Connect with us

News

Your First Post-Bankruptcy Car Loan

Published

on

It usually feels great after you’re discharged from a bankruptcy. However, the scars left on your credit reports? Not so great. Here’s what you need to know to navigate your first car loan post-bankruptcy.

Can I Get a Car Loan Right After Bankruptcy?

Your First Post-Bankruptcy Auto LoanOnce you’ve been discharged from bankruptcy, you can usually get into an auto loan rather quickly.

If you apply for a car loan immediately after your bankruptcy is completed, your discharge may not be on your credit reports just yet, and it can take a month or two for it to appear.

To prove that you’ve been discharged, simply have your discharge papers handy to show the auto lender that you’re in the clear and able to take on new credit.

What Kinds of Lenders Work With Post-Bankruptcy Borrowers?

There’s a type of car lender, called subprime lenders, that commonly works with bankruptcy borrowers and those with situational bad credit. They’re indirect, third-party lenders that are signed up with special finance dealerships.

Direct auto lenders – like credit unions and banks – are more likely to have higher credit score requirements that bankruptcy borrowers can struggle to meet. For a higher chance of getting a car loan approval, borrowers who were just discharged from bankruptcy can consider a subprime auto loan.

Both direct and subprime lenders report car loans to the credit bureaus, which means an opportunity for credit repair post-bankruptcy.

Bankruptcy Auto Loans and Credit Repair

After bankruptcy, you may have watched in horror as your credit score plummeted. However, this is normal for many bankruptcy borrowers. Just know that credit scores aren’t set in stone, and time (and a little bit of work on your part) heals them.

If you get an auto loan after bankruptcy with a lender that reports it to the major credit bureaus, then your on-time payments can rebuild your credit score after bankruptcy.

The good news is that the majority of your credit score is based on your payment history. Yes, bankruptcy can damage your credit, but credit scoring models are usually more concerned with your ability to repay loans and your payment history on your previous and current accounts. If you have a good overall repayment history, or you’ve completed a car loan in the past, it looks better on you as a borrower and raises your credit score.

Your bankruptcy isn’t going to be listed on your credit reports forever, either.

Borrowers who filed for Chapter 7 bankruptcy can have their bankruptcy listed on their reports for up to 10 years. If you filed for Chapter 13, the bankruptcy is removed from your credit reports seven years from the date you filed. Nearly every other negative mark on your credit reports is gone after seven years, too, and their impact lessens after each passing year until it goes away.

What’s on Your Credit Reports?

Before you head out and apply for an auto loan, review your credit reports. Take a moment to see what car lenders see.

Make sure your credit reports are saying the right things about you, too. Look for inaccurate dates, check your past addresses, and review past accounts. Make sure that your bankruptcy is being reported correctly, too.

If you find any mistakes on your credit reports, you can dispute it and have the error fixed. Disputing an error can usually be done completely online with the major credit reporting agencies.

You’re allowed one free copy of your credit reports from each of the major credit bureaus – TransUnion, Equifax, and Experian – once every 12 months. However, the coronavirus pandemic has caused some financial rifts, so everyone is currently allowed a free copy once a week until April 2021.

You can request your reports for free from www.annualcreditreport.com. Take advantage of the ability to review your credit weekly, since it can allow you to watch your post-bankruptcy credit repair in nearly real time.

Getting a Post-Bankruptcy Car Loan

Sometimes, people have unexpected life events that throws a wrench in their financial well-being, which can lead to bankruptcy filing. Some auto lenders can see the story in your credit reports, and look at other aspects of your life to get a better picture of you as a borrower. Subprime lenders look at more than just your credit reports.

Ready for your first car loan after bankruptcy? Then you’re in the right place. Here at Auto Credit Express, we’ve cultivated a nationwide web of dealerships that reaches coast to coast.

To get matched to a local dealer that’s signed up with the lenders you need for your post-bankruptcy auto loan, fill out our free car loan request form. We’ll look for a dealership in your area with the lending options you need after you do.

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk/debug.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source link

Continue Reading

News

Are Sallie Mae Student Loans Federal or Private?

Published

on

When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

Learn more:

Source link

Continue Reading

News

Tips to do some fall cleaning on your finances

Published

on

Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

Source link

Continue Reading

News

How to Get a Loan Even with Bad Credit

Published

on

Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.

 

 

Source link

Continue Reading

Trending