally owes, the debt must be paid or discharged before it can show on your credit report as being paid or discharged.

1. Pay off your Debt

Even if your credit report indicates that you have made all of your regular monthly payments, a potential lender may look unfavourably on high levels of debt.  The solution is to pay off as much of your existing debt as possible before applying for a new loan.

We recommend that you pay off your highest interest debts first, so pay the 18% interest credit card off first, and then repay the 16% interest credit card.

The lower your debt, the easier it will be to obtain a loan. Your monthly household budgeting plan should include specific repayment amounts for each of your debts.

1. Take Some Action

If you have more debt than you can possibly repay, your credit report will only improve by formally dealing with your debts. You may need to file a formal proposal to your creditors, or consider consumer credit counselling and a debt management plan. For professional advice and further assistance, please contact a debt management consultant or a licensed bankruptcy trustee.

To conclude, you can’t erase a bad credit with a personal bankruptcy note on it, but partial credit repair after bankruptcy and credit improvement in general is possible - and it is in your hands. If you want to obtain a car loan you can actually start rebuilding your credit prior to discharge of your bankruptcy.

Auto Source Finance works with VFC who will grant you a car loan even while you’re in bankruptcy. You can start building your new credit right away. You may have to pay a large interest rate in the beginning but your credit is worth the interest. After you have made 10-12 payments on time Auto Source will help you reduce your interest rate to prime lending rates. So if you think you cannot get a Car because you are bankrupt or have no credit or bad credit talk with Auto Source Financial and start building your credit Now!

Bad Credit Car LoanYou’ve just learned that your request for an auto loan with the Bank has been denied. The loan officer explains that the decision has to do with your credit. Banks lend only to prime borrowers; your credit situation places you squarely in non-prime territory.

Non-Prime. You’re not sure exactly what it means, but it sounds like a condemnation that will forever brand you as being somehow deficient to lenders.

However, being deemed Non-Prime doesn’t necessarily mean that your borrowing days are over. It may still be possible for you to get that sought-after car loan.

But first you need to understand the term that defines you. A Non-Prime borrower is one with No Credit or Bad Credit. Each lender has its own definition of what constitutes a Non-Prime borrower, but typically, a credit score of less than 620 lands you in this less-than-desirable category. For more information on credit scores, and what sort of factors cause them to suffer, please see Getting Credit in Canada .

There are four credit grantors specializing in Non-Prime lending who are eager and willing to loan money to those with bad credit. Naturally, though, there’s a catch. The interest rates for Non-Prime borrowers are frequently quite steep — significantly steeper than those paid by their more credit-worthy?

So, now that you understand what your options are here are a few tips:

* Check your credit report. Make sure that everything on your report is accurate; it could be that information has been entered in error, and that your credit history is a lot less blemished than you’ve been led to believe. If you do find information on your report that is inaccurate, you need to address it right away. Contact the credit bureaus in writing, listing your name and address and clearly detailing the nature of the error.

* Access your credit score. For a long time, credit scores were available only to prospective lenders, who used them to evaluate those seeking loans. That has changed; it’s now possible for consumers to access this all-important number. Your score is available online from the credit bureaus: Equifax. If you’ve got bad credit, it’s helpful to know it beforehand. Knowing your credit score will help give you a sense of exactly where you stand in your search for an auto loan.

* Don’t rely on the Dealers. Dealers take a cut of all car financing deals they land; as a result, any loan that they’re able to get you with a bank or financing company is likely to wind up being more costly to you than if you had contacted the lending institution on your own. Ideally, you’ll want to secure your auto loan before setting foot inside the dealership. Auto Source Financial can get you Pre-Qualified for your Vehicle Loan and help you find the Car you’re looking for at a far cheaper price.

* Shop around. Rates will vary from lender to lender; take the time to look around and see what deals are available. Lenders typically define their business according to credit tiers (A, A- and so on.); speak with loan officers regarding how each tier is linked to credit score and interest rate. Ask for a matrix detailing the tiers and their implications; having something in writing from each lender will make it easier to compare your options effectively. If you have a checking account, make sure to include your bank in your search for a loan. Many banks have entire departments dedicated to providing loans to those with flawed credit, and they tend to look more favourably upon applicants who are current clients. Your credit union is also a good place to turn. For years, credit unions have had a reputation of lending only to members with good credit, but that’s begun to change. Many are now beginning to expand their business to include those with less-than-perfect credit.

* Remember that your credit score is malleable and ever-changing. When it comes to your credit history, the ball is entirely in your court. You can improve your bad credit by paying your bills on time, and not overextending yourself when it comes to loans and credit cards. With proper attention paid to the state of your credit, you could conceivably hoist yourself out of Non-Prime territory in as few as two or three years. Going forward, check your credit score at least once annually. You may have to pay more than you’d like for the auto loan you’re about to receive, but in a couple of years, if your credit score has improved, you’ll probably be able to refinance your loan at a much lower rate.

You have probably heard of auto refinance before. Or simply refinance. The term “refinance” actually refers to a financial situation wherein a borrower finds financing to pay off a current loan. Refinance is often put into practice in home buying. In fact, refinancing is one of the most popular methods of getting financing for a home loan.

With auto refinance, the same thing applies. Auto refinance is basically paying off one loan with a new loan. The goal of auto refinance is to allow the borrower to save some money from your monthly loan obligations. And as such, it is one of the best kept secrets in the financing industry. For years now, people have refinancing their homes and saving thousands of dollars. However, the practice of refinancing car loans has yet to be indulged by most. Why? Perhaps the reason is that auto loans generally behave differently from home loans and people are naturally skeptical about new methods. Regardless, auto refinance is still a good choice, provided that the situation is right.
When to get an Auto Refinance Loan

The only way for auto refinance to work is if you get it when the interest rates are low. Mortgage rates tend to move with interest rates. Therefore, if interest rates are low, then it’s likely that mortgage rates are low also. Low mortgage rates typically mean low monthly repayments and this then is the situation you should aim for.

Only few people really understand the time value of money. Keep in mind that the longer you pay for a loan, the bigger amount of money you actually spend for it. Thus, by the end of the loan period, you would have paid more money on interest than on the principal. This is why auto refinance is important for it is one of the few methods that could help you minimize loan costs and maximize your savings.

Who can benefit from Auto Refinance?

Almost anyone with a loan to his name can benefit from auto refinance. Even car buyers with bad credit can obtain auto refinance as a way for them to lower down their APRs. Let’s say, for instance, you make an auto refinance loan for $16,500 on a new Honda Accord. At the end of six months, you agree to pay off the amount at 21% APR. So for a few months, this will be your monthly loan obligation.

Then, you decide to take an auto refinance loan. However, this time, your loan ate is at 6% APR. Your current monthly payment is $446 which gives you total interest charges of $10,283 at the end of your loan period. Your auto refinance loan offers you a monthly payment of $319 with total interest charges of $2,639. Thus, by refinancing, you can save up to $7Free Articles,600.

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ABOUT THE AUTHOR

Tony Forster has a keen interest in living debt free having been “up to his ears” before I realized the need to take control. I am compiling a useful online resource at http://www.loan4payday.info enabling anyone to find the perfect money managment for them.

By Credit Net Finance

If you have less than perfect credit, you may have been tempted by advertisements offering credit repair services. In newspapers, TV, radio, and on the Internet credit repair services claim to be able to remove bankruptcies, create new credit identities, and even erase bad credit. Some, though, may be scams, so before taking up any of those offers, please read Avoiding Scams.

In the Canada, negative information on your credit report is generally reported for six or seven years. Bankruptcy information can be reported for up to 12 years. Default information regarding Canadian insured or guaranteed student loans can be reported for seven years.

If your bad credit record is a result of inaccurate credit reporting, there is good news for you. While nobody can legally remove accurate and timely negative information from a credit report, the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete. According to the Fair Credit Reporting Act, you can dispute mistakes or outdated items for free. You may ask the credit reporting agency for a dispute form, or submit your dispute in writing. You should include supporting documentation, clearly identifying each item in your report that you dispute, explain why you dispute the information, and request a reinvestigation. Make sure you remember to keep a copy of the dispute for your records. If the new investigation reveals an error, request that a corrected version of the report be sent to anyone who received your report within the past six months. If the reinvestigation does not resolve your dispute, ask the credit bureau to include your version of the dispute in future credit reports.

If your credit report is bad, but accurate, then start to think in terms of regaining your good credit reputation. This requires time, so do not be impatient. You need to regain trust with finance and credit card companies.

If you have recently had to pay off a lot of debt, you may be wondering what your next step should be. Maybe you have been through a divorce, and were left with a lot of high interest credit card debt; or maybe you got behind on your payments after being made redundant. Whatever the reason, you fell behind with your payments, your credit report suffered for it, but now you are keen to restore your credit reputation. Fortunately for you, it is a lot easier to re-build your credit than it was to get out of debt in the first place!

Here are the five tips that will have your credit report restored in good time:

1. Firstly, you should expect to spend about a year or more rebuilding your credit. If that seems like a long time, it is not. You must understand things from a lender’s point of view—they have to see proof that you are serious about keeping up a good credit record. The onus is on you. You are the one with a bad record, for whatever reason. You are therefore the one who must put it right.

2. To do this, you will need to establish some sort of credit, so that you can show your future creditors that you can be trusted. If you’ve had serious credit mistakes in your past, that may mean getting a secured credit card. These types of credit cards are secured by a bank balance, which will equal the spending limit on the card. The point of them is to build credit when no one else will issue you a card. They are a good way of showing that things are now on an even keel again, and you can maintain regular payments.

If you can apply for a low interest rate credit card, you should get one and use it for the sole purpose of rebuilding your credit.

3. Another credit report building method would be to make an application for a Bad Credit Car loan, and then pay it according to the suggestions I have outlined below.

4. The biggest single thing you can do to rebuild you credit is to make your payments on time. That means that you cannot be late, ever. If you are mailing in your payments, be sure to give it plenty of time to not only reach the destination, but also clear the processing channels. If you think that you’ve left too little time, send it on an assured overnight delivery. Nothing should stop you from getting those payments in on time! Remember, even one late payment can make a difference on your credit report so make your payments on time.

5. You should also aim to pay more than your minimum payments every month. That way you are showing creditors you are prepared to go that extra mile to repair your credit standing. Ideally, you would pay off your credit card every month, but if you can’t do that, then do pay more than the minimum. For example, if your minimum payment was $25 per month, try to pay at least $35. This will accomplish two things. First, it will make you look better in future lender’s eyes, and secondly, because by doing so, you will paying more toward your principle balance every month, (as opposed to interest), and that will reduce the overall amount that you’ll have to pay. The Best way to improve your beacon score with a secured credit card is to never take your total balance over half of the credit limit and pay the whole balance off every month.

Paying the extra may have a good psychological benefit to you too, as well as save you that horrendous monthly interest. It could be that, if you can pay more and more above the minimum, eventually you will be paying the balance off each month, and moving towards being a saver, someone who has more coming in each month than going out. That should be your aim long term, and the sooner you can start the better.

Do all of these things with patience and determination, and you’ll soon find yourself with a credit rating that you can be proud of!

By Credit Net Finance

Get approved in within hours. Complete our online credit application, it’s fast and easy and most of all secure. Your personal information is protected by the highest level of protection available for online.

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Some people only think they have bad credit. But, it’s likely not as bad as you think. If it’s stopping you from getting the new car that you want then try this… We have set up a secure online credit car loan application that you can fill out immediately in the privacy of your own home or office. We don’t have to meet to get started. A local financial services professional in your area will work with you to secure the loan you want and get you the car you want.