Car Loans After Bankruptcy A Fresh Start Opportunity
Coming out of a long bankruptcy can leave you unsure of where to turn. You need to decide which direction to go in order to find cars loan after bankruptcy. Fortunately, there is a market designed to accommodate your situation being that may people go through a bankruptcy.
Financing a car after bankruptcy is actually a proven way to re-establish your credit. Being that it is a major purchase, if handled responsibly it will give your credit score a nice boost. To improve your chances of getting financed it is advisable that you have a good down payment (at least 20% – 30% of the car loan amount). This will definitely increase your chances of landing car loans after bankruptcy.
Do not go overboard, especially now that you’ve just graduated out of bankruptcy. You need to play it smart and get a good reliable car the suits your needs, not necessarily your wants right now. Afterall, you surely don’t want to end right back up in bankruptcy now do you? That’s why it’s best to play it smart and conservative. Adopt a disciplined financial approach in your search for Car Loans After Bankruptcy.
The first thing you want to do after coming out of a bankruptcy is to Credit Unions versus Banks
If you’ve been turned down by banks, you might want to try approaching credit unions for possible car loans after bankruptcy. You might find that they’re more open to working with you in your rebuilding situation. Also credit unions have been known to supply better loans with lower interest than many Major banking institutions.
Another option is to go straight with dealer financing. Particularly, many smaller dealers specialize in catering to individuals with bad credit. They specialize in what is called the subprime lending market i.e., providing second chance opportunities for citizens who have experienced credit issues in the past.
Many of these dealers have the independent power and authority to finance you without all the red tape that a bank would put you through. You can identify many car dealers of this kind offline as “Buy Here Pay Here” lots — or online as Bankruptcy Car Loans Specialist, Bad Credit Car Lenders, Sub-Prime Auto Lenders and the like. Some are good and some are not. You need to thoroughly check out the reputation of any car dealer before doing business with them.
Check with the Better Business Bureau, ask around, chat with current or previous customers if you can … whatever you have to do to get a good view of the company’s reputation. You should aim for Car Loans After Bankruptcy Dealers that report to major credit reporting agencies which are: Experian, Equifax and TransUnion. This will enable you to gain much needed positive marks added to your credit report after bankruptcy.
Be Honest, Straightforward and Realistic
Visit different car lots and talk to them. Let them know your situation and you should eventually find a car lot that’s ready and willing to give you that rebound shot that you need.
To increase your chances of getting a loan, again, have a good sized down payment. It would be unrealistic to believe that you’ll get a Zero down loan coming straight out of bankruptcy – so you’d better step on the lot with money talking.
What Lenders Want To Know…
What car financing lenders will want to know for sure is … “Do you have the means to pay us as promised?” Therefore, you need to show a steady proof of income to win their trust. You need to show that you have a stable job or some reliable source of income.
They typically will want to see your last two paycheck stubs, license and other personal documentation before they’ll even consider financing you. Therefore, it is best to have all this information handy.