Car Loan Financing After Bankruptcy

1. Get your credit reports and credit scores
2. Put together a down payment
3. Shop For a Car
4. Avoid bad Car loans
5. Submit your Payments on time
6. Refinance to get a lower interest rate

Don't think that if you've had to claim bankruptcy that a car loan is out of the question forever. In fact,

many lenders are very agreeable to working with individuals recovering from bad credit. Here are some

steps to follow so that your post-bankruptcy car loan application is successful.

We should all check our credit reports and scores on a regular basis in these days of identity theft. If

you're coming back from bankruptcy, you want to check it at least once every six months to make sure

no errors have arisen. It happens. Lenders for a car loan are going to look more closely at your history

with automotive loans, so check to see what the report says.

After a bankruptcy, many financial advisors urge clients to operate on a cash only basis for a full year

before attempting to rebuild credit through loans. A sizable down payment indicates less risk for the

lender. If you default, they have your vehicle as collateral. Trade in your current vehicle to loosen up

extra cash toward that larger down payment if the need for a vehicle is urgent.

Do your car shopping in one day if possible to limit the number of credit inquiries, which can impact

your credit score. Gather the necessary paperwork, from pay stubs to your actual credit report. Pre-

approval before you even step into a dealership is a great idea if you can make it work. The more recent

your bankruptcy, the higher the rate on the loan will be. But if you walk in with an existing deal in hand,

many dealerships will try to match or beat it. Click here to view our New and Used Inventory

Be careful about what sort of contract you sign; individuals with poor credit history can become victims

of predatory loans. Watch out for hidden costs and make sure at the outset that the monthly payments

are comfortable for your financial situation. If you default too soon after a bankruptcy, there is no

option to file again so soon. Get Pre-approved Here or Click here to Calculate Your Payments.

One of the best ways to rebuild credit after a bankruptcy is to make regular car payments, on time each

and every month. It raises your credit score more quickly than if you didn't borrow money for a car.

After six to twelve months of regular payments on your car loan, check your credit rating. You may see

an improvement to your score, which then means you can re-finance the loan to get a lower interest

rate. That's not a guaranteed outcome, so exercise caution and purchase a car you can definitely

manage at the original monthly payment should lowered interest not be offered.