It can be quite easy for one to get a car loan following a bankruptcy. Negotiate the best deal by taking control of your financial situation. With so many lending options available, you can choose your lender. Before anything else, build up your credit again. Then, look for car financing before you start shopping. Not only do you stand the chance of improving on your interest rate, you would be paying less overall for your automobile.
Be Proactive In Securing Financing
Be wary of lenders who specifically target customers with lousy credit. Not only would they burden you with high interest rates, they'd give you car options out of your price range. Take the initiative to look for the best financing options instead of going this route.
If you do your own homework and shopping around, you could have a lot of choices. And since you would have cash to pay, you could get a better price and a more reasonable list of car choices. They won't suspect you once had filed for bankruptcy some time ago in the past.
Straighten Up Your Credit Report
Settling any existing bankruptcy needs to be done before even thinking of an auto loan. You can get a free copy of your report online to check that all qualifying accounts have been closed. Check your credit report to make sure you have an accurate payment history.
The FICO score, as you may know, is your credit score and can also be found on your reports. Most people who have filed for bankruptcy recently would have FICO scores below 550. After two years though, you can have a score over 650, qualifying for market rates.
Be Selective With The Terms Of The Loan
Filing for bankruptcy doesn't mean you're all out of options right then and there. A down payment of 20% or more is a good start, so is having little debt and cash reserves in the bank.
You can further reduce your rates by being selective with your terms. Adjustable rates are usually lower than fixed rates loan. Another way to be selective is by choosing three-year, as opposed to five-year loans for lower rates.
Search For The Right Lender
Searching for the right lender will also help you save on loan costs. Analyze the fees and rates on multiple loan quotes. Car loan broker sites can help you analyze multiple offers side by side.
Be Proactive In Securing Financing
Be wary of lenders who specifically target customers with lousy credit. Not only would they burden you with high interest rates, they'd give you car options out of your price range. Take the initiative to look for the best financing options instead of going this route.
If you do your own homework and shopping around, you could have a lot of choices. And since you would have cash to pay, you could get a better price and a more reasonable list of car choices. They won't suspect you once had filed for bankruptcy some time ago in the past.
Straighten Up Your Credit Report
Settling any existing bankruptcy needs to be done before even thinking of an auto loan. You can get a free copy of your report online to check that all qualifying accounts have been closed. Check your credit report to make sure you have an accurate payment history.
The FICO score, as you may know, is your credit score and can also be found on your reports. Most people who have filed for bankruptcy recently would have FICO scores below 550. After two years though, you can have a score over 650, qualifying for market rates.
Be Selective With The Terms Of The Loan
Filing for bankruptcy doesn't mean you're all out of options right then and there. A down payment of 20% or more is a good start, so is having little debt and cash reserves in the bank.
You can further reduce your rates by being selective with your terms. Adjustable rates are usually lower than fixed rates loan. Another way to be selective is by choosing three-year, as opposed to five-year loans for lower rates.
Search For The Right Lender
Searching for the right lender will also help you save on loan costs. Analyze the fees and rates on multiple loan quotes. Car loan broker sites can help you analyze multiple offers side by side.
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