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Car Loans After Bankruptcy - 3 Tips On Financing Your Car With Bad Credit
By: Carrie Reeder iSnare Expert Author
If you have recently filed bankruptcy, you may wonder if its possible to get
auto financing again. There are more and more loan companies all the time that
have new programs to help finance people with bad credit. An auto loan is easier
to get financing for than a personal loan or an unsecured loan because the
lender can use the car as collateral against the loan, in case the borrower ever
defaults or doesn't make the loan payments.
Here are some tips to help you when getting financing to purchase or refinance a
vehicle after a recent bankruptcy.
1. Get Financed To Re-establish Your Credit - Getting a new car loan can help
you re-establish your credit when you make your payments on time. Once you have
made payments on time for about 6 months or longer, you should be able to
refinance your car at a much lower rate. As you make your payments on time, your
credit score will increase.
2. Buy The Lowest Priced Car You Can - When financing a car after a recent
bankruptcy, you can expect to see interest rates as high as 14-19% or more. It
is not wise to buy a car that is more expensive than you need because,
initially, you will be paying such a high interest rate on the amount you are
borrowing on. If you do want a more expensive car, wait until you have made
payments on time for a year or two, after your credit rating has increased.
Then, you should be able to get an interest rate of around 9-10% or less.
3. Get Multiple Offers - There are many lenders online that will offer you up to
4 offers from one application. Most of these loan companies will not even pull
your credit with the initial application, they will just ask you to describe
your credit. This way, your credit score will not drop from being pulled too
often.
About the Author:
See my recommended After Bankruptcy Auto Lenders online. Carrie Reeder is the
owner of ABC Loan Guide, which offers help with after bankruptcy car loans. |