An auto loan with bankruptcy is a real possibility today depending on your personal circumstances. With today’s economy more people than ever before are filing bankruptcy. And many of those who file a bankruptcy are in need of a new vehicle and have no idea how to go about getting one.
Sure, it is not going to be as easy for you as for someone who has a credit score of 710 but with a little preparation and knowledge an auto loan with bankruptcy can be done. You are marked with the capitol “BK” and any potential lenders will clearly see this. Let’s explore the best possible way to overcome the BK branding and still get you an auto loan.
The first thing I can suggest is to obtain copies of your credit report. Go to the websites for the three credit bureaus Experian, TransUnion and Equifax to request a copy of your records.
Do what you can to examine it for anything that should be removed. After a bankruptcy some debts that should have been removed get overlooked and you want to make sure this isn’t true for you. In addition draft a letter to explain your reasons for filing bankruptcy and ask that this letter be filed with each of your credit reports. This will be seen by future lenders and may make a difference in getting an auto loan with bankruptcy.
Next, do what you can to save some extra cash before visiting a dealership. It is not always required but a down payment speaks to the responsibility of all you are doing to repair your financial status. In addition, a down payment will lessen the amount you have to borrow for an auto loan and this will save you money.
Now it is a good idea to search for dealerships and auto consultants who offer specific financing for an auto loan after bankruptcy. Not everyone offers this type of loan but it has become more readily available than in the past. Because your situation is different than someone with perfect credit you may want to work with an auto consultant.
An auto consultant is a person who cares about you as their client. They have your best interest in mind because they essentially work for you. In addition, the consultant has many resources from which they cab locate vehicles, leaving you with a better selection to choose from. Along with that, the same is true for lenders who offer special financing so they may have the best chance to find you the best terms for your loan.