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Loans: Vehicle Loans |
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More Ask Susan |
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I am the primary borrower of a car along with an old girlfriend. She has the car. The payment is now more than 60 days late and has been reported the credit agencies. I have outstanding credit and do not want to take any more chances of late payments made. What would you recommend I do in order to get the car out of my name? -Mark |
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Mark,
Unfortunately, there is no simple way to “remove” your name from a cosigned loan. In order for the primary borrower to assume total responsibly for the debt, she would have to apply for a new loan and qualify on her own.
For more information, see the section on cosigned loans.
The Advice Team |
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I have carefully been rebuilding my credit for several years and it has made significant improvement, but is still not good. I am about to purchase a car for the first time and I'm getting conflicting advice. I'm trying to determine which type of purchase would have the most positive impact to my credit report. Does it make a difference if I buy a new or used vehicle?
Your help would be most appreciated. -Michael |
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Michael,
When purchasing an automobile, it is important to remember that a car is a tool that provides safe, comfortable, and efficient transportation. The type of vehicle you buy makes no difference to your credit score.
Determine what you can afford and then seek a loan with the best terms. Make all payments on time and as agreed. Your payment history accounts for a whopping 35 percent of your FICO score.
The Advice Team |
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I have recently tried to lease a new Honda. I've had a lease for five years with Bank of America. I also filed for bankruptcy in April of this year. When I filled out the leasing papers I had a co-signer with excellent credit. They still refused me. I even tried to have my co-signer be the main leasee and me the co-signer and they refused that also.
Is there anything that I can do to lease another car? I never missed a car lease payment in five years. I only listed credit cards for my
bankruptcy. -Linda |
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Dear Linda,
The notation that you filed Chapter 7 bankruptcy will remain on your credit report for up to ten years. As you have learned, this notation can affect your chances of getting credit.
You could try to shop around for another lender. Someone will finance you. Please be sure you understand the terms of any new loan and be prepared to pay high interest rates. Having a large down payment may also help.
The Advice Team
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My car payments are $465 a month for a car that I am upside down in. Should I try to refinance or buy a new car to lower my payments? Any suggestions would help. Thank you - Robert |
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Robert,
You’ll have to get yourself right-side-up before you can realistically refinance or sell your car.
To do this, you’ll either have to come up with the cash to pay the balance or you’ll have to live with the $465 payment for a while. For example, if your car is worth $16,000 and you owe $17,000, you will have to come up with the difference ($1,000).
If you do have the cash, and need to purchase another vehicle, be sure to shop with your head and not your heart.
Good Luck,
The Advice Team
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