Bankruptcy Car Loans – How To Obtain A Car Loan After Bankruptcy?
Can you get approved for bankruptcy car loans? The answer is “yes” in most cases if you follow certain steps. Car loans with bad credit are not always easy to find, but if you have declared bankruptcy recently then you may believe a car loan is not possible at all, but this is not usually true. Once your bankruptcy case is finished it is not possible for you to take this step again for at least 8 years, which is longer than the term for most vehicle loans. Bankruptcy car loans may be offered as soon as your bankruptcy is discharged in certain cases, but you may have to wait for a year or two for loan approval in other cases.
Credit loans are typically not offered right after bankruptcy, but if you have collateral you may be surprised at how easy it is to get approval for a car loan. The same may be true if you have a co signer, because these bankruptcy car loans are secured by the co signer or collateral. If you do not have these options available, and you are not getting approved or are only being offered outrageous used car loan rates, then additional steps may be needed.
A secured credit card may help you re-establish good credit, which will make it easier for you to get loan approval after your bankruptcy case is discharged. Steps to credit score repair will increase your chances of a car loan, and these can include taking out a small personal loan first. Most bankruptcy car loans will examine your ability to pay, and give this factor more weight than your credit history and credit score. Make sure that in your haste to get approval for financing that you do not end up with an upside down car loan, or you could end up stuck with this debt permanently.