Bounce back from bankruptcy with a vehicle loan
So, you have filed for bankruptcy. You think your life is on hold. You’re worried that you will not be able to get any form of credit ever again. Your car has just died and you’re concerned that no dealership will even think of giving you a car loan. Fear not. You can get a vehicle loan after bankruptcy. It will just take some time and research.
Believe it or not, getting a car loan is one of the best steps in rebuilding your credit after bankruptcy. Once you are able to prove that you can pay your loan on time, your credit can slowly improve. However, you will have a hard time finding a car dealership that will give you a car loan. Most auto-finance companies will hesitate to loan money to those who have recently filed for bankruptcy. They consider it a risk and will not likely approve a car loan. Instead, seek out a subprime lender. Subprime lenders are lenders who specialize in loaning money to those with bad credit. Subprime lenders are a lifesaver for those who have filed for bankruptcy, had a mortgage foreclosure, or have had a car repossessed.
You can expect a high percentage rate on subprime loans. This is the downside to having to go this route. Percentage rates on subprime loans are generally more expensive, but they pay off in the long run. You need a way to rebuild your credit, and this is one way to do it.
When you are ready to search for a car loan, look no further than the Internet. The easiest way to get the best rate possible is to compare rates among different reputable, subprime lenders. When you find a suitable rate, apply for a pre-approved loan. Once you are approved for that loan, take your loan paperwork into the car dealership and purchase the vehicle you can best afford. The dealership should give you no problems when it comes time to talk about payment.
If you have a credit score below 500, you may find it difficult to get even a subprime loan. One of the best ways to remedy this problem is to apply for a secured credit card. This type of credit card is secured by a certain amount of money in which you have deposited in the bank of the card you choose to cover the card limit. For example, if you need a $500-credit limit, you will need to deposit the amount into the bank that is servicing your card. Once you prove that you can handle paying the monthly bills, your credit score will go up. This is one way you can get your credit into better shape.
Don’t fear if you have to file bankruptcy. It seems scary, but you will come out better in the end. You will be able to obtain a car loan post-bankruptcy. Just plan and research the offers available to you.