As more and more Sacramento residents are discharged from bankruptcy they are looking to car financing to rebuild their credit, or buying used cars with cash. While it’s generally a good idea to purchase a used car after bankruptcy over a new car it won’t do anything for your credit if you don’t take a loan out. With that being said; there is both a correct way and a wrong way to obtain an auto loan following bankruptcy discharge.
Once you receive your Sacramento discharge papers in the mail (and sometimes before) you will start receiving fliers in your mail from “understanding” lenders offering you “great deals” on car loans. Don’t be fooled by these tempting offers because they will most likely hurt your situation further; not help it.
Here’s why: these so-called “understanding” Sacramento lenders are really only out for one thing – your money. They know most debtors look into getting a new line of credit to start rebuilding their credit scores right after bk, and they figure they can charge outrageous interest rates without the applicant thinking twice. This is make the monthly payments expensive and unaffordable and could leave you in the same position that landed you in bankruptcy.
The Right Way to Get a Car Loan after Bankruptcy
Obtaining a good car loan after bankruptcy is possible and at affordable rates. Once you have received your discharge papers you should also pull your credit report. This will show you all the accounts of your credit history that were included and excluded from you bk, and will allow you to clear up any mistakes. By knowing your credit score you are more likely to get a better interest rate too.
Next, you should throw all the fliers you received in the garbage, and jump on the internet. Many Sacramento subprime lenders have secure online applications your can fill out in a matter of seconds to see if you will be approved. By doing it online you save yourself time and hassle, and allow yourself a greater chance at an approval by filling out applications for multiple lenders.
For example, here at BankruptcyAutoFinancing.com we work with a network of Sacramento lenders that specialize in bad credit and bankruptcy auto loans. They have the tools and the experience to get you into a used car that fits your budget.
Remember, we are not lawyers and cannot give legal advice. The situation discussed are only our experiences over the years and may vary with each customer.