Post-Bankruptcy Car Financing: How to buy a Car after Discharging Bankruptcy?

The following steps will help you to tackle bankruptcy and help you to navigate yourself to get an auto loan.

1. Take Time to Build Credit

The bankruptcy remark can stay on your credit report depending on the type of bankruptcy. For instance, a chapter 7 bankruptcy can stay up to 10 years and a chapter 13 bankruptcy can stay up to 7 years on your credit report. You can always obtain an auto loan before your credit report becomes spotless. However, it is highly recommended that you build your credit score for a few months before applying for an auto loan. Apply for a secured credit card, make timely payments and have a high debt to income ratio. Once you have a decent credit score, you can better negotiate the price of the car and the interest rates.

2. Don’t Buy a Pricey Car

If you are setting your eyes on the new Mercedes or are aiming for a pricey car, you may want to reassess your choice. Never extend your auto loan term because you cannot afford to make your payments. Instead, choose a used car from a previously successful car series and select a term of 60 months or less. Choosing a used car is a reflection of how seriously you take your finances and indicates that you will not repeat past mistakes. Once you have improved your income status and finances, you can aim for a high-end car. Therefore, choose wisely while selecting your car after bankruptcy.

3. Get pre-approved

Obtaining a pre-approved auto loan is a good direction in building trust and getting financially secure. You may face an initial hiccup due to your credit history. However, you can make a strong case with the help of a co-signer on your side. Decide on the loan amount and aim for lower interest rates. You will be able to use your co-signer as leverage to negotiate better interest rates. You can qualify for an auto loan post-bankruptcy at your convenience with the help of online auto lenders. You must search for a suitable online auto lender who will help you with the entire process of getting a pre-approved auto loan.

A financial situation like bankruptcy is difficult to sail through and come out. However, an auto loan can be a start. An auto loan after being bankrupt can help you to build your credit score back. If you make timely payments, the credit agencies measure your improvement and there may even be a chance that you can refinance your auto loan. Try to think outside the box and do not make bankruptcy a bleak scenario.

Are you out of bankruptcy? Do you want to buy a car? With FastAutoLoanApproval.com, you can buy a car post-bankruptcy. Apply for after bankruptcy auto loans and get access to affordable car financing. With our large network of lenders, subprime car financing is feasible for every auto buyer.

:- Posted by Admin on 1st October, 2019