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Are you worried about your prospects of getting approved for car financing following a bankruptcy?Tell a Friend

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Home > Bankruptcy Car Loan Articles

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

Other Helpful Bad Credit / Debt Related Articles:

Avoid "Fast" Credit Repair Compaines. They only make your credit worse, not better

9 Tips On How To Repair or Reestablish Your Bad Credit

How To Raise and Improve Your Credit Score

Interview with Dale Mayer the author of The Home Mortgage Book

3 Secrets To Getting A Bad Credit Auto Loan


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