Finding a Car Loan After Bankruptcy
It can be tough to find an auto loan if you’ve just discharged your debts and have come out on the other side of a bankruptcy. It’s definitely in your best interest to be proactive after you’ve filed. Shortly after you’ve gone through the process, it’s a good idea to check your FICO credit report score. If your score is too low, you’ll be hit with a massive interest rate of up to 15%, or even be denied when trying to apply for a loan.
That can really add up fast if you’re financing a car for over $10,000. To help cut down on these interest rates, you should wait till you can put together as much money as you can afford. If you put a larger down payment on the account, around 20-30%, you can reduce your monthly payment drastically.
If you’re looking to trade up from another vehicle, try selling it privately before offering it to the dealership. You’ll be able to get much more for it by selling via Craigslist (most of the time), rather than trading it in to the dealer.
If you end up buying your car from a dealership, feel free to shop around on the loan. While they like to offer in-house financing, they have to give you the option of finding your own loan. You may be able to get a more affordable deal going through your bank, or federal credit union.
Don’t feel like you have to wait for your bankruptcy to be final before you can start applying for car loans. You can begin shopping around for pre-approved loans any time. The last thing you want to do is find the car of your dreams and not be able to get it because you haven’t secured the loan yet.
Whichever loan you decide on make sure to research it as in-depth as you possibly can. It’s in your best interest to know as much as you can about the company. This is why we recommend going with a popular brand name company, like Bank of America, or Wells Fargo. Also figure out if there will be any hidden fees or extra finance charges.
To keep yourself from ending back up in bankruptcy, make sure to read the fine print and do your research. Also, if it feels too soon it probably is. Give it a little time. When you’re financially ready to take on an auto loan again, you’ll know.
That can really add up fast if you’re financing a car for over $10,000. To help cut down on these interest rates, you should wait till you can put together as much money as you can afford. If you put a larger down payment on the account, around 20-30%, you can reduce your monthly payment drastically.
If you’re looking to trade up from another vehicle, try selling it privately before offering it to the dealership. You’ll be able to get much more for it by selling via Craigslist (most of the time), rather than trading it in to the dealer.
If you end up buying your car from a dealership, feel free to shop around on the loan. While they like to offer in-house financing, they have to give you the option of finding your own loan. You may be able to get a more affordable deal going through your bank, or federal credit union.
Don’t feel like you have to wait for your bankruptcy to be final before you can start applying for car loans. You can begin shopping around for pre-approved loans any time. The last thing you want to do is find the car of your dreams and not be able to get it because you haven’t secured the loan yet.
Whichever loan you decide on make sure to research it as in-depth as you possibly can. It’s in your best interest to know as much as you can about the company. This is why we recommend going with a popular brand name company, like Bank of America, or Wells Fargo. Also figure out if there will be any hidden fees or extra finance charges.
To keep yourself from ending back up in bankruptcy, make sure to read the fine print and do your research. Also, if it feels too soon it probably is. Give it a little time. When you’re financially ready to take on an auto loan again, you’ll know.
