Here at Bankruptcy Auto Financing we are dedicated to helping people with less than perfect credit get into a car that they can afford. We are frequently asked for our suggestions for auto financing after bankruptcy so below we have listed six tips for car financing for someone who filed bankruptcy.
Tips for Car Financing after Bankruptcy
- Wait two to three years after bankruptcy to apply. Although some lenders will grant you a loan right after bankruptcy or even during, it is best to wait a few years. You will then have lower interest rates and have some time to rebuild your credit.
- Get a secured credit card. This is a credit card from a company that reports to the credit bureaus, so your timely payments will be reported and help raise your credit score. By charging a small amount on the card and paying it off in full each month, you will see your credit score rising accordingly.
- Be a responsible shopper.Buying a brand new sports car is appealing, but not practical. Buy a late model reliable car with a lower price tag. This will save you money on the interest rate as well as the down payment.
- Save money for a down payment. Most lenders like to see 10-20% down on a car. This is because you are considered a high risk lender, and a down payment means you have invested something into the car and you are more apt to make timely payments.
- Use a subprime lender.You will have a greater chance at being approved by using a lender that specializes in bad credit auto loans. Lenders such as banks and credit unions are iffy about lending to someone with a recent bankruptcy.
- Take credit counseling and debtor education classes.Many times you are required by the bankruptcy courts to complete these courses either before or after bankruptcy. These classes will explain a fast and easy way to maintain and manage your payments, and could help keep you from repeating past mistakes.
Filing for an Auto Loan Today
We have been the leading provider for bankruptcy car financing for over 10 years, and although the ideal situation is to be discharged we know that’s not always possible. We can help you get an auto loan in chapter 13 bankruptcy or chapter 7 bankruptcy, also.
If you have found yourself in the situation of needing to get an auto loan in bankruptcy or after, start today by filling out our online application to see if you are pre-approved. We will compare your application to the requirements of local dealerships to see which one can get you the best deal.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.