I was discharged from bankruptcy in April 2006. Before I was made Bankrupt and never had any money I could have car credit but now I can easily afford repayments I can't get credit. Would I be able to get a car in my mums name. She has a brilliant credit record although she does not work any more.
Thanks for your help
2007-05-23 23:39:55 · 15 answers · asked by Anonymous in Business & Finance ➔ Credit
If you try to obtain credit in anothers name weather related or not it will always be classed as FRAUD, and the card company would be entittled to claim all the money beck and you would seriously put your chances of obtaining credit in the future in jeopardy
2007-05-23 23:45:46 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Well...I betting your in Europe maybe so the credit rules might be different but here are some solutions.
If your mom has really good credit she can add you as an authorized user to help build your credit back up ( no charging but using her history-payment and time with creditior).
I'd try to SAVE some money and buy a slightly used car like '04-'05 model (the new ones depreciate 80+% when you drive them off the lot anyhow so you'd be getting a car at or below cost..$$$)
But check with a financial planner about these, you were in bankruptcy for some money mistakes. Do you have 6-12 months of emergency savings (car repairs, medical, job loss).
There maybe some lessons you still need to learn about money and you need a plan so you don't end up in this situation again.
2007-05-24 00:54:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It's unlikely that without a source of income that your Mom is gonna qualify for a car loan but it won't hurt to apply. My thought is that there's no reason you should not be able to get a car loan because after a bankruptcy discharge you are basically the best credit risk because you cannot file again. Don't keep applying for loans but rather be upfront with a lender about your situation before they run a credit report. You may pay a higher interest rate for a loan after bankruptcy but as you said, you can afford it. Just make sure you use your head in your purchase. Going above and beyond your lifestyle is what got you into bankruptcy in the first place. Buy only what you need (transportation not luxury) and repay as fast as possible. Credit should be a need not a want. Don't get your Mom involved in your financial life.
2007-05-23 23:53:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Auto finance is what I do for a living and what you are talking about is called a "straw purchase". This is where someone purchases a vehicle for someone else.
As long as you are both listed on the insurance there really should not be a problem.
The only thing is that "straw purchases" are a violation of most every lenders dealer agreement. So you are going to have to find a dealer that is a little shady because they will most likely have to lie about your Moms income also to get her approved.
If you can find a dealer that will do a "straw purchase" and doe's not mind fudging on the credit application and your Mom agrees to all of this? You can do what you are asking.
2007-05-24 02:37:57 · answer #4 · answered by ? 7 · 0⤊ 0⤋
Only if your mother agrees to cosign. Anything else would be fraud. She does not need to work if she has another source of income that is adequate. You will be considered a poor credit risk for the next ten years although there will be second chance credit available to you at exorbitant rates and with outrageous fees. Be very careful. Also be aware that each inquiry of credit status in an effort to obtain financing reduces your (or your mothers) credit score slightly. I hope this helps.
2007-05-23 23:57:12 · answer #5 · answered by Siri S 1 · 0⤊ 0⤋
Credit companies hold the titles to cars they finance. So, your mother's name would have to be on the title. If you live in the same household, it may not be a problem. But, if you live in two different locations, getting yourself covered on the car insurance would be a problem. You would have to be listed as the primary driver. You would probably have to pay high rates for such an arrangement. Consider paying cash for a car. Or take over a lease agreement. If you live in the US, try www.leasetrader.com.
2007-05-23 23:47:11 · answer #6 · answered by regerugged 7 · 1⤊ 0⤋
Yes so long obviously as she is aware, if not its fraud. The car would be hers and as said if payments not made then she gets the trouble, so be sure you can afford it. Also as said insurance could be a problem. Technically she would own insure and you would have to be a named driver. The other way is for her to have a loan from the bank and buy you a car.
2007-05-27 03:46:33 · answer #7 · answered by pollywallydoodle 3 · 0⤊ 0⤋
Yes but it won't be your credit.
Your mother will be the person who gets the credit, she will own the car, she will be responsible for paying off the credit and if it isn't paid she will be the one who gets into trouble.
2007-05-25 08:29:37 · answer #8 · answered by Shonz 3 · 0⤊ 0⤋
your mum could get car credit, you couldnt. however your mum will need to insure it fully comp, in her name. now if she has no claim bonus it will be on her own car, so it is going to cost you a fortune. and you will lose out on future no claims bonus earned on the new car.
if you are discharged and you can prove reasonable income I would talk to your bank.
or get her to sign the loan as guarantor, saying she will pay if you dont. that might work for you.
2007-05-24 02:35:57 · answer #9 · answered by alatoruk 5 · 0⤊ 0⤋
No, you cannot get a car in her name. She can get one in her name and let you drive it. Or she can cosign for your loan. Her choice. If she decides to cosign a loan for you it will help to rebuild your credit rating. However if you mess up on the payments, it will go against BOTH of your credit records.
2007-05-24 01:06:08 · answer #10 · answered by Bostonian In MO 7 · 1⤊ 0⤋