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Getting a car loan after a bankruptcy

It is absolutely possible to get a car loan after a bankruptcy and Car Loans on Demand can help. Lenders actually tend to give a post bankruptcy customer a bit of a break as compared to a client who currently hasĀ  bad credit. An auto loan can be easily obtained rather than a personal loan. Because a personal loan usually has nothing to secure it to, most finance companies won’t have anything to do with them. An auto loan is different though. With a car loan, the bank at least has the option of repossessing the car if the loan is not paid.

With that said, let’s take a look at some ideas for getting an auto loan after discharging a bankruptcy.

  1. Getting a new or used auto loan will helpĀ  re-establish your credit and nothing could be more important at this stage of the game. Once you have a car loan it’s critical that you make each and every payment on time so that you can continue to improve your credit score.
  2. Review all of your credit cards and installment credit accounts. Even though you have a lawyer it is important that you double check each and every one of your previous accounts to ensure that you either close them or redeem them. While we do not offer legal advice, more than likely you will want to close out anything that has an open balance. That would include, possibly, your current open car loan.
  3. Excessive interest rates don’t have to be paid. Car Loans on Demand will work with you to find a car and a rate that fits your budget and your lifestyle. While the car loan rates will be somewhat higher than what someone with good credit will receive, the important thing is that you get a loan that you can afford to pay back on time. Don’t get too caught up on the interest rate.
  4. Select the right vehicle. Often times lenders will actually be too lenient when it comes to providing credit for post bankruptcy customers. The last thing you want to do is get a loan for too much vehicle. You know your limits better than anyone, so exercise good judgment when making your final decision.
  5. Bring a good down payment. Even though it may not be required it is recommended that you put some money down to show a strong commitment to the finance company and it won’t hurt to keep the payment down either.

Car Loans on Demand has a network of dealers who is familiar with these situations and help get you into a car loan fast. Just call or log on today and let us go to work for you.

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