Auto loan applicants with poor credit might find that adding to and correcting the inaccurate information in their credit reports might bolster their credit scores and even help them establish a credit history
Car shoppers that have experienced problem credit with either a slim credit file or one that contains mistakes can increase their chances of car loan approvals by having the inaccuracies removed and having accounts corrected before beginning the application process.
Here at Auto Credit Express we know this can help because we’ve spent the past twenty years helping consumers with questionable credit find those new car dealers that can give them their best chances for repairing their car credit with an auto loan.
So if you were wondering if you could buy a car with no credit history, here are some tips on how you can both add missing information and delete any inaccurate information found in your credit reports:
Step one: order
To receive copies of each of your three credit reports you can enter a request online at www.annualcreditreport.com (you are entitled to one per year from each bureau at no charge).
A second choice: companies such as FreeScore360.com will, for a fee, furnish you with a report plus a credit score from each of the three bureaus.
Step two: review
Review each report and check for duplicate data, missing accounts, records that should be expired, reporting errors and fraudulent information.
The time negative information can remain on your reports varies. The lengths for some common items are as follows:
Tax liens – Indefinitely if not paid. Once paid, they can appear for an additional 7 years from the date paid.
Bankruptcy –10 years following the filing date, with each account record included in the bankruptcy remaining on the report for 7 years.
Charge-offs, collections, closed negative accounts, foreclosures, late payments and repossessions – Each can appear for 7 years. Collection records expire 7 years after the last 180 day late payment that led to collection action.
Inquiries – Records such as credit requests and loan applications can remain for 1 to 2 years.
Step three: dispute
Under the Fair Credit Reporting Act (FCRA), you have the right to dispute incomplete and inaccurate information in your credit files.
Equifax and TransUnion will allow mail-in disputes and, along with Experian, also offer an online process. Make sure to include your name, address, a copy of the credit report listing the inaccuracies and any supporting material such as account records, statements and lender correspondence in the dispute letter.
Credit reports also contain the information needed to directly contact creditors –by phone or in writing. If a creditor acknowledges that the information was incorrect, get it in writing. Keep all paperwork – if a creditor continues to report inaccurate information you can send copies of it to the credit bureaus to have the inaccuracy removed.
If you find that accounts are missing from one or more of your credit reports, it could be caused by something as simple as a name change. Keep in mind, however, that creditors are not required to report information to all or even any of the bureaus.
Step four: corrective actions
Credit bureaus are required to investigate and make any changes within 30 days of a dispute filing. Once complete, they’ll inform you by letter of any information that was or was not changed.
Once you’ve completed the process, you can order a final credit report at no charge to verify that all changes have been made.
The next step
Once you’ve completed the process, if you find that you still have questionable credit, we want you to know that here at Auto Credit Express we match applicants that have experienced credit problems with dealers that can offer them their best chances for approved car loans.
So if you’re ready to establish your auto credit, you can begin now by filling out our online car loans application.