How Can I Get Approved For a Car Loan With a Prior Repo on My Credit Report?

Q: I have a truck I owe money on and have a repossession on my credit. Is there a way I can get out from under my truck and get a car even though I have negative equity?

Stephanie H. – Richardson, Texas

A: This question is important: Was the repo showing on your credit file before you acquired the truck? If so, the repo may not be a major issue since the lien holder of the truck (the latest lender) will be perceived as finding out what happened with the repo on file and you were able to justify it and proceeded to get a new loan. The other part of your situation is not that difficult since all dealers these days are familiar with negative equity scenarios – "Cash is king!" Debt-to-income ratio, payment-to-income ratio, loan-to-value and income verification will be necessary for you to be able to get from under your truck and into another vehicle. Again, a good down payment will play an important role in accomplishing what you want to do. 

Agustin Vasquez, Jr. – General Manager, Mack Massey Chrysler Jeep Dodge, El Paso, Texas