After Bankruptcy Get a Car Loan Approved Without a Cosigner or Collateral

Indeed, bankruptcy does do quite a bit of harm to your credit scores and your credit history. And you will probably find yourself being denied at most car dealerships, especially new car dealerships. Regardless of wisdom that may have been passed down to you, you will find that you do not really need a cosigner or offer collateral to get approved for a car loan. This is true even if you have bad credit or have declared bankruptcy in the recent past. On the other hand, having a cosigner or being able to offer collateral, will result in more speedy approval and better interest rates.Interest Rates Will Be HighRight after declaring bankruptcy, and maybe for a year or two thereafter, your interest rates are going to be high no matter what kind of you loan you seek. Because of these inordinately high rates, you may want to cool your heels for a year two. This will give you time to build your credit rating back up by taking out small loans that you repay successfully. But, being as how having an auto is such a fundamental necessity in our society, you should be able to find a loan and, if you shop around, one that has acceptable interest rates and acceptable repayment terms.You Do Have OptionsIn spite of your bad credit history or having filed for bankruptcy, loans are available. Even it the financier at a car dealer turns you down, there are other lenders out there willing to work with bad credit customers. On of those venues would be the online lending community. In fact, the rates and terms you find there will invariably be better than those you can get while held captive at a car dealership.Online Lenders Allow You to Pick and ChooseIf you go online and punch bad credit car loan into your browser, you will be rewarded with a wide array of lenders. Their rates and terms may vary widely, but you are in a position to examine what each has to offer and therefore find the best situation for your particular financial circumstance.Help Yourself OutYour interest rates will still be rather high because you are still a risky borrower. You can offset this and make the lender more eager to lend if you are prepared to offer a substantial down payment. Of course, as time passes and your credit rating improves, you may be able to renegotiate your loan with better rates and terms.Collateral and Cosigner ConsiderationsOf course, it goes without saying that if you can find a cosigner, you will gain more favorable rates and terms. The cosigner, of course, should have good credit scores and a reasonably well-paying job. The cosigner should also be aware that they are responsible for the loan in full should you default for whatever reason. If you have valuable property to offer as collateral, such as a home or other real estate, you will also be able to garner better rates and terms.Car Can Be The CollateralOne good thing about car loans, they do offer their own collateral in the form of the car itself. At any rate, if you are careful, you could be riding around in a substantial car, making payments you can afford, and cleaning up your credit rating at the same time.