Joe shares a story about a client who lost several rental homes and cars due to a case of mistaken identity – but it’s definitely not what you think. Listen and enjoy.

Interview highlights: How a good financial manager can use your credit history backstory to reverse an initial credit rejection.

“A really good financial manager – whether auto or mortgage  – will typically be the person who pulls your credit file and examines it. The job of a good credit manager is to explore those issues with you.

Lazy Finance Manager

“A young man visited us at the car dealership. He had filed for bankruptcy, but we noticed that he had good credit two years prior to filing. He lost a couple of mortgages/houses to foreclosure and 3 vehicles were repossessed. We realized that there must have been an event. We told him that the banks need to know what happened to you – your story.

He said it was a case of mistaken identity.

“That piqued our interest. We said, ‘What do you mean by mistaken identity?’ He responded: ‘I was mistaken for someone else and shot 5 times. While  in the hospital, I lost my homes and my vehicles.’

“This was  confirmed by over 100k in medical bills. The bank said it didn’t want anything to do with him. We replied, ‘You need to hear his story.’

“The bank finally said, OK, we will do the deal with at least 5k down. It wasn’t a problem. He was a tradesman in the construction industry and was good at what he did. He was able to get his new truck, his credit on track, bought another house and wiped out the issues that plagued his credit history.

“Most people think that the banks don’t care about your backstory. They do, but someone must advocate on your behalf and tell them what happened. Unless they know there is a backstory, they will look at a deficient credit report and reject it out of hand.

“Here’s the key: We waited for the bank’s turn-down. At that point, we knew which credit analyst was looking at the submission, contacted him, explained the backstory, and the decision was turned around.

“If you’re applying for credit, particularly with car dealerships, your initial contact will be the financial manager at the car dealership. While some are lazy and will drop it from the start, others  will go the extra step and try to convince the bank that this is a contract worth considering. Finding yourself a good dealership who is ready to be your advocate is an important issue.

“It’s based on relationships – do I want to do business with these people? In the mortgage industry, you’re still dealing with a point person. It may be the loan person at the bank or at the mortgage company. There should be one person you can talk to directly. They want to put the deal together and are looking for reasons. You need to have a good backstory.

To your credit!

Dr. Joyce Starr

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I like Toyotas and have owned one. However, I was shocked by this particular ad – which featured a young boy with blond hair – perhaps 10 to 12, but definitely a future stud – describing his parents as losers because they still drive a station wagon. The ad was filmed in front of a school with kids running in every direction.

What was Toyota thinking? At a time when a major segment of the American public is struggling just to hold on, Toyota’s message was very clear: If you’re still driving an old car, you’re a loser and your kids should be ashamed of you.

The ad depicted the lad leaping into his parent’s beat-up station wagon rather than being seen by his friends in such an embarrassing car.

Oh what awful parents. Perhaps Dad is unemployed and mom has a low-paying job.

The ad sends a clear message: Parent’s who can’t afford the latest Toyota have no class at all.

Well, I say, Enough. Auto companies have used children in their ads to evoke interest in particular features – but this is the first time I can recall where the commercial pits a child against his folks. Indeed, the child was holier than the father – or mother.

But here’s what I see: a child with miserable values.

Fortunately, a week or two following our show on “Auto Advertising Below the Belt,” the ad was pulled.

Perhaps we played a small role.

Auto Ads Below the Belt: Telling Kids Their Parents Are Losers originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on December 26, 2010.

Listen to the program – enjoy the highlights below.

Good news on auto financing.

Q: How has the economy has affected auto financing in general – particularly the accelerating numbers of foreclosures. Are auto lenders tightening their belts – especially for those who filed for bankruptcy or went through foreclosure?

Pre-Owned and Proud of It

A: Actually no. Financing is available. In fact, I feel that companies in this arena are doing even more to help.

Q: I would have expected you to say just the opposite – that auto financing has tightened up exactly like mortgages.

A: Lenders I work with understand that there’s is a human side to this. They have to get up and go to work every day themselves. People have the option to buy a house, but may have no choice regarding a car.

Q: What about rates?

A: Rates vary state to state. They’re set by auto finance committees.

Q: What are the prospects for auto financing if someone filed for bankruptcy?

A: People often surrender their vehicle during bankruptcy because they’re upside down on their car. But they still need transportation to get to their job. Banks and lenders who specialize in auto financing want to know if the person (or couple) was prompt in paying car payments, if they previously paid the minimum due monthly and if they’ve done their homework before seeking another vehicle.

Q: What homework must they do?

A: First, you should understand what’s available in your state. You should identify dealerships in your area that are able to help you. You can’t get into an auto loan without putting money down. Be prepared to put down between $500 and $2500.

Q: What if they don’t have it?

A: If even $500 is almost impossible, lenders will work with me. But you may not get the SUV that your heart desires. Be realistic. I’ve had consumers wait months to come up with the $500.

Q: Please describe your program.

A: My particular program is pre-owned vehicles. The lenders want to see a vehicle that is mechanically sound. You must have proof of income – at least six months of bank statements for those who are self-employed. Never give your credit info over the phone. Go in and meet the person who is working with you. Try vehicles on for size. Find one that fits your budget.

Q: What else should the buyer be ready to provide?

A: Proof of residency, a utility bill and phone bill. Some require as many as 10 references of people that can verify that they know them.

Q: Isn’t that a potential privacy violation? What if the buyer defaults?

A: The lender won’t force references to pay for the car if the buyer defaults. In fact, they’re unlikely to contact them at all – unless help is needed in locating the buyer.

Q: What if the person doesn’t have a job.

A: No bank will lend to someone who is not employed, unless they’re on social security or social security disability.

Q: You have two websites with excellent information.

A: Yes, please visit freshstartindy.com and freshstartindy.net. We provide information on auto financing, how to improve your credit score and also identity theft protection. Your listeners can contact me directly through the form on freshstartindy.com.

How to Obtain Auto Financing after Bankruptcy or Foreclosure originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on September 25, 2010.

Preposterous as it may sound, it’s often easier to obtain a car loan if you’ve been through a bankruptcy than if you have a good credit score.

Were you stressed out when it came time to arrange financing for your car loan? The majority of consumers who have been through this process describe it as extremely uncomfortable with a large dose of anxiety thrown into the mix.

Add to this the fact that more than half of all consumers do not qualify for conventional financing, and you have a sure-fire recipe for a really bad day.

My guest explains why auto financing is a psychological boost for so many people and takes you through the key steps in applying for an auto loan. She also doubts that any of the major auto manufacturers will disappear.

While Dora Lee’s specialty is working with customers that have credit issues, her knowledge of car loan financing applies to anyone that needs to arrange financing for their cars. The website she founded – FreshStartIndy.com – offers an inside look at the car loan process.

This show aired live on this page on April 8, 2009. Please click the play arrow below to listen to the replay.

To your empowerment!

Learn how to save money with car loans and home loans here.

Auto Loans: Why Good Credit Could Hurt You originally appeared on Rights Radio™ with Dr. Joyce Starr - An Independent Voice on April 7, 2009.