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Who can blame you?
It's bad enough out there, with our stagnating economy forcing
lenders to become even more stringent than they've typically been
in the past. Bad credit and other negative marks on your record,
such as a divorce or car repossession, can all chip away at your
credit and adversely affect your financing prospects, making an
already bad economic situation even worse. You would think that,
following a Chapter 7 or Chapter 13 filing, your credit slate
would be wiped completely cleaned, but sadly even that isn't always
the case. It's no wonder that after bankruptcy car loans aren't
generally easy to get.
But there's hope. Bankruptcy car financing isn't a myth: even
after an economic disaster, divorce or car repossession, you still
have car financing options available to you. With some diligence,
you'll be able to find a number of bad credit car dealerships
that will still work with you.
We're here to help you discover what your car financing options
are after having to declare a Chapter 13 or Chapter 7 bankruptcy.
We'll guide through the options available regardless of your credit
history, helping you get automobile financing even if you've filed
for bankruptcy or have had a vehicle repossessed in the past.
There are certain things that you can do to better your chances
of qualifying for a car loan - or at least keep your loan interest
rates down at a manageable level - following a bankruptcy. Here
are just some of them:
1. Have a direct dialogue with car dealerships' financing department.
Explain your situation (giving the department your bankruptcy
discharge information works wonders), and ask whether they typically
offer financing to people that are in your situation.
2. Take the necessary steps necessary to begin reestablishing
your credit. If you have any outstanding debts, pay what you can.
Ditto for unpaid bills. If you owe credit cards companies, don't
lag in making your monthly minimum payments. A six month history
of paying your bills will dramatically increase your chances on
getting approved for a loan at a lowered interest rate.
3. Tying in with tip #2 above, know that you'll have to be able
to show some level of payment history with an unsecured or secured
credit card. If you don't qualify for an unsecured credit card,
it's imperative to sign up for a secured one (a deposit that you
make is the amount on the card that you'll be able to use). Yes,
your interest rate will probably be high on a secured credit card;
however, if you limit its use, primarily using it to make monthly
payments for six months, it will be a tremendous boon to improving
your credit.
4. Try as best you can to limit the number of credit inquiries
that potential lenders do on your report. Many automobile dealerships
may want to make an inquiry before giving you the straight scoop,
but know that every time a company does, it usually lowers your
credit score. As well, having too many recent inquiries on a report
will typically raise flags to most lenders.
5. Know what you want beforehand. Research vehicles that are
in a comfortable price range. Use an automobile loan calculator
to determine what your approximate monthly loan payments would
be. In a word, be prepared to tell a car dealership exactly what
you're looking for in terms of car price and loan payment amounts
- you'll be more likely then to receive straight answers from
them.
Other Bankruptcy Articles:
Have
you had a recent bankruptcy? Getting a bankruptcy car loan isn't as hard as
you think
What
happens to my car loan if my co-signer files bankruptcy?
Steps
to take to Avoid Repossession
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