Car Loan After Bankruptcy Is Not As Tough To Get As You May Think!
Going through a bankruptcy can be tough on your credit, but it doesn’t have to prevent you from receiving a car loan after bankruptcy. Here are steps to help you receive approval.
Depending on which bankruptcy you have filed the processes can be different. If you filed for Chapter 7, you will have to go through a 341 meeting. This is where a trustee will review all of your financial information. Once the meeting is over, then you can go forward with trying to receive a car loan after bankruptcy.
If you filed for Chapter 13, the process is a little different. Since you have set up a payment plan with the court you would have to receive the permission of the trustee to apply for a car loan after bankruptcy.
Once you receive approval, you’ll want to research finance companies to see where you can get the best car loan rates. One of the best websites you can visit is Cars Direct as they provide a list of lenders that can help. There are many banks and credit unions that have experience helping people get a car loan with bad credit and they can walk you through the process.
It’s important to note that you should expect higher interest rates for car loans if you have been through a bankruptcy. This doesn’t mean you couldn’t refinance down the road, but it’s good to expect higher rates so it doesn’t come as a surprise. You should also expect to make a downpayment as many times it’s a condition of approval.
To see where you can get the most favorable terms on a car loan after bankruptcy shop around. Choose at least three lenders and see what they can offer you. Often times, online car loans are a great option because the companies have a history of helping people with bad credit histories. Further, your local credit union is a great option too as they provide their members with low rates.
Additionally, if you have had your bankruptcy discharged you can also apply for auto financing. A good resource is to go to online as you can apply and receive quotes from different lenders.
Ultimately, while a bankruptcy can be damaging to your credit, it doesn’t have to prevent you from obtaining auto financing. By following these tips, it can help you take the steps you need to put your credit back on track.