If you want to get a car loan after bankruptcy, there are two things you should pay attention to:
- How to improve your chances of getting a car loan after going bankrupt
Increasing your credit score is one way to improve your chances of getting a car loan after bankruptcy.
How can your credit score go up? One way is to keep your credit reports up-to-date. This means getting rid of any negative information that is wrong or old from your credit reports. This will take time on your part, but if it makes the difference between getting a car loan after bankruptcy and not getting one, it may be worth it.
Adding good things to your credit report is another way to raise your credit score, but not many people know about this method. Since there isn't enough space here, I'll save that for another article.
In After Bankruptcy Credit Solutions, I explain in detail how you can improve your credit score in a number of ways. Even though we can't talk about all of them or any of them in detail here, we hope this gives you an idea of what you can do.
You can also increase your down payment or look for a cheaper car to improve your chances of getting a car loan after bankruptcy.
For example, let's say you have $1,600 to put down on a car that costs $16,000. This is a 10 percent down payment. But what if the lender won't give the loan because the down payment isn't big enough? Check out what they can do with a $8,000 car. Your $1,600 is now equal to a 20% down payment. Also, if everything else stays the same, your car loan payment after bankruptcy will be less if you pay it off in the same amount of time.
Next, let's talk about ways to lower the interest rate on a car loan after you've filed for bankruptcy...
- After filing for bankruptcy, lower the interest rate on the car loan.
Here's another reason why it pays to work on your credit score. Why? If you can raise your credit score enough to lower the interest rate on a car loan after filing for bankruptcy, you could save hundreds or even thousands of dollars.
Let's use a $15,000 car loan as an example after bankruptcy. Let's say you improve your credit score enough that your interest rate drops from 14 percent to 11 percent. You will save about $1,067 in interest over the life of the loan. That's money that stays in your pocket.
There are other ways besides raising your credit score to lower the interest rate on a car loan after bankruptcy. For instance, there's another way to lower the interest rate on a car loan after bankruptcy, which can save you up to $100s of dollars (or more). We don't have enough space to talk about it here, but it's a great way to get a car loan quickly if you don't have time to improve your credit score. In After Bankruptcy Credit Solutions, I talk about it in more depth.
Now you know some specific things you can do to improve your chances of getting a car loan after bankruptcy and possibly lower the interest rate you have to pay.
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DISCLAIMER:
This information is only meant to give you a general idea of what is being talked about.
This information is given with the understanding that neither the publisher nor the author are giving legal, accounting, or other professional advice. If you need help from a lawyer or someone else with specialised knowledge, you should hire a professional.
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